IRELAND - Ireland's National Treasury Management Agency (NTMA) has completed the mainstream manager selection process for its EUR8bn National Pensions Reserve Fund but is now investigating the possibility of investing in hedge funds, real estate and private equity. The fund has now appointed managers to 16 mandates with Irish Life Investment Management and Bank of Ireland Asset Management being the only two domestic players.
The most recent raft of appointments saw seven managers awarded active mandates. They were: Lord, Abbett & Co for North American value equities (EUR410m); Goldman Sachs Asset Management International for North American growth equities (EUR410m); Invesco Institutional for North American enhanced index equities (EUR420m); Daiwa SB Investments and JPMorgan Fleming Asset Management each for EUR125m of Japanese equities; Schroder Investment Management (Singapore) for Pacific Basin equities (excluding Japan) (EUR93m); and Irish Life Investment Management for a EUR420m mandate for long eurozone bonds.
But the fund has now revealed that it is also considering a move into alternative investments such as real estate, hedge funds, and private equity. The commissioners will, according to Deborah Reidy, head of investment manager selection at the NTMA, take a decision by 28 May as to how they will move forward with this. She said that the agency would be ready to start the tendering process in June or July.
In March of this year the first five active mandates were awarded, being divided into global and pan-European sections. Capital International and Dresdner RCM Global Investors each picked up a EUR420m mandate for global equities, while EUR350m pan European equities mandates were won by Bank of Ireland Asset Management, Blackrock International and Putnam Investment.
Barclays Global Investors picked up a sizeable chunk of the passive mandates. It won a US equity passive mandate valued at EUR690m and a eurozone equity portfolio for EUR1.1bn.
The second EUR1.1bn eurozone equity mandate is shared between State Street Global Advisors and Bank of Ireland Asset Management, with the former having responsibility for the management of the money.
By Shona Cronin
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