Investors are ill-prepared for a loss of asset value due to climate change, according to a poll conducted at the IPE Conference and Awards 2014 in Vienna.During the event, 85% of the more than 500 delegates confessed that they were very badly prepared for such development.Although scientists cannot yet tell how the climate will be in a world 4 degrees Celsius warmer, there will be waves of disruption through various regions, with societies unable to cope, warned Howard Covington, chairman of the Isaac Newton Institute for Mathematical Sciences Management Committee.As a member of a panel on climate-related risks, he said the damage could be much higher if expectations about growth turn into expectations of decline. “At best, the effect would be zero, but in the worst case, portfolio values could drop 30%,” he said.In his opinion, the only way to cut emissions is a “€40trn investment to decarbonise the world”, which he described as a “cost-free project that will decrease risk”.Torben Möger Pedersen, chief executive at the €23bn scheme PensionsDanmark, said he saw opportunities for long-term investments in renewable energy, also because its risk factors were very different from those in equity markets.In his opinion, investors should focus on a “win-win approach”, as financial considerations could also support an anti-climate change agenda.As an example, he cited investments in energy-efficient buildings, which would not only help slow down climate change but also benefit the building sector.PensionsDanmark has committed 10% of its assets to direct investment in the renewable energy sector, he said.Covington further highlighted the importance of “more assertive” engagement with fossil fuel companies, aimed at encouraging them to develop transition plans to sustainable energy.Investors should also try to stop fossil fuel companies from lobbying against emission reduction and make them support a higher carbon price, he said.In the opinion of Pascal Blanqué, CIO and deputy chief executive at Amundi Asset Management, investors could benefit from exploiting risks, such as the mispricing of emission rights.He also identified risk factors, such as volatility and low liquidity, for investing in fossil fuel companies.Blanqué suggested pension funds should increase investments in water from assets available for passive management.Pederson underlined the importance of a consistent EU policy for investments in infrastructure programmes.Earlier during the conference, John Bruton, the former prime minister of Ireland, stressed that pensions funds had an obligation to mitigate the effects of climate change.
MN, the €110bn Dutch asset manager and pensions provider, is preparing to reduce its management team from eight members to four to cut costs and improve co-operation.New chief executive René van de Kieft is to lead a team consisting of Henri den Boer, head of pensions operations and insurance, Gerald Cartigny, head of asset management, and a head of finance, risk and IT, who has yet to be appointed.Paul Versteeg, director of investments, and Walter Mutsaers, head of client relations, are to leave the company. Van de Kieft will take on Mutsaers’s responsibilities, while Versteeg’s will be transferred to Cartigny. Kor Boscher, the current CFO, and Femke de Jong, director of information, will join the director of finance, risk and information’s team.The management shake-up is another step in MN’s ongoing efforts, announced last year, to streamline the company.At the time of the initial announcement in December 2014, MN said the four-year reorganisation was likely to come at the expense of approximately 200 jobs. MN is the provider for PMT and PME, the pension funds for the Dutch metal industry, and Koopvaardij, the pension fund for the merchant navy, which are also shareholders in the company.It is responsible for the pensions of approximately 2m participants affiliated with more than 36,000 companies.Last April, MN offloaded its fiduciary business in the UK to Kempen Capital Management, seven years after launching the subsidiary.
