According to the active fund’s annual report, it decided to wind down its hedging programme over the course of the last financial year following questions over its effectiveness in reducing equity risk.“Potentially more effective approaches to managing and reducing risks are currently under review,” the report added.Until the end of the 2012-13 financial year, the EAPF hedged well over half of its £1bn non-sterling exposure, leaving only £387m in assets unhedged.The fund also calculated that its foreign exchange volatility stood at 13%, resulting in a potential £88.9m change in the value of its current overseas listed equity, a £41.6m change in the pooled equity holdings and a £9.8m change in overseas private equity.The EAPF also revealed that it was close to meeting its 25% target for exposure to what it regarded as the sustainable and green economy, noting that the £558m exposure at the end of March meant 24% of assets were allocated to the strategy.It added that, of the 24%, nearly half was invested in firms with more than 20% of revenues from energy efficiency or alternative energy projects, as well as waste water treatment or public transport.“A key part of our progress to meet our target was the allocation of £250m to real assets covering real estate, infrastructure, forestry and agricultural land to Townsend Group,” it said.“The mandate places a high priority on long-term responsible investments that meet our financial targets, with a preference to invest positively in sustainable real assets such as energy efficient buildings, renewable energy projects, public transport, water treatment facilities, eco-friendly farming and sustainable forestry.”However, it noted that its attempts to monitor the environmental impact of its holdings had revealed the recent shift towards clean and sustainable technologies had increased its environmental footprint, resulting in the active equity holdings exceeding the average MSCI All County World indices’ exposure.“Many of these companies are focusing on delivering sustainable solutions within their specific industries, whereby the environmental benefits … will be realised in their use downstream,” the fund said.,WebsitesWe are not responsible for the content of external sitesEnvironment Agency Pension Fund’s annual report The Environment Agency Pension Fund (EAPF) has stopped hedging its overseas currency exposure completely, estimating that changes in exchange rates are unlikely to trigger more than a 13% shift in asset value.The fund said it returned 8.4% over the course of the last year, below its 14.2% return in 2013.However, the results nevertheless saw funding within the EAPF’s £2.3bn (€2.9bn) active fund increase to 99%.It has recently implemented a new investment strategy that seeks “maximum value […] while minimising risk”.
The Finnish Cultural Foundation (FCF), which makes grants to groups and individuals working in the arts and sciences, returned 10.5% on its investments over calendar 2014.At end-2014, equities made up 62% of its €1.3bn portfolio, with 17% in fixed income, 15% in real estate and 6% in alternatives, primarily private equity.Equities made a 13.6% return, slightly more than the 13% from the benchmark.Equities are split equally between Finnish and global stocks. However, a large part of the performance was due to the FCF’s legacy holding in Finnish packaging manufacturer Huhtamäki, which has annual sales of more than €2.2bn.The holding, given to the FCF by the company’s founder in 1943, makes up 25% of FCF’s total portfolio, and 12% of Huhtamäki’s own share capital.Over 2014, the shares surged in value by around 40%.Ralf Sunell, CIO at FCF, said: “The company is a strong defensive stock with globally diversified sales – only 1% of revenues come from Finland. And management has done a good job in streamlining operations.”FCF has reduced the Huhtamäki holding from 17% to 12% of the company’s share capital over the past two years as part of its portfolio risk management but has still not reinvested the cash.Sunell said: “The market environment is very challenging, and it is very difficult to price assets.”As a whole, he said, FCF’s domestic portfolio did well because of good stock selection.However, the global equity portfolio underperformed because of its underweight position in the US.Sunell said: “Our managers considered euro-zone equities to be cheaper than US stocks, and this has hurt us a bit. But we are not benchmark investors. Our managers have very concentrated portfolios of 30-50 stocks.”Unlike pension funds with fixed liabilities, FCF can alter the level of grants it makes.It tries to spend 3-4% of net asset value, which leads to a long-term target income of 3-4% plus inflation – effectively 5-6%.“We can’t achieve that target over the long term without equities,” said Sunell.“But we are a true long-term investor, so volatility is not a risk measure for us, more a default.“It also means that when markets slump we try to have the firepower to step in – that’s where long-term returns are made.”And over the short term, he said the euro may continue to weaken but that the global economy could pick up, benefiting local companies.In its fixed income portfolio, FCF has for a couple of years not held government bonds, apart from some paper issued in emerging markets.Sunell said: “Govies are a bubble market and very expensive. We have been hunting coupons in corporate bonds and especially so on the high-yield side.“We have been investing in bonds with short durations. Coupons give us a decent cash flow.”Corporate bonds are mostly Nordic issues, with some from emerging markets.High yield comes from Europe and the US.Sunell said it was a conscious decision not to invest in long-duration government bond markets, and also to run a large cash position, and that has hit performance.He added: “Bonds, especially government bonds, are a very risky asset class when interest rates start to rise.” Meanwhile, FCF’s 2014 return on real estate was 7.1%, mostly from residential holdings, with the funds it invests in buying at good prices and growing value, said Sunell.The portfolio also includes offices, mainly in Helsinki, which are held directly.The foundation enjoys certain tax advantages in holding real estate directly in Finland – rental income is tax-free, for example.
