UK government seeks to open up illiquid assets to DC funds

first_imgThe UK government has unveiled proposals aimed at increasing workplace defined contribution (DC) schemes’ investment in so-called illiquid assets, such as infrastructure.Less liquid assets such as small and medium-sized companies or housing were attractive from a diversification and returns perspective for schemes, and were also important sectors of the economy, according to the government.To get more DC schemes investing in these assets the Department for Work and Pensions (DWP) yesterday announced plans for a new way of accommodating performance fees – often associated with illiquid assets – within the 0.75% charge cap on default funds used by auto-enrolment pension schemes. It also proposed a measure aimed at encouraging consolidation, which would require some or all smaller DC schemes to evaluate every three years whether the scheme ought to be merged with a larger scheme and wound up. “Consolidation is taking place, but it could be accelerated,” wrote Guy Opperman, pensions and financial inclusion minister, in the foreword to the consultation.“It’s remarkable that pension schemes from Australia, Canada and elsewhere have bought into UK infrastructure assets, but I rarely note similar investments by UK schemes,” he added. DC evolution ‘milestone’Maria Nazarova-Doyle, head of DC investment consulting at JLT Employee Benefits, hailed the DWP’s consultation as “a very important milestone” in the evolution of DC schemes in the UK.“For too long, DC schemes have been focused on investing in daily dealt funds with 100% liquidity, while not diversifying their investments sufficiently and leaving additional returns that come from an illiquidity premium on the table,” she said.“Recognition that this short-term approach is dangerously misaligned with the long-term horizons of DC savers is now hitting the mainstream and this consultation will bring this issue into the forefront of discussions.”Others appeared to question the effectiveness of the government’s proposals. “If this is done properly, then it will benefit both pension savers and the wider economy”Jonathan Lipkin, the Investment Association“With the benefits of scale and the desire and capability to invest in a broader range of assets, I am confident that we can change that, and can begin to engage members more by showing how their contributions are being visibly put to work.”The DWP consultation also set out plans to require larger schemes to disclose their policy on investing in illiquid assets and to report annually a rough percentage allocation.The UK’s pension fund and asset management trade bodies welcomed the government’s plans but suggested the devil was in the detail.Jonathan Lipkin, director of policy, strategy and research at the Investment Association, said: “If this is done properly, then it will benefit both pension savers and the wider economy and we look forward to working with the government and regulators to deliver on that ambition.”Caroline Escott, investment and stewardship policy lead at the PLSA, said: “It’s important to ensure schemes and trustees retain the freedom to invest as they wish in the interests of their members, so any new rules must respect that freedom and not be overly prescriptive.” Mark Jaffray, Hymans RobertsonMark Jaffray, head of DC consulting at Hymans Robertson, said pricing of illiquid assets would need to improve so that DC schemes could allocate a meaningful amount – suggested as being more than 10%.In addition, investing in illiquid assets required more governance, and trustees and pension managers needed to be comfortable with the associated risks, he said.Steve Webb, former pensions minister and director of policy at Royal London, said the government would need to take a much tougher approach if it wanted to see bigger DC pension investors in the UK.“The government admits that large numbers of small pension schemes already fail to meet even basic rules and regulations about how they operate,” said Webb. “Giving them another duty to review their scale once every three years risks being no more than a feeble tick box exercise.”He also questioned the Pensions Regulator’s capacity for enforcing the mooted triennial assessment given it was “busy dealing with multi-billion pound deficits across the world of [defined benefit] pensions”.Last year, Mark Fawcett – chief investment officer at NEST, one of the UK’s biggest DC master trusts – urged infrastructure managers to raise their game in order to win DC mandates and assets.last_img read more