The looming introduction of a funding reserve will pose a considerable challenge for Irish pension funds and could lower benefits, according to LCP.Analysing the deficits of 26 of Ireland’s largest employers, the consultancy said the combined shortfall had risen by more than half to €5.8bn by the end of 2014.It also warned that funding levels had fallen despite combined contributions of nearly €1.3bn over the course of last year, pointing to the continued decline of the benchmark 10-year German Bund as a reason for the worsening situation.Conor Daly, a partner at LCP’s Dublin office, said the results of the consultancy’s 2015 ‘Accounting for Pensions’ report showed sponsors were under “considerable pressure” when trying to maintain their defined benefit (DB) arrangements. He added that the pending introduction of the risk reserve, a buffer equating to 10% of scheme liabilities that can be offset by investments in either cash or certain fixed income holdings, would come at a time when companies could “least afford it”.Daly said the risk reserve was likely to see a “welcome” reduction in the level of risky assets held by the Irish DB sector.According to the report, 45% of the sample scheme’s assets remained invested in equities, down from 49%.Drawing on data collated by the Pensions Authority for a 2014 review, LCP said only one-third of the 50 largest Irish schemes had sufficient assets to meet the statutory funding standard.“This suggests,” the report says, “the introduction of this new requirement may pose considerable additional challenges for trustees and sponsors in the coming years and may inevitably lead to pressure for further benefit curtailments.”The Pensions Authority’s Brendan Kennedy has repeatedly spoken of his frustration over Irish schemes’ unwillingness to de-risk, and LCP’s report still found some DB schemes holding up to 70% of assets in equities.The report said the scheme for building materials group Grafton had the highest overall exposure to equities, at 70%, followed by Kerry Group at 63%.Other DB funds significantly de-risked over the course of the year, such as Ornua.The company, formerly the Irish Dairy Board, reduced its equity holdings from 83% to 56%, and also saw its funding decrease by 10 percentage points to 72%.,WebsitesWe are not responsible for the content of external sitesLink to report by LCP Ireland
It is difficult to appreciate in today’s world the complete lack of local political accountability that led to rampant corruption, populism, economic mismanagement and human rights abuses. Conditions were so bad it took emerging market countries the better part of the 1990s to adjust before they finally overcame the hangovers from the Cold War. Only by the 2000s were emerging market countries able to begin to realise their growth potential. The only reason for investing in the Third World was to gain exposure to commodities, which, as Dehn argues, is the reason for the now outdated perception that emerging market investing is a ‘commodity play’.The concept of emerging markets reflects the new reality of countries where, as economists like Dehn argue, the natural forces of economic convergence cause them to outgrow developed economies. This does, in a sense, decouple them from developed markets. This is despite the fact – as the high volatility seen in emerging countries’ stock markets show – they are not decoupled from the problems that originate in the developed markets.What is driving this phenomenon is not their exports to the developed countries but the rise of domestic consumers through the creation of increasingly affluent middle classes in countries across the globe. The wealth creation now lifting billions of people out of abject poverty is a direct consequence of the adoption of liberal economic policies predicated on free trade in a global economy.Globalisation has always existed, but, in the past, it was confined to the elite and perhaps in a different way, to the have-nots. In the Middle Ages, it was silk from China to Venice for the elite. More recently, at the other end of the social spectrum, it was Indian labourers sent to South Africa, and Chinese labourers sent to the US, to build railways.Making globalisation have a profound effect on the day-to-day existence of the middle-income population across the globe has permanently altered the dynamics of international trade. The US has imposed its structure on the global economy and catalysed a global trading system. The WTO is the medium through which this has happened, and the impact of WTO, and GATT preceding it, is still unfolding. Governments may be given grace periods for opening up certain sectors – generic pharmaceuticals in India, for example, or financials in China – and a foreign company may still need local joint venture partners in certain sectors, but liberalisation has become structural. Furthermore, accession to the WTO requires countries to liberalise sectors of their economies systematically. While this may take decades to play out, the trend is unmistakeable. There will be sustained growth over the next 20-30 years, and, ultimately, those impediments will disappear.What characterises successful emerging markets is the rise of increasingly affluent middle classes. The rise of middle classes with enough disposable income to fuel domestic growth is essentially an urban phenomenon. Urbanisation is occurring at a rapid rate, with forecasts of 130m-200m Chinese moving from rural to urban areas over the next decade. Experience suggests governments create the right conditions for high domestic consumption through three key areas: establishing a safety net for old age, developing the use of credit and developing a retail infrastructure. These fundamental themes are driving the sometimes incredible performance of emerging markets and being played out over a timescale of decades rather than years. And they will continue for decades to come.Countries are being mandated to open up markets. The impact of the rules-based system that has been created means a nation state cannot afford to de-link itself from the world community because it then ends up being a North Korea. Myanmar (formerly Burma) has only recently realised the advantages of following this path as it moves away from its previous pariah status to joining in global trade. Despite the concerns we are seeing over emerging markets today, they cannot and should not be ignored in long-term institutional portfolios.Joseph Mariathasan is a contributing editor at IPE Long-term investors cannot ignore the emerging markets despite their near-term problems, writes Joseph MariathasanAshmore’s Jan Dehn, in a recent note, highlights the extraordinarily important question for emerging market countries – is the Cold War returning? His conclusion, thankfully, is that it isn’t. But the issues he raises are important for any investors in this area.As Dehn points out, the original Cold War, which lasted from the end of World War II to the collapse of the Soviet Union in 1989, was an unmitigated disaster for emerging markets. Indeed, for most of that period, they were referred to as the Third World, separate from the Western and Communist spheres of influence and characterised by abject poverty. As the US and USSR sought to bolster allies across the globe, there were numerous ‘hot wars’ taking place – Korea, Vietnam, the Soviet invasion of Afghanistan. But the more insidious evil that affected even more countries was, as Dehn points out, the Superpowers’ installing unaccountable dictators in countries right across the emerging markets.