The UK’s £16bn (€20.5bn) Strathclyde Pension Fund is aiming to invest £200m-300m in emerging market debt and increase its exposure to credit, steps that will largely complete an initial overhaul of its strategic asset allocation. The pension fund will also invest £30m in a core infrastructure fund.A spokesperson confirmed the Strathclyde Pension Fund Committee approved the changes yesterday. The decisions largely complete an initial overhaul of the pension fund’s investment strategy, designed to increase diversification. This was agreed last year, with the pension fund having considered several alternative strategies, all involving a large cut to its equity exposure and increased allocations to short and long-term “enhanced yield” strategies. The strategy it decided on for immediate implementation, dubbed “Alt 1” in committee papers, involves the smallest reduction in equities and the smallest increase to enhanced yield allocations.It has already taken several steps in the implementation of this strategy, having recently decided on multi-asset credit mandates, for example; it has achieved a 15% target allocation to long-term enhanced yield.Yesterday, the committee approved a proposal for the pension fund to “initiate a process to source emerging market debt investments of around £200m-300m”.An allocation of 2% would achieve the target of a 15% exposure to short-term enhanced yield (STEY) under the new investment strategy, according to a committee paper.The pension fund will take a blended approach to the investments by “diversifying exposure across hard currency sovereign debt and corporates, and local currency sovereign debt”.Attractive relative value, diversification and “reasonable” absolute returns are cited as the reasons for the pension fund’s wanting to make this allocation to the asset class.Separately, the committee approved new hedging/insurance and credit allocations, involving increased corporate bond exposure.Strathclyde Pension Fund currently has a 2% allocation to Gilts (1.4% index linked and 0.6% nominal) and a 3.6% allocation to credit, via sterling corporate bonds.The new asset allocation largely maintains exposure to index-linked Gilts but exits nominal Gilts and reduces the allocation to sterling corporate bonds by 0.6 percentage points, introducing a 3% allocation to US corporate bonds, hedged to sterling.According to a committee paper, Strathclyde’s desire for enhanced returns and more diversification led to the new asset allocation.The paper also proposes using funds offered by Legal & General, the pension fund’s passive bond manager.Direct infrastructureThe pension fund committee approved a £30m investment in a core infrastructure fund run by Equitix.The investment will be made via the pension fund’s direct investment portfolio (DIP), and is for the fourth fund being built by Equitix.Like the other Equitix funds, Equitix Fund IV focuses on core infrastructure assets.The final close will happen by the end of July, with a total investment target of £500m.In a paper prepared for yesterday’s committee meeting, the £30m investment is described as “appropriate both as a proportion of DIP and in the context of the total size of Equitix Fund IV”.Strathclyde’s DIP has a total capacity of £780m; the approved £30m investment in Equitix Fund IV will reduce the headroom as percentage of commitments to £140m.The committee meeting paper notes that infrastructure development and investment is “one of the key areas of focus for the DIP” and contributes to the long-term enhanced yield allocation under the pension fund’s revised investment strategy.“That allocation,” the paper reads, “is currently slightly overweight, but, in relative terms, this individual proposal [to invest £30m in Equitix Fund IV] would not materially increase that overweight allocation, and there are a number of positive factors that justify taking it forward.”It addresses issues such as the environmental, social and governance (ESG) policy of the Equitix fund and the team managing it, and notes that the previous Equitix funds have performed very strongly.Councillor Philip Braat, chair of the Strathclyde Pension Fund Committee, said: “Our first concern is always to get a good return for our members, who, after all, join the fund because they want to save for their retirement.“However, this is also the kind of investment that can let their savings have a positive impact in their own community.“Good, modern infrastructure – whether it is a new school or improved recycling facilities – not only makes them better places in which to live and work but creates jobs and further investment.”