PwC: Dutch pensions reform unlikely to cause costs explosion

first_imgPwC, which surveyed seven pension funds, two insurers, two pension providers, as well as the Pensions Federation, stated that all players found it difficult to come up with an estimation of costs after the transition to a new pensions system.This was due to uncertainties in the elaboration of the pensions accord as well as its translation into legislation, it explained.It said that, in general, costs will rise as a result of complexity through adding individual variables, including allocating returns to age cohorts and differing investment profiles.The consultancy indicated that costs for communication were likely to rise as the different aspects of the new system need to be extensively explained in order to keep the support of pension funds’ participants. The envisaged pensions reform in the Netherlands is unlikely to cause costs for pensions provision to explode as has happened in Australia, a survey by PwC has suggested.The study – commissioned by the Dutch government – attributed the pension costs increase in Australia to insufficient legal protection for pension savers who, for example, must pick their own provider.As the pensions agreement sticks to the mandatory participation in a pension fund, choosing a provider is not an issue in the Netherlands, said the consultancy.The independent survey had been instructed by parliament, which showed concern over steeply rising costs in the wake of Australia’s pensions reform.last_img read more

Danish pensions lobby chief quits after 15 years as latest action plan kicks in

first_imgPer Bremer Rasmussen, the chief executive officer of Danish pensions industry association Insurance & Pension Denmark (IPD), is stepping down, leaving the top role on 1 August, the organisation announced.His departure is linked to IPD’s unveiling of its new action plan, “Strategy 2025”, with the lobby group saying its supervisory board believed now was a natural time to have a new CEO.Bremer Rasmussen said: “It’s been 15 years since I joined Insurance & Pension Denmark. During that time, I have helped formulate and implement three ambitious strategies.“The board of directors adopted a new strategy at the end of 2019. It should be a new chief executive rolling it out,” he added. The association said it had started the process of finding a new leader.Under the new plan, which is to be implemented over the next few years, the sector aims to “be known for its contribution to solving some of the biggest challenges facing Danish and international society”, IPD said.It highlighted the welfare and security of individuals, as well as sustainability and the necessary green transition in Denmark and abroad.IPD’s Strategy 2025 document mentions the commitment the sector made alongside the Danish government at the United Nations to invest an additional sum of around DKK350bn (€46bn) in climate and environmentally-friendly electricity generation worldwide by 2030.It also addresses the need for continued and increased focus on ethical behaviour within the areas of investment, tax, data and with regard to consumers.“We will work to ensure that the industry gets into order within its own ranks, and we will set stricter requirements for those who work with us,” the group said in the plan.In another recent change at the top of the lobby group, in November Laila Mortensen, the CEO of labour market pension fund Industriens Pension, was elected as the new chair of IPD’s supervisory board.last_img read more

German workers call out for employers’ active role on occupational schemes

first_imgHeinke Conrads at WTWThe study noted that the COVID-19 pandemic had exacerbated problems, causing uncertainty for employees who had been forced to work on short-term contracts or who had lost their jobs.For thsi reason, it is important for employers to motivate workers with additional support. “A good benefits programme and financial wellbeing solutions are important tools to keep commitment high,” Heinke Conrads, head of retirement for Germany and Austria at WTW, said.WTW’s research further showed that 42% of employees would receive digital help to manage their savings in order to improve their financial situation, while 38% required access to savings and investment models, with only 29% requesting the support of an advisor.Employees who rely on financial knowledge were more likely to feel therye were “on the right track” (62%). “Financial education is not yet common in Germany, but it is a good instrument to supporting employees, especially in times of crisis,” Conrads added.Looking for IPE’s latest magazine? Read the digital edition here. Seventy two percent of employees in Germany have called out for active support from their employers on the design of their occupational pension plans, according to a recent survey conducted by Willis Towers Watson (WTW).Workers have asked primarily for flexibility, with 66% wanting to be able to transfer occupational pension schemes if they change jobs, and just as many have requested flexible payment options for pensions.The survey showed that protection for disability and death are also becoming increasingly important for employees.According to the research, companies may opt to improve benefits, especially among employees who are financially under pressure. It showed that 41% of these employees would like to receive more benefits, in the form of, for example, company pensions or protection for disabilities and accidents, with 38% wanting an increase in wages. But occupational pension schemes continue to play a very important role for the respondents, with 46% considering these schemes a reason to be loyal to their employers, and 70% of those with an occupational pension plan being proud to work for their employers. The numbers reflect the situation prior to the COVID-19 pandemic.The economic uncertainty caused by the coronavirus crisis has unsettled employees, and the financial uncertainty has had an impact on health, family life and job performance. A solid occupational pension plan, however, can tick one major concern for German workers off the list, Wilhelm-Friedrich Puschinski, head of general consulting at WTW, told IPE.“Employees in Germany trust their employer to offer them a good solution with excellent value for money and without having an economic self-interest; they are willing to reward their employers for a needs-based design with better motivation and loyalty,” he added.The study revealed that occupational pension schemes are perceived as a source of stability for retirement. It showed that 85% of the employees with an occupational pension save part of their annual income for old-age provisions, while only 61% of those without such a scheme do the same.“Occupational pension plans in Germany offer the highest degree of security for employees”Wilhelm-Friedrich Puschinski, head of general consulting at WTW“Occupational pension plans in Germany offer the highest degree of security for employees, with all existing pension scheme employers guarantee a minimum benefit, even if the capital markets slip,” Puschinski said, adding that many employers have actively reduced the risks both for employers and employees over the last few years, whilst maintaining general benefit levels.“There are different layers of protection against insolvency of both providers and employers, and the strict labour law in Germany protects employees from disproportional benefit reductions,” he said.Looking ahead, 67% were expect to navigate in worse financial conditions than their parents at the age of retirement, while at the same time struggling to build-up savings. The study also showed that 44% would invest more in old-age provisions, but only around 42% achieve its savings targets, a result in line with a trend seen over the past years.It added that 36% of participants could only rely on their salary without savings – 21% of these said that financial problems would impact their professional performance, and 23% had suffered from stress, anxiety or depression in the past two years.last_img read more

