Pension funds for companies on Germany’s DAX index return 5%

first_imgThe companies on the German stock exchange DAX returned 5% on average on their pension plans over 2013, according to figures from Mercer.Looking at the 22 already available annual reports of companies that represent around 90% of pension liabilities in the DAX, the consultancy found that, despite the fact the average return halved year on year, funding levels improved from 62% to 66%. This is down to liabilities going down for the first time since the beginning of the financial crisis, according to Thomas Hagemann, chief actuary at Mercer Germany.“It seems a few of the DAX companies could even increase the discount rate for 2013, which led to a reduction of the liabilities,” he added. Others were able to hold the 2012 level or make only slight adjustments.Hagemann said it was a “great advantage” of the German system that companies did not have to fund their pension plans fully every year or achieve a minimum funding level, but were able to “sit out” drops in interest rates.“Last year, no company was forced to offset the lower funding level with additional payments,” he pointed out.Further, Carl-Heinrich Kehr, a principle at Mercer’s investment department, said contributions made by companies currently exceed the level of new liabilities, which he said might mean companies were shooting for a higher funding level in the near future.In total, pension liabilities in the DAX are now at €300bn, while assets have grown to €197bn.Over the last year, equities have boosted performance, returning around 20%, while bonds only contributed 1.4% and emerging market fixed income performed negatively.Overall, the equities allocation of around 25% on average increased by approximately 300 basis points over the period, but Kehr put this down “more to strong returns rather than active asset reallocation”.More than 60% of the DAX’s pension assets remain invested in bonds, while another 15% is invested in ‘other’ asset classes.last_img read more

Read More →

Cricket News Disappointing to see cricket being targeted after Pulwama attack: Sarfaraz Ahmed

first_imgKarachi: Sarfaraz Ahmed is ‘disappointed’ that cricket is being targeted after the Pulwama terror attack and said the high-profile India-Pakistan World Cup game should go ahead as planned despite calls for the match’s boycott from several quarters of the neighbouring country. The Pakistan captain insisted that sports should never be mixed with politics and said in the interest of the cricket crazy fans of both the countries, the match should be played.”The India and Pakistan match should be played as per schedule as there are millions of people who want to watch this game. I just don’t think cricket should be targeted for political gains,” Sarfaraz told the CricketPakistan.com.pk website.”It is disappointing to see cricket being targeted after the Pulwama incident. I don’t recall Pakistan ever mixing sports with politics,” he said.  The fate of the much-anticipated World Cup match to be held on June 16 at the Old Trafford lies in limbo after several former Indian cricketers called for its boycott in the aftermath of the ghastly terror attack that killed more than 40 CRPF personnel. “Sports should just be taken as sports,” Sarfaraz added.The call to boycott the match has come from some prominent names in Indian cricket such as senior off-spinner Harbhajan Singh and former captain Mohammed Azharuddin.But offering a different view, batting great Sunil Gavaskar and Sachin Tendulkar have stated that India should not hand over points to Pakistan by boycotting the game. They, however, advocated continued shunning of bilateral cricket ties.The Committee of Administrators (CoA) running Indian cricket also decided against taking any stand on the World Cup clash against Pakistan, but urged the ICC and other nations to “sever ties” with countries from where “terrorism emanates”.Former Pakistan captain and batting great Javed Miandad too was of the view that the game shouldn’t be targeted.”I felt bad after hearing about our pictures being removed from their (Indian) stadiums. Now this talk of boycotting the World Cup. I think India need to understand they can face consequences of such an action,” Miandad said. “I don’t understand the mindset. Do they really think they (India) can get away without playing the World Cup match?” he asked. He said India need to change its policy of mixing sports with politics. “I just hope better sense prevails,” the Pakistan cricketer said. For all the Latest Sports News News, Cricket News News, Download News Nation Android and iOS Mobile Apps.last_img read more

Read More →