The Dutch government should introduce retirement bonds with a return linked to GDP growth in lieu of a shift to pay-as-you-go (PAYG) pensions, according to two Dutch economists and the former CIO of the country’s civil service pension fund ABP.Arguing the European economy is facing stagnation as the number of retirees increased, Jean Frijns, Anton van Nunen and Theo van de Klundert say the resulting low interest rate environment made funded pensions difficult to sustain.Writing for IPE, Frijns, van Nunen and van de Klundert say the solution for the funding problems facing the current pension system is to transform it into one partially based around a PAYG model, although they accept that such a proposal does not “sit well” with many in power.“We therefore propose an alternative, which has some of the characteristics of an unfunded system as it offers a stable albeit low return but is also directed towards increasing government investment,” the authors say of their notion of retirement bonds (RBs) issued by governments. “The issuing governments would guarantee coupon payments and redemption and the yield would equal nominal GNP growth.“Revenues would be allocated to government investments to realise the targeted macroeconomic capital ratio as an answer to ageing.”The authors argue that any debt associated with retirement bonds should not see governments fall foul of European Union rules on debt, arguing the bonds can act as an alternative to European Commission president’s €315bn Investment Plan for Europe.The notion of retirement bonds is not the first radical shake-up of the Dutch pensions syetem backed by Frijns.He has previously proposed a shift from capital-funded pensions to a PAYG model and suggested ABP become a defined contribution fund.Read Jean Frijns, Anton van Nunen and Theo van der Klundert’s full piece on IPE.com
The ScamSmart campaign is designed to draw attention to the main ways fraudsters attempt to attract savers, and includes TV, radio and social media adverts. The campaign has government backing, with pensions and financial inclusion minister Guy Opperman stating: “Pension scams are devastating for hardworking people and can rob them of the retirement they planned. I would urge savers to always exercise caution and seek independent guidance or advice before making important financial decisions.” However, James Walsh, policy lead for engagement, EU and regulation at the Pension and Lifetime Savings Association (PLSA), warned that the industry “must remain vigilant” as perpetrators of pension scams were “very quick to adapt their methods”.He reiterated the pensions trade body’s call for an authorisation regime for all pension schemes to “give people confidence that their pension scheme is a legitimate home for their retirement savings”.Others warned that the UK’s pension freedoms policy – which has granted retirees easier access to their savings since its introduction in 2014 – had opened the door to increased levels of fraud.Gregg McClymont, director of policy at The People’s Pension and a former Labour party pensions spokesman, said: “Scammers’ eyes lit up when pensions freedoms were introduced. Four years later, government still has not acted to minimise the harm.“This campaign is a positive step towards fighting against fraudsters, but a pensions cold-calling ban is needed to stop more people’s pensions being plundered.”The UK’s treasury department is currently consulting on draft regulations to ban cold calling related to pensions. The consultation period closes on Friday.The FCA and TPR are part of a wider project, dubbed Project Bloom, aimed at combating pension-related fraud. It includes the UK government’s treasury and work and pensions departments, as well as the country’s Serious Fraud Office, the City of London Police, the National Fraud Intelligence Bureau, the Pensions Advisory Service, and the National Crime Agency. The UK’s financial services and pensions watchdogs have launched a nationwide campaign aiming to raise awareness of pension fraud.According to a poll of 1,018 adults with pension savings that was conducted on behalf of the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR), fraudsters steal an average £91,000 (€102,000) per victim by persuading people to transfer their money into unregulated investments.Almost a third (32%) of people aged 45-65 – the age group deemed most at risk of pension scams – “would not know how to check whether they are speaking with a legitimate pensions adviser or provider”, the regulators said in a statement released this morning.Mark Steward, the FCA’s executive director of enforcement and market oversight, said: “The size of individual pension pots makes pensions savings an attractive target for fraudsters. That’s why we’re urging anyone who is thinking about transferring their pension to check who they are dealing with and only use firms authorised by the FCA.”
