US - The Oklahoma Public Employees Retirement System has moved to terminate a US$350m ex-US active equity mandate with Capital Guardian, marking another case in what has been a slew of losses for the Los Angeles based manager.
Kirk Stebbins, CIO of the $5.1bn fund said that it had shifted the mandate to an index fund with Barclays Global Investors, until such a time when it is ready to reinvest the money actively.
Capital Guardian, which took in a hoard of new business in 2000/2001, has lost a great deal of business over recent underperformance, particularly from public pension funds.
As five-year public fund contracts written in 2000 begin to expire this year, Capital could be in for even more losses.
Products to be particularly hard hit have been global equity and emerging markets. Over a five-year period to March 2005, Capital’s emerging markets performance has been unspectacular, returning -2.4% against a benchmark return of 1%.
In global equity, Capital outperformed the benchmark over a five-year period, but took a hard hit in 2004 when it returned 2.8%, against a benchmark return of 8.3%.
In another dent to Capital’s book of business MLC, part of National Australia Bank, cut back its allocation to Capital International in its Global Share Fund from 32% to 21%.
Separately, Fidelity, Lazard Asset Management, Vanguard and Platinum Asset Management lost mandates with MLC in the fund’s restructure.
The Cost Transparency Initiative (CTI) has launched a number of templates and guidance to help pension schemes deliver greater value for savers with enhanced disclosure of transaction cost information.
Kim Kaveh asks if trustees should be subject to maximum term limits for a particular scheme, after a PP poll showed mixed views on the matter.
In this week's Pensions Buzz we would like to know if you welcome the gentle hand of advanced supervision by The Pensions Regulator (TPR), after Charles Counsell said there will be new regulatory initiatives for 1,000 schemes.
Here they are - the finalists for the Women in Pensions Awards 2019...