KLP says most local authorities rejected tenders | New
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KLP commented on its stance in Norway’s new municipal pension market, saying in its interim report released today that most clients considering testing their options ultimately decided not to solicit offers from other providers.
In announcing its third quarter report, KLP said: âSeveral clients have considered going out to tender for their pension plans this year.
âGood customer care, low costs and good management, in addition to the benefits and predictability of owning KLP, have probably been decisive for most not to choose to put their pension plans in place. in tender, “said the spokesperson for Oslo. -based institution said.
The company – the dominant provider in the country’s municipal pension market – has faced increased competition in the industry since Storebrand returned to the market in 2020.
The Norwegian municipality of Ãygarden decided a month ago to switch from KLP, transferring nearly NOK 1.7 billion (⬠172 million) from retirement activities to Storebrand.
Storebrand also acquired the municipalities of Askøy and Vestland as clients and manages the pensions of more than 40 companies with public pension schemes, including theaters, museums and other cultural institutions.
Releasing the July to September results, KLP said it achieved a return above the one guaranteed by the company to its customers by 1.1%, bringing the return so far this year to 5.6%.
Sverre Thornes, CEO of KLP, said: âThe last quarter result was characterized by rising interest rates and a somewhat positive stock market.
Equities and alternative investments, which represented 27.9% of the joint portfolio at the end of September, produced a return of 2.1% for the quarter, KLP said.
Of that total, global equities generated zero, but the Norwegian equity portfolio returned 4.3%, the company said.
Meanwhile, long-term bonds and held-to-maturity bonds – an asset class with an allocation of 28.3% at the end of September – returned 0.8% over the review period. , measured at amortized cost, said KLP.
KLP added in the interim report that the total assets of its parent company increased by NOK 1.7 billion in the third quarter to reach NOK 694.5 billion at the end of September.
Last month, KLP responded to Ãygarden’s loss as a customer by calling for a change in municipal pension transfer rules, a company spokesman saying there could be factors other than price and the quality that motivated municipalities to change pension provider.
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