Amazing transformation: This is what a home renovation that took 37 years looks like

first_imgRestumping and laying the cement slab during the renovation of 64 Philip St, Hawthorne. Pic supplied. The major renovation happened in 2004, when the kitchen was converted into the main bedroom, a new kitchen was created as part of a back extension and a large, back deck added on.“That was the most exciting thing because we weren’t doing it ourselves,” Mrs Roebig said.“To see some professionals come in and renovate was just awesome!” The master bedroom in the house at 64 Philip St, Hawthorne, after it was renovated.This leads to the living and dining area, which is an open-plan space backing on to a wide-set deck.The new kitchen comes with a double sink, rangehood, gas cooking, dishwasher and island bar topped with white stone. The hallway in the house at 64 Philip St, Hawthorne, after it was renovated.The Roebigs have decided it’s time for a tree change, and another — less intensive — renovation project now awaits them in Boonah.“It’s a very hard decision to leave,” Mrs Roebig said.“The house has been such a big part of our life, and for all of our family, no matter how horrible it was.” The front of the house at 64 Philip St, Hawthorne, before it was renovated. Pic supplied. “That’s been our family joke.“If only dad was around to see it now!” The front veranda of the house at 64 Philip St, Hawthorne, after it was renovated.The downstairs living room comes with its own kitchenette, patio and bathroom — doubling as a guest or teenage retreat. Other features include polished timber floors, high pressed metal ceilings and wide archways. The kitchen in the house at 64 Philip St, Hawthorne, before it was renovated. Pic supplied. The back of the house at 64 Philip St, Hawthorne, after it was renovated.Gradually, over the years, the renovation process became more involved.The house was restumped and re-roofed and a concrete slab laid downstairs to create two levels.More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours ago“We dug out instead of raising the house because of the fireplace,” Mrs Roebig said.“We weren’t game to touch it.” MORE: Historic home set for hammer Inside the house at 64 Philip St, Hawthorne, after it was renovated.The property is for sale through Shannon Harvey of Place – Bulimba.RENO FACT CHECKTime taken: 4 years for major reno plus bits and pieces over 33 yearsTotal spend: Over $1mEnd valuation: $1.5m – $2m The backyard at the house at 64 Philip St, Hawthorne, after it was renovated.The end result is a four-bedroom, three-bathroom classic beauty with city views.As you enter the house, a formal lounge awaits, featuring one side of an original double-sided fireplace, with the other side in the master bedroom. Terry and Helen Roebig at the house they have spent 37 years renovating. Picture: Peter Wallis.HER father told her to burn the house rather than buy it, but Helen Roebig still thinks it’s the best $30,000 she ever spent.It was 1981 and high school sweethearts, Helen and her husband, Terry, were newly married and hunting for their first home when a rundown, two-bedroom cottage at 64 Philip St, Hawthorne became available.“My dad said; ‘Oh love, yes, buy it and put a match to it, will you?” Mrs Roebig said. RELATED: Reno magic – Manhattan in Ascot The front of the house at 64 Philip St, Hawthorne, after it was renovated.Built around 1910, the original house was in bad shape when the Roebigs bought it.“We had friends who were renting the house and we used to go there for dinner and sit around the fire,” Mrs Roebig said.”One day they said the house was up for sale through a deceased estate and I said we wanted an old Queenslander.“It had such an ugly facade, but when I went inside to the heart of the place and saw the veranda, then I could just see it.“It all became a picture for me and all that ugliness was just superficial, so we went ahead and bought the house for $30,000.” The front of the house at 64 Philip St, Hawthorne, after it was renovated.Mrs Roebig said her husband worked seven days a week, so they would work on the house together at night.“We filled a tip truck three times on the first weekend,” she said.“I started taking skirting board off the walls and I’d find there was VJ panelling underneath. so I’d take a piece off and that night, my husband would come home and take more off and there would be a big pile of it in the morning.“They’d cladded over everything — it was horrible.”Everything was painted in Mission Brown, which was the colour of choice in the 1970s and 1980s. The view from the deck of the house at 64 Philip St, Hawthorne, after it was renovated.Two of the four bedrooms have direct access to bathrooms and walk-in robes, while a fifth room can double as a study or guest stay. Downstairs, there’s a rumpus room, a work shop, a home business, a storage space and a separate living area. The kitchen and dining area of the house at 64 Philip St, Hawthorne, after it was renovated. The kitchen and dining area after it was renovated.In recent years, they connected the downstairs level with the upstairs by installing internal stairs and put in a new front veranda.“We’ve been renovating for 37 years, bit by bit, because we’ve done most of it ourselves,” Mrs Roebig said. The house at 64 Philip St, Hawthorne, before it was renovated. Pic supplied. The house at 64 Philip St, Hawthorne, before it was renovated. Pic supplied.last_img read more