The £1.7bn (€2bn) portfolio of the Church of England Pensions Board (CEPB) returned 2% during 2015, compared with 9.7% for the previous year, with property the outstanding performer. The CEPB runs a number of pension schemes, with more than 35,000 current or future beneficiaries, including clergy and church workers. The CEPB invests ethically, with its policy and practice shaped by the Church’s Ethical Investment Advisory Group (EIAG).It said these ethical restrictions added around 0.9% to its returns over 2015, with the ethically adjusted MSCI World Index returning 4.6%, compared with 3.3% for the unadjusted index. The fund is split into a £1.4bn return-seeking pool and a £287m liability-matching pool.Over 2015, the return-seeking pool delivered 2.5%, compared with 2.9% for the benchmark.The liability-matching pool returned -0.3% for 2015, compared with -0.8% for the benchmark. As of end-2015, the return-seeking pool was 55.8% invested in global equities, 17.4% in UK equities and 11.1% in property.Global equities returned 2.4%, compared with the benchmark’s 2.8%, while the UK equity portion delivered -0.4%, compared with a benchmark return of -0.3%.In its report, the CEPB said: “UK equity returns were slightly negative for the year, the FTSE 350 being down 0.3%. Significant headwinds included concerns over the future of the European Union, slowing economic growth in China and continued weakness in commodity prices, oil and metals in particular.”But it added: “On a more positive note, our allocation to small companies continues to generate better returns than mainstream large companies, with a return over the year of 6.1%, which was 0.2% better than benchmark.”And it said it continued to reduce the fund’s allocation to UK equities gradually, to reduce the effect of the home market’s artificial bias to global resource stocks and financial services.Furthermore, it said the return-seeking pool’s allocation to non-equities – now 23% – would be increased over the next two years at the expense of equities.Over 2015 as a whole, the outstanding performer was property, with a return of 12.4%, the same as benchmark.The property allocation, managed by CBRE, is invested via pooled funds in a spread of retail, offices, industrial warehousing and student accommodation.Geographically, there is a 50/50 split between the UK, and North America and Asia.Infrastructure – through First State and Antin pooled funds – returned 5.7% for 2015, compared with a benchmark return of 5.2%.While the amount invested rose from 3% to 3.8% of the total portfolio, the target allocation has now been raised from 6% to 9%.Pierre Jameson, CIO of the CEPB pension funds, told IPE: “We increasingly like private markets because we like the illiquidity premium.“Our largest pension scheme for clergy is quite immature, so we can take the opportunity to play the illiquidity premium and make enhanced returns.”First State investments during 2015 included Portuguese wind farm owner Finerge, and HH Ferries, which runs ferries between Denmark and Sweden.In early 2016, the CEPB agreed an allocation of £80m (5% of return-seeking assets) to private loans to smaller companies in the US, managed by Audax Senior Loans.Jameson said: “The loans will be repaid over 2-5 years, so there is some illiquidity here. And because they are private loans, they are not subject to mark-to-market rules.”