In the letter, the trio quoted research by Moody’s Analytics, whci showed that climate change alone would have the potential to destroy $69trn (€62trn) in global economic wealth by 2100.The letter also said individual firms and industry groups are already rethinking their purpose and recognise issues such as the environment, society and employees need to be considered within their corporate vision and strategy.BlackRock announced at the beginning of the year plans to place sustainability at the centre of its investment approach, as it foresaw climate change as having a profound impact on the pricing of risk and assets around the world.“We welcome these efforts but recognise that we still have a long way to go,” the three pension funds stated, adding that environmental, social and governance (ESG)-related disclosure and analysis “remains the exception rather than the rule”.They said: “As asset owners, however, we strive to act as stewards of long-term capital, creating sustainable value by supporting companies with a clearly defined, long-term vision for growth.”The three pension funds, believe that asset management companies that integrate ESG factors throughout their whole investment process, vote according to the mandate to which they have pledged, and are transparent about their level of corporate engagement, demonstrate that they are committed to long-term value creation, in line with the trio’s interests.The document – which was produced by Hiromichi Mizuno, GPIF’s CIO, Simon Pilcher, USS’ CEO, and Christopher Ailman, Calstrs’ CIO – said they prefer to build and maintain relationships with asset managers that “fit this description over those who do not, and pledge to work with these partners to hold them accountable and ensure they deliver on the committments they have made”.USS, GPIF and CalSTRS urged both their partners and the companies they invest in to rethink their strategy and enhance their disclosures “so that we can collaborate in generating and enhancing long-term value”.InitiativesGPIF announced in January a partnership with Inter-American Development Bank (IDB) that focused on social bonds and last year the scheme invested in green, social and sustainability bonds totalling more than $3bn.In December the Tokyo-based fund also decided to suspend stock lending on its multi-billion dollar foreign equities portfolio in a move to better “fulfill its stewardship responsibility”. The decision would have an immediate global impact on short selling, which relies on stock lending or borrowing to do immediate trades on-market.Just last month, USS’s investment arm decided to close its internal developed markets equities team as part of a shift away from traditional stock-picking in these markets to an approach more focussed on the impact of environmental, social and other long-term factors.At the beginning of the year, USS submitted a letter to the Securities and Exchange Commission (SEC), criticising a proposed requirement that proxy advisors share advance copies of voting recommendations with companies before passing them on to the investors that are their clients. Three of the largest pension funds in the world – the UK’s Universities Superannuation Scheme (USS), the Government Pension Investment Fund (GPIF) in Japan and the California State Teachers’ Retirement System (CalSTRS) in the US – have joined forces to push for a long-term investment approach in a bid to create value.In a joint letter, the trio called on fund managers and corporate companies they invest in to ditch short-termism and to target sustainable economic growth.The document said “companies that seek to maximise corporate revenue without considering their impacts on their stakeholders – including the environment, workers, and communities – put their long-term growth at risk and are not attractive investment targets for us”.The schemes stated that as asset owners, their responsibility is to “provide for the post-retirement financial security of millions of families across multiple generations,” and that, as such, they “do not have the luxury of limiting our efforts to maximising investment returns merely over the next few years.”
