“Unifeeder is also a well-managed company that has consistently delivered strong results, and has significant long-term growth potential.”He told IPE Danica expected to make “close to double-digit returns” from Unifeeder.He said: “The overall strategy is to replace some of our bond investments with this type of investment.”In 2013, the average return in Danica Balance, the pension provider’s main product, was 7.8%, while Danica’s return on listed equities was 16%.The Unifeeder stake is Danica’s first major direct investment in a company and heralds the start of direct investing as a new investment strategy.Over the next two years, the pension fund is expecting to make direct investments totalling “double-digit billions of krone”.DKK10bn would equate to around 3% of the pension fund’s DKK330bn-worth investment portfolio.The change in strategy has been driven by Aarup-Andersen, who arrived two months ago.Aarup-Andersen was previously chief portfolio manager at Danske Capital, the asset management arm of Danske Bank, which is also Danica’s parent.He told IPE: “We want to refocus the investment process and strategy, and move towards alternatives.“Yields from government bonds and mortgages are very low, while equities are now fully valued because of cheap money.“We can find that extra yield in private markets where we are not up against hundreds of players.”He said Danica’s edge in chasing these deals was its size, its flexibility in the terms it can agree, and also the speed of execution of deals.Danica has not previously owned direct investments because of the skill sets needed to manage them.It is now hiring specialists to build an in-house team.However, it will not be a hands-on investor.Aarup-Andersen told IPE the investment case for future acquisitions would be driven by each specific investee company, and that there were no targets in sector terms.The key parameters would be that a company is well-run with strong financial management, capital generation and low risk resulting from the capital structure in place.He added that direct investments might be made not just through equity but also through debt such as mezzanine finance. Danica Pension, the Danish corporate pension provider, has bought a minority stake in marine logistics company Unifeeder for DKK400m (€54m) from private equity firm Nordic Capital, previously the sole shareholder.Unifeeder, now the largest independent pan-European feeder company, operates short-haul freight transport services into smaller ports worldwide, which super tankers are too big to enter.According to Jacob Aarup-Andersen, Danica’s CFO, the company is an attractive investment because it is asset-light – i.e. it leases vessels on a short-term basis rather than owning them.Aarup-Andersen said: “This gives it flexibility in managing capacity continuously, resulting in low volatility in terms of financial performance compared with companies that use highly leveraged debt structures to buy their ships.
The NCAA Tournament is ready to get underway. For the Mid Majors, those schools that are not in a major conference like the Big Ten, this tournament means everything if you get in. Here is where those year-end conference tournaments take their toll. Of the first ten conference tourneys held, seven of the season conference champs went down to defeat.It is not the conference champ that gets the automatic bid. The automatic bid goes to the season-ending tournament champion in most cases. What this means for the Mid Majors is that conference season champ most likely will not get a bid to the NCAA Tournament unless they had a phenomenal season. It is not the case with the major conference leagues whereas as many as 6-8 teams make the Big Dance.I know that they are not going to take two teams from these conferences, so the Mid Majors must put all of their effort into the season-ending tournament. This means that they play as many as 16 games in their conference through the year that really mean nothing to the NCAA Selection Committee. I wish I had the answer, because I know the extra bids will always go to the bigger schools.
Published on October 2, 2015 at 2:10 pm Contact Sam: [email protected] | @Sam4TR Facebook Twitter Google+ Men’s SoccerOpponent: at DukeWhere: Durham, North CarolinaWhen: Friday, 7 p.m.Syracuse is on a three-game streak of scoring two or more goals. The Orange, before that, hasn’t been able to record consecutive multi-goal games this season. However, in this stretch of three multi-goal games, Syracuse has scored 10 goals of its 20 goals on 47 shots. It took 93 to score the first 10. There are three key adjustments which made it all possible.More: 3 adjustments boost Syracuse offenseField HockeyOpponent: Monmouth and CornellWhere: J.S. Coyne StadiumWhen: Friday, 4 p.m. and Sunday, 2 p.m.For No. 2 Syracuse, going into halftime trailing two tough opponents was not optimal, but players didn’t worry. In the second half, the work the team members did over the summer showed as the Orange ran Boston College and North Carolina ragged, using its superior fitness to grind down the Eagles and Tar Heels en route to two more wins.AdvertisementThis is placeholder textMore: Superior conditioning leads Syracuse to 2nd-half successWomen’s SoccerOpponent: LouisvilleWhere: SU Soccer StadiumWhen: Sunday, noonShortly before practice ended on Tuesday morning at the Hookway Fields Complex, Syracuse players running a drill in the penalty box, but neither a ball nor a goalie were used. Each SU defensive player had to shadow, and track step-for-step, its mark in the penalty box for 10-second intervals. Defending set pieces will be key for the Orange this weekend after allowing three goals to Virginia Tech, all off set pieces.More: Syracuse works on improving set-piece defense ahead of game against LouisvilleVolleyballOpponent: at Louisville and at Notre DameWhere: Louisville, Kentucky and South Bend, IndianaWhen: Friday, 7 p.m. and Sunday, noonSoftballOpponent: Binghamton and Le MoyneWhere: Binghamton, New YorkWhen: Saturday, noonTennisOpponent: Riviera and ITA Women’s All-AmericanWhere: Los AngelesWhen: Saturday, Oct. 3 to Sunday, Oct. 11 Comments