As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new research by consultancy Kirstein.In its latest annual Nordic Investor Survey, the firm found several trends that are continuing and becoming more pronounced in the investment behaviour of pension funds and life insurers in Denmark, Sweden, Norway and Finland — all aimed broadly at maximising returns in a low-yield environment.Casper Hammerich, investment consultant at Kirstein in Copenhagen, told IPE: “Everything investors are now doing stems from their hunt for yield; they are searching very intensively, and have come to the conclusion that if they are going to get the returns they need, then they need to look at alternatives.”Researchers documented that the institutional investors across the board were not only continuing to shift their assets towards unlisted investments and away from listed ones, but that these moves were intensifying. “Investors are scaling up internally in order to have the resources to do this themselves., This trend is led both by investors’ hunt for yield, but also, and maybe more importantly, led by investors continued search for lowering fees.” Hammerich observed.Some of the larger investors in the region are intending to double their exposure to alternative investments, he said.“When we look at the assets of the portfolios of these investors, large portions of them are going from the liquid side to the illiquid side, and this also means they are shifting from being transparent to less transparent, and this is a very interesting theme,” he said.A second theme revealed in the research is that investors are showing more of a preference for bespoke products when it comes to services from external managers, than they are for standard solutions, he said.“It can be very difficult now for managers to sell these off-the-shelf, plain-vanilla funds to investors,” Hammerich said.“Institutional investors are now focusing on the internalisation of asset management as well as regulatory aspects, and as a consequence, many have less time to focus on external management,” he said.This to a large extent excludes the “less interesting” managers, he said.Other themes highlighted in the survey are the moves from indirect to direct investments, from restricted benchmark mandates to broader, unconstrained measures and from beta mandates to ‘true’ active alpha mandates.On the trend from restricted benchmark mandates to broader unconstrained mandates revealed in the survey, Hammerich said that where external managers are used, pension funds and other institutional investors are looking for those managers who have the expertise to do, for example, several different types of fixed-income investments in a single mandate.He added: “Making the allocations themselves between grades of bond investment has proved difficult for many investors and hence they would rather have their managers do this.”
“The only periods with higher returns than the present were the years immediately following the Second World War, and during the 1990s, when the tech bubble pushed stock prices to extremes,” he said.Global equities, which made up 19.3% of the portfolio at 31 December 2016, were the best performer among the main allocations, with a return of 32.9%, partly reflecting the depreciation of sterling.In their report, the Church Commissioners said: “Particularly noteworthy was the strong returns of our value managers, which after a challenging period for value investing, outperformed strongly relative to the market to help drive returns at the fund level. Our emerging markets portfolio also helpfully outperformed the benchmark, as too did our US smaller companies portfolio.”However, equity performance generally was held back by the defensive equity portfolio – 7.7% of the overall assets at end-2016 – which delivered only 4.5% for the year, following “very strong” returns in 2015. Over 2016, part of the portfolio was repositioned from the more competitive US market to Asia and Australia.During 2016, the equities portfolio was reduced by 17.3%, partly for divestment and also rebalancing.Private equity, timberland among star performersMeanwhile, the Commissioners are planning to expand the allocation to private equity – currently 3.9% of the portfolio – significantly over the next few years. Over the long term, this has significantly outperformed quoted equity markets, delivering 26.1% in 2016.Another alternative asset, timberland, also gave a standout performance, returning 24.3%.Timberland already makes up 4.8% of the overall portfolio and is invested in Australia, the UK, and the US. The properties include two wind farms in Scotland, and Indian sandalwood plantations in Australia which should start delivering sustainable-produced oil for use in the fragrance and pharmaceutical sectors in the late 2020s.Credit strategies, forming 6.7% of the Commissioners’ portfolio, include another top performer, private credit strategies, which generated 33.1% over 2016. This allocation was started in 2012 to diversify and improve the return profile of the fixed income portfolio, and the allocation was increased further during the year.As a whole, the property portfolio, which makes up 23.7% of assets, returned 11.6% for the year, which the Commissioners consider “creditable” in a relatively weak market environment.The best performer was indirect property, with a 17.0% return on the fund’s 2.7% allocation; US and European investments all performed well, boosted by US dollar and euro gains against the pound.Residential – 6.1% of the overall portfolio – made 14.1%, while strategic land – 2.4% of the portfolio – returned 13.8%. Within the latter asset class, local authorities continued to identify land holdings as suitable for residential development, with all pre-existing site allocations continuing to be confirmed in local development plans.The largest property allocation – 8.8% of the overall portfolio – is in rural let land, which returned 9.5%.In terms of their tenanted farms, the Commissioners have focused on key areas such as water management, horticulture and agricultural infrastructure. A solar farm near Carlisle is now onstream, with another in Newport to be constructed during 2017.The Commissioner’s relatively recent 0.3% allocation to infrastructure returned 41.3% during 2016. There are two main commitments, an energy credit strategy focused on developed markets, and an “anerobic digestion” investment in the US.The latter is among the first of what Commissioners calls its “qualifying” impact investments, all made in 2016. It is a US$40m (€40m) commitment to Equilibrium Capital Management’s Waste Water Opportunity Fund. Equilibrium estimate that the investment will prevent the emission of over 500,000 tonnes of carbon dioxide equivalent per year.The Commissioners continue to invest in line with the ethical policies recommended by the Church of England Ethical Investment Advisory Group and the UN-backed Principles for Responsible Investment. Direct investment excludes companies involved in arms, tobacco, gambling and pornography. There are restrictions on the alcohol sector. The investment arm of the Church of England has announced returns of 17.1% on its £7.9bn (€9.2bn) portfolio for 2016, compared with 8.2% for the previous year.The fund’s investment target is inflation plus five percentage points. The 2016 performance takes the average annual return over the past 30 years to 9.6%, an average 6.0% p.a. above inflation.The endowment fund helps finance the Church’s activities, besides pensions arising from pre-1998 service.Andreas Whittam Smith, first Church estates commissioner, described the result as a ”stellar outturn”.