This means that IORPs with the financial year ending at the end of December 2019 should have published their investment policy statements containing the detailed requirements for the first time by the end of April.But given the exceptional circumstances caused by the COVID-19 pandemic, BaFin, which published its decision on April 24, said it did not object if IOPRs would not follow the requirement in 2020.“Considering the date of the publication and the current situation, we welcome the operational relief for this year,” Klaus Stiefermann, managing director at aba, the German occupational pensions association, told IPE.Stiefermann added: “The BaFin statement was expected, however, we don’t consider it necessary in this form.”“The BaFin statement was expected, however, we don’t consider it necessary in this form”Klaus Stiefermann, managing director at aba“By providing a detailed opinion, EIOPA pushed national competent authorities to follow suit, but defining the information about these “principles” with numerous detailed requirements seems excessive,” he said.Aba has urged pension schemes over the past years to provide such statements to relevant parties, including members, beneficiaries and BaFin. “According to the revised directive, IORPs now have to publish the[se] statement[s],” Stiefermann said.Andreas Kopfmüller, investment expert at Mercer Deutschland, told IPE that asking to present investment strategy statements, annual verification processes and details on ESG criteria would increase the effort for IORPs to create and update their principles of investment policies.“It is another layer of reporting requirements that will need to be covered also by smaller providers that might already be at their resource limit,” he said.Kopfmüller expressed doubts that the actual addressees, for example the beneficiaries, have the necessary know-how to understand the details required by BaFin.“In our opinion, it would make more sense to use a scheme with a predefined scale, which the respective companies must fill out for the individual thematic blocks, for example assessment of return, risk content, or degree of sustainability,” he told IPE, adding that details improve the capacity to compare principles between different companies.“Some of the regulations, for example details on ESG, were recently added to the law and are now being completed by BaFin. This has nothing to do with the current crisis, but comes through BaFin’s agenda despite the crisis,” Kopfmüller said.Looking for IPE’s latest magazine? Read the digital edition here. BaFin, the German financial supervisory authority, has clarified details that pension schemes need to disclose on investment strategies.The regulator has shed light on the requirements of the Statement of Investment Policy and Principles (SIPP), and took into account documents that highlight the use of governance and risk assessment in the supervision of IORPs published by EIOPA, based on the IORP II Directive.In its latest decision, BaFin made note of the Art. 30 of the IORP II Directive implemented in Germany in the Insurance Supervision Act (VAG) sections 234i, 239 paragraph (2).According to VAG, IORPs are required to provide a statement on the principles of their investment policy four months after the end of a financial year at the latest, or immediately after a major change in investment policy.
The LV= Employee Pension Scheme, the pension fund for the UK insurance company, has converted a longevity swap held with ReAssure – and reinsured by Swiss Re – into a £800m (€866m) buy-in with Phoenix Life.The scheme said the move represented a significant de-risking step and reduced volatility in the amount of capital that sponsor LV= is required to hold in respect of defined benefit (DB) pension scheme funding risks.The fund’s trustee entered into the longevity swap market in 2012 and, following the conversion to buy-in, Swiss Re will continue to cover the longevity risk by providing reinsurance to Phoenix Life, it said.As with a standard buy-in, the scheme added, the trustee will receive cash flows that match the benefits due to those members that had been covered by the longevity swap. Huw Evans, chair of the LV= pension fund and director of BESTrustees Limited, said: “This conversion is an important step in improving the security of all scheme member benefits as it removes substantial asset and market-related risks as well as longevity and other demographic risks associated with a significant group of members.”The LV= scheme said the longevity swap conversion allowed the trustee to “capture attractive buy-in pricing, benefitting from the asset-sourcing expertise of Phoenix Life”.LCP advised on the conversion deal, while CMS was appointed as transaction legal counsel and provided specialist legal advice to the trustee.Redington provided investment advice to the scheme on the asset transfer and rebalancing of the residual portfolio.“This conversion is an important step in improving the security of all scheme member benefits”Huw Evans, chair of the LV= pension fundConversions of longevity swaps into buy-ins are becoming increasingly common as pension schemes’ asset strategies mature, and funds decide to capture attractive buy-in pricing and better position themselves for full buy-out, said Myles Pink, partner at LCP.Since the conversion of the British Airways pension scheme longevity swap in 2018, there have been at least eight other similar conversions.“There are tips to be considered and pitfalls to avoid in ensuring the conversion is cost-effective,” Pink said.Carolyn Schuster-Woldan, managing director at Redington added that the price lock portfolio proved “robust” in volatile markets, and there were particular challenges with the transfer of bespoke derivative contracts and assets.“Our previous experience with similar transactions proved invaluable in helping the trustee fairly assess each insurer’s offer, keep transaction costs to a remarkably low level and to ultimately achieve an investment portfolio that is on track for the next stage of the journey.”The LV= buy-in covers 4,100 pensioners and 200 deferred members currently alive and covered by the longevity swap.To read the digital edition of IPE’s latest magazine click here.