Landlords set to win as vacancy rates tighten across QLD

first_img MORE: Welcome to QLD’s power streets LGA Mar-20 Jun-20 Australia’s most wanted streets revealed AFL star Jason Akermanis hopes to kick goals selling real estate The Veronicas selling their QLD hinterland hideaway REIQ head Antonia Mercorella said Queensland had a very high rental population at present (about 35 per cent), exacerbated by COVID-19. As interstate migration grows post the pandemic, Ms Mercorella said she expected rental demand to rise further. Regional areas are experiencing rent rises for the first time in years. Four-bedroom 18 Macquarie Street, Jensen, is for rent for $800 a week through Explore Property.“When you think about how Queensland has fared and how much more affordable it is over Sydney and Melbourne, I think we are going to see more people, particularly from southern states, move here. There’s greater affordability, terrific liveability, demand will rise in the post COVID world.”She said the tighter vacancy rates demonstrated the cyclical nature of the market.“It was not that long ago that I was talking about very weak vacancy rates and weak demand and yet here we are, not long after, looking at a different picture.”She said it was pleasing for landlords who have had to drop their rental asking prices in the past few years. “It’s nice to see that those landlords are perhaps being rewarded. When you are in an area where vacancy rates are tight, it does mean competitive, limited supply and therefore higher rents and the chances of negotiating rent reductions are reduced.“Most of Queensland is classified as tight now,” she said. “It definitely is more advantageous for the owner.” Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p216p216p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenHow much do I need to retire?00:58center_img Greater Brisbane 2.0% 2.0%Brisbane LGA 2.1% 3.2% Inner (0-5km) 2.7% 3.9% Middle (5-20km) 1.8% 2.4% Outer Brisbane² 1.8% 1.7% Ipswich 2.0% 1.9% Logan 2.0% 2.2% Moreton Bay 1.7% 1.4% More from newsCOVID-19 renovation boom: How much Aussies are spending to give their houses a facelift during the pandemic3 days agoWhizzkid buys almost one property a month during COVID-197 days agoCaboolture 0.8% 1.2% Pine Rivers 2.0% 1.7% Redcliffe 2.0% 1.6% Redland 1.5% 1.3% Mainland 0.9% 1.7% Bay Islands 4.3% 1.2% Gold Coast 3.0% 3.0% Sunshine Coast SD 1.8% 2.0% Sunshine Coast^ 1.4% 1.9% Caloundra Coast 1.0% 1.4% Maroochy Coast 1.4% 2.1% Hinterland^ 1.5% 2.1% Noosa^ 3.6% 2.4% Fraser Coast 3.1% 1.2% Hervey Bay 4.3% 1.6% Maryborough 1.2% 0.4% Cairns 3.5% 2.4% Source: REIQ Among the patterns that have emerged through COVID-19 is an increase in fly-in fly-out workers staying in regional cities to maintain jobs, and families moving to be closer together. Ms Mercorella said there was a need for greater rental supply.“So many renters do rely on private owners, and mum and dad investors to provide rental accommodation for them. It demonstrates a need to meet rental demand.”One area where tenants have maintained the upper hand is in Brisbane’s inner ring, within 5km of the CBD, where the vacancy rate is comparatively weak at 3.9 per cent.In those areas rents could get cheaper, according to Ms Mercorella, giving tenants the opportunity to lock-in good rates longer term.