The Amsterdam Court of Appeal has approved a settlement worth €1.3bn between Ageas – the successor company to the Fortis financial services group – and organisations pursuing claims for financial losses arising from the group’s collapse in late 2008.The claimant groups include Deminor, a provider of investment recovery services, and the foundation Stichting Investor Claims Against Fortis (SICAF), which both represent hundreds of institutional investors, including pension funds from Europe, North America and Asia.Other groups involved in the settlement are Stichting FortisEffect and the Dutch shareholders’ association VEB.Several court actions in Belgium and the Netherlands were brought by or on behalf of investors that held Fortis shares during the several months preceding the group’s collapse in early October 2008. It was alleged that Fortis misrepresented the value of its collateralised debt obligations, its exposure to subprime-related mortgage-backed securities, the evolution of its financial position, and the extent to which its acquisition of ABN Amro – in a consortium with Royal Bank of Scotland and Banco Santander – had compromised its own solvency.The claimants also alleged that Fortis materially misled investors with public disclosures made in connection with a September 2007 rights issue, aimed at funding the acquisition of ABN Amro, including in the prospectus.In the 18 months between April 2007 and October 2008, the Fortis share price dropped from €30 to under €1.Fortis’ banking operations were jointly nationalised by the Belgian, Dutch and Luxembourg governments in September 2008. The Dutch insurance business was also nationalised by the Dutch state. Its investment management operation was acquired by BNP Paribas, which later also acquired 75% of the nationalised Fortis Bank.Meanwhile, the Belgian and international insurance arms remained in the group and continued operating as Ageas.Charles Demoulin, partner at Deminor, which represents more than 500 institutional investors in Fortis, said: “The law gives you rights as a shareholder and we think you should exercise them and even enforce them in court. But you have to select cases with a good chance of winning.”He added: “Awareness among investors, including pension funds, is increasing as they consider litigation to be part of their fiduciary duties to protect their assets. Ten or so years ago, participation in litigation was the exception – now it is much more the rule.”Dutch pension fund ABP – one of Fortis’ largest shareholders at the time of the collapse – declined to comment.
