IRELAND - All US investment firms hired by Ireland's e8bn National Pensions Reserve Fund (NPRF) could soon be facing a review in the wake of the current market-timing scandal to have gripped the US fund industry.
This week, the National Treasury Management Agency (NTMA) which administers the NPRF, announced that it is to examine the position of Putnam Investments on its roster. Last week Putnam was charged with fraud and has since seen significant outflows from its mutual funds arm since the news broke. Some estimates put that figure at around $8bn. But Putnam, along with other US fund managers, also faces the threat of business losses from European institutions, including pension funds.
Deborah Reidy, head of investment manager selection at the NTMA, said that the commission would review Putnam’s e350m pan-european equity mandate next week.
NPRF also utilises Lord, Abbett & Co for North American value equities (e410m); Goldman Sachs Asset Management (North American growth equities - e410m); Invesco (North American enhanced index equities - e420m).
Reidy said that although no firm decision had been reached regarding their positions the fund was “keeping a close review of the whole situation.”
A decision on these managers is likely to be made by December, she added.
The British Medical Association (BMA) has warned chancellor Philip Hammond to reform the NHS pension scheme rules or doctors will reduce their working hours.
The lifetime allowance should be scrapped and replaced with a lower annual allowance, last week's Pensions Buzz respondents said.
Action for Children Pension Fund has outsourced its pensions administration to Trafalgar House.