“Certainly in those areas there is more availability,” she said. This is down to a higher level of apartments in those locations but also the fact that a lot of stock that was originally short-term holiday rentals have come into the long-term market. “Because of COVID-19 and the inability of people to travel, some owners have decided to transfer from short-term lets to the long-term market. Then there are properties vacant because of students going back home to live with mum and dad and universities going online.” Residential vacancy rates: 2209/25 Anderson Street, Kangaroo Point, is up for rent at $425 a week.Landlords who stuck it out through Queensland’s latest period of rental oversupply are set to win after vacancy rates tighten across the state, sparking rent rises.Figures released by the Real Estate Institute of Queensland (REIQ) show that the majority of the state is sitting on tight vacancy rates, with regional cities experiencing the first rent rises in years. FOLLOW SOPHIE FOSTER ON FACEBOOKlast_img read more

GALLERY: Semi-sub Bluewhale II on sea trials

first_imgChinese shipbuilder CIMC Raffles has started sea trials for the ultra-deepwater drilling rig Bluewhale II, following the completion of equipment testing.CIMC started sea trials of the rig over the weekend and they are expected to last for three weeks, the builder reported on Monday.Designed to operate in water depths of 3658 meters and drill to depths of up to 15,240 meters, the rig accommodates a dual activity drilling package.The Frigstad D90 design unit is equipped with a dynamic positioning 3 system. It is scheduled for delivery in the third quarter of this year.According to CIMC, the sister rig Bluewhale I has just finished drilling its first successful deep-water well for methane hydrate in the South China Sea. This rig was named and delivered in February.The two 7th generation ultra deepwater drilling units were initially ordered by Frigstad Deepwater Ltd, a company that was jointly owned by Frigstad Offshore Group and CIMC, until late last year Frigstad Offshore decided to exit from its investment in Frigstad Deepwater’s ordered newbuilds to position itself for the industry recovery.As a consequence of the exit, Frigstad Deepwater Ltd became a wholly owned subsidiary of CIMC and was renamed CIMC Bluewhale Rig Ltd, while the operational management of the rigs was taken over by Bluewhale Offshore, another subsidiary of CIMC.The two semi-submersible units ordered by Frigstad Deepwater, Frigstad Shekou and Frigstad Kristiansand, were then renamed Bluewhale I and Bluewhale II.Offshore Energy Today Stafflast_img read more

Endúr Fabricom to deliver maintenance services on Aker BP’s installations in Norway

first_imgNorwegian oil company Aker BP has awarded Endúr Fabricom a framework agreement for the delivery of mechanical maintenance services on all of Aker BP’s installations on the Norwegian Continental Shelf.Endúr Fabricom said on Monday that the services under the contract cover all fields in operation where Aker BP is the operator.The company added that the contract was for three years plus two options for one year each.The scope of work under the contract includes offshore installation under the supervision of Aker BP’s maintenance department.The scope also includes onshore work for construction, prefabrication, repair, and overhaul of static mechanical equipment, sandblasting and paint, pressure testing facilities, and leak testing.Endur Fabricom’s CEO, Mikal Løvik, said: “The award is a confirmation that Endúr’s long-standing experience and quality in mechanical engineering is still competitive in a highly competitive market. We are looking forward to address this cooperation with Aker BP in the future.”Fabricom also said it previously performed work for Aker BP on the Alvheim field and considered Aker BP as a strategically important client.last_img read more

