Redeem in full from KB IDEF

The Governing Board has decided to redeem in full the investments in the Kleinwort Benson Institutional Developed Equity Fund H EUR (KB IDEF) worth approximately €65m.

The Board decided to reduce allocations to equity funds with dividend strategies due to modest expectations from the strategy and opted in favour of equity funds with risk management strategies.

KPST had two dividend equity funds (Pictet High Dividend and KB IDEF) and based on respective performances, particularly over the difficult last 12 months, it was estimated that the Pictet Fund is the one that offers the higher stability and possibility for success in the future.  During the two years investments with KB IDEF were held, net gains of €7.04m (12.16%) were realised.

Nordea GSEF, which is managing well the risk of equities in its portfolio, will be entrusted with an additional of €50m which are to be financed from the proceeds of KB IDEF. Prior to the additional investments, assets invested in Nordea GSEF (since mid-2014) were €64m and have generated a return of €16.7m.