33 Maxwell St New Farm sits on prime real estateMore from newsParks and wildlife the new lust-haves post coronavirus17 hours agoNoosa’s best beachfront penthouse is about to hit the market17 hours ago“When we bought it people said you couldn’t possibly bring up children in New Farm,” she said.“It was nothing like it is now.” The lot is expected to be grabbed by a developer or buyer keen to knock down the current house and build a luxury homeIt sits on an elevated 941sq m block on the Brisbane River and is only 162sq m smaller than the vacant lot on nearby Mowbray St that sold for a whopping $11.3 million — a new land record — just weeks ago. Brisbane block of land sells for record price And you won’t find a must-have butlers pantry in hereBut the kids have now grown up and it is time to move on. “We have watched the cityscape evolve into a world city in this time,” she said. “Kangaroo Point was a wasteland of redundant ship building facilities and old warehouses and now it is home to thousands of people in densely populated apartments.“It’s been urban revival at its best. New Farm has will always have a close knit community atmosphere, a truly unique village vibe. “Both of my children now live interstate and it’s time to pass the baton for another family or families to have their forever home. This truly has been a magical journey.”The property has about 18.3m of river frontage and a private pontoon. Ray White New Farm principal Matt Lancashire said the property was attractive due to its development potential in Brisbane’s blue chip suburb.“Professional town planners have identified a number of potential development scenarios,” he said. “Take advantage of the current demolition approval, bring your architect and town planner to what is one of Queensland’s most sought-after riverfront land opportunities.”Expressions of interest close on August 30 at 5pm. Forget a reno. This house is expected to be knocked downTHREE decades of memories are expected to be demolished, but current owner Tina Quintner has no qualms about that. The New Farm Bikes owner bought 33 Maxwell St in New Farm in 1987 for $165,000 with her late husband, and has lived there for more than three decades.But even she admits it’s a “knocker downer”. Not a lot of work has been done to the original house
The back of the house at 47 Birch St, Marsden. The kitchen inside the house at 47 Birch St, Marsden.Marketing agent Ryan McHarg of Ray White – East Brisbane said the property at 47 Birch St, Marsden was quite simply “the worst house I have ever seen”.“We go in to a lot of houses … and this is the most damage I’ve seen in a house,” Mr McHarg said.“It was quite a good house up until the squatters got in there and did a bit of damage.”More from newsParks and wildlife the new lust-haves post coronavirus13 hours agoNoosa’s best beachfront penthouse is about to hit the market13 hours ago MORE: The suburbs you can now afford Buyers downsizing to new micro homes One of the bedrooms in the house at 47 Birch St, Marsden.But Mr McHarg said the state of the home had not put off potential buyers, with interest coming from first homeowners, investors and property flippers.“I’ve had 60 to 70 calls about it,” he said.“Given the fact houses are quite unaffordable at the moment, for a lot of people, this presents a really good opportunity to get into the market if they’re willing to do a bit of work themselves.” This house at 47 Birch St, Marsden, has been dubbed the worst in Brisbane.The house is scheduled for auction on June 1 at 4.30pm. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:02Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:02 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p360p360p270p270pAutoA, 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 Rate1xFullscreenAndrew Winter: How to flaunt your Unique Selling Point01:02 Inside the house at 47 Birch St, Marsden, which has been dubbed the worst in Brisbane.But whoever buys the property will have to purchase it sight unseen because the house has been deemed unliveable, hazardous and unsafe to enter.“That’s why, on purpose, I’ve tried to be as upfront as possible in the ad,” Mr McHarg said. This house at 47 Birch St, Marsden, has been dubbed the worst in Brisbane.WHEN you’ve been tasked with selling a house that looks this bad, there’s really no point in sugar coating the sales pitch.Dubbed the worst house for sale in Brisbane right now, there is nothing pretty about this three-bedroom brick dump on the city’s southside. In fact, it’s been deemed so unliveable that potential buyers are not even allowed inside to inspect it. RELATED: Buyer bags a bargain in blue chip suburb The bathroom inside the house at 47 Birch St, Marsden.The walls of every room have been kicked in, graffiti covers every corner of the house and the remnants of a fire grace the front bedroom.But at least home hunters know what they are getting themselves in for as far as the real estate advertisement goes.“If you are sick of doctored real estate photos or styling to make a property present better than it is come settlement day, rest assured there is none of that here,” the ad reads. One of the bedrooms in the house at 47 Birch St, Marsden.The property is owned by a community organisation that provides lower cost housing for the indigenous community. The proceeds of the sale will be used to fund new accommodation.