Siemens Gamesa’s Gearboxes for MHI Vestas-Powered Princess Amalia OWF

first_imgImage source: EnecoSiemens Gamesa has won a tender for the supply of gearboxes for Eneco’s ten-year-old Princess Amalia offshore wind farm (Prinses Amaliawindpark) that features 60 V80-2.0MW wind turbines delivered by Vestas and maintained by MHI Vestas, which will continue to carry out the regular preventive maintenance for the next five years.The scope of work for Siemens Gamesa comprises providing gearboxes, new or refurbished, for the purpose of exchange on the wind turbine generators at the wind farm. This includes maintaining a stock/pool of three to four gearboxes and an additional supply of up to two gearboxes per campaign, according to Eneco’s call for tenders issued last year.This is the latest of several new contracts signed as part of Eneco’s “smart asset management” set-up for the offshore wind farm, for which the government subsidy period has expired.Arjan Donker, Operational Manager Offshore Wind at Eneco: “We have an extensive portfolio of both existing wind farms and projects in the pipeline. Consequently, it is essential to continuously keep an eye out for better, smarter and more cost effective management and maintenance possibilities. This is particularly important for a wind farm that has to operate without financial support in the form of subsidy.”Along with Siemens Gamesa’s gearboxes, the developer has chosen GEV Windpower for the maintenance of rotor blades and ØER Energy, a subsidiary of the Norwegian company NSG Wind, for supplying technicians specialised in the replacement of main components.Since the beginning of this year, all transport and lifting services are provided by MPI Contractors, which will use one of its crane vessels. Eneco said that, in the coming years, the costs related to replacement of the main components will be minimised by optimising the use of the most expensive component – the crane vessel.“This makes it possible to combine the replacement of a number of main components, such as gearboxes, generators and/or rotor blades, in a single maintenance operation. In addition, we have opted for a flexible planning mechanism, which gives MPI Contractors room to optimise the use of their crane vessel in several projects,” the company stated.The 120MW wind farm, operational since 2008, is located 23km off the coast of IJmuiden, the Netherlands.last_img read more

SAAM to Invest USD 85 Mn in Fleet and Infrastructure

first_imgChilean port, towage and logistics services provider SAAM unveiled its plans to invest some USD 85 million to reinforce its tug fleet and maintain port equipment and infrastructure.The company added that the investment could also cover inorganic growth opportunities that SAAM is constantly evaluating, according to Óscar Hasbún, SAAM’s chairman.The investment comes on the back of the company’s new operating model, launched last year with an aim to make the organization more flexible, modern and efficient. “These efforts will help us streamline operations and continue expanding to strengthen our leadership in the region,” Hasbún added.SAAM revealed the investment as part of its 2017 financial results. For the year 2017, SAAM reported net income of USD 60.4 million, up 11% from USD 54.5 million in 2016.This figure includes USD 26 million in extraordinary items, mainly from the sale of its minority interest in Tramarsa (Peru).Highlights during the year include increased activity at Terminal Terminals Guayaquil (TPG) and the incorporation of the main port on the Pacific coast of Costa Rica (Puerto Caldera), which helped offset reduced results from the Logistics Division and Chilean port terminals.“In 2017 we concluded a high investment cycle with over USD 500 million in capital expenditures over the last four years, giving us state-of-the-art infrastructure and equipment to continue growing,” Hasbún said.Additionally, SAAM elected a new board which will hold office for the next three years. The board will now consist of Oscar Hasbún, Jean Paul Luksic, Francisco Pérez Mackenna, Francisco Gutiérrez and Diego Bacigalupo. Jorge Gutiérrez and Armando Valdivieso Montes were also elected as independent directors.last_img read more