The Natixis report also noted that many other Korean pension schemes, including the country’s sovereign wealth fund Korea Investment Corporation, were facing the same pressure to seek higher returns.Due to their size and increasing appetite for external assets, Korean pension and life insurance companies play a large role in influencing global asset prices – in a similar vein to Japan’s Government Pension Investment Fund (GPIF), according to report authors Alicia Garcia Herrero, Natixis chief economist for Asia Pacific, and Trinh Nguyen, Natixis emerging Asia analyst.In their analysis of asset allocations, the authors found that NPS had increased its allocation to global equities to 23% in 2019 from 14% in 2015. Overall, the allocation to equities would rise to 45% from 40% in 2019.They said NPS planned to lift its allocation to alternatives from 11% today to 15% by 2024. According to NPS data, they wrote, most fixed income was allocated to the US and developed markets, such as Europe and Australia.Natixis also noted that allocation to emerging market fixed income was substantial as the hunt for yield went global.Korean life insurers were more conservative than NPS due to regulatory requirements, as they allocated more to domestic fixed income.The share of securities investments for life insurers stands at 20% of their total assets, but “that is only to rise in the future,” the authors said. “Moreover, other riskier assets, such as equities and corporate bonds, are getting a larger share.”The authors said South Korea was “turning Japanese”, and that this was not good news for asset managers, especially pension managers and life insurers.Like Japan in the 1990s, Korea had entered a period of low fertility rates and longer life expectancy. Economic output had decelerated to 2% year-to-date, and this was compounded by high household indebtedness and demographic deterioration.Investors faced a future of shrinking returns on assets and yield as potential growth rates fell, they said.“We believe that low growth, yield, and an increasingly-stringent regulatory environment will put further pressure on Korean lifers and pensions to seek higher returns offshore to compensate for a tougher domestic environment.” Korea’s $1.4trn (€1.3bn) pension plan and life insurance sector is being forced to allocate more to overseas assets, especially to alternatives, in search of higher returns.In a research note, French bank Natixis said Korean pension funds have become “very aggressive” in their hunt for returns and are increasing the weight of their asset allocation to global equities and alternatives.Natixis analysed the asset allocations of both Korea’s National Pension Scheme (NPS), which manages assets totalling $612bn – making it the third largest in the world – and top Korean life insurers, which collectively manage assets worth $776bn, which is equivalent to 45% of South Korea’s GDP.Together, NPS and these life insurance companies – or lifers – have assets under management of about $1.4trn.
There is plenty of space. The dining room. “It’s a dream house,” Mr Quaill, a retired businessman, said. “I don’t think I would change too much if I was building another house.” The couple had previously built houses on Sanctuary Cove and decided to build one final house on the Gold Coast.“Once we got the land we went and spoke with (architect) Bayden Goddard,” Mr Quaill said. “After building three houses you start to know exactly what you want in a house. “We wanted the house to be timeless and we didn’t want the architecture to date. We obviously also wanted to take advantage of the north-facing block.” The construction, undertaken by Thomas Hughes Construction, took 18 months and was completed in 2008. More from news02:37International architect Desmond Brooks selling luxury beach villa16 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoViews of Surfers Paradise. It’s a sight to behold at night.“We wanted a really big walk-in wardrobe so it’s actually the size of a small bedroom,” Mr Quaill said.A wine cellar and gym are located on the basement floor. Other features include a commercial lift, CBUS home automation system and 12m pontoon. There is also a hi-tech laundry with two Miele dryers and an Asko drying cabinet. Mr Quaill said the pair were selling so they could downsize. ON THE MARKET 87 Admiralty Drive, Paradise WatersAgent: Eddie Wardale and Michael Kollosche, Kollosche Prestige AgentsArea: 904sq mPrice: $10.5 millionInspections: By appointment Welcome to the epitome of luxury living. The sprawling 1,172sq m tri-level house features 9ft ceilings and plenty of space — achieved by the use of post tension floors to eliminate pillars and maximise the living areas. The residence features a contemporary facade, stylish finishes and an array of indoor and outdoor entertaining areas. As soon as you step inside the soaring ceilings create a sense of space and your eyes are drawn to the magnificent water vista. This middle level features all of the living areas including the kitchen with Gaggenau appliances and butler’s pantry, dining area, media room, formal lounge and informal living room, each with gas fireplaces, and an ensuited guest bedroom. Floor to ceiling bifolds create a seamless indoor-outdoor flow to the poolside terrace while retractable privacy screens offer a sense of seclusion when required. Enjoy a dip in the pool.The tiled infinity-edge pool wraps around the formal lounge overlooking landscaped gardens and the waterfront.“The pool comes up to the house on one side so when you’re in the lounge you can be looking straight onto the pool,” the 78-year-old said. Four ensuited bedrooms including the lavish master bedroom are on the top level.The main bedroom includes a dressing room, jacuzzi ensuite and dual shower as well as a large balcony overlooking the Surfers Paradise skyline. WHY WON’T THIS PROPERTY SELL? VETERAN MP SELLS GOLD COAST HOME 87 Admiralty Drive, Paradise Waters is on the market at $10.5 million.WHEN Barry and Pamela Quaill bought a waterfront property on exclusive Paradise Waters they knew they wanted to create something special. Fast forward 15 years and their home is the epitome of luxury living.