UK - Bank of Ireland Asset Management (BIAM) risks losing further pension business after the £2bn Lothian pension fund's announcement that it is putting a £180m global equities brief managed by the firm to tender - two years before the expiry of their fixed-year contract.
The Edinburgh-based fund is also putting a £78m Europe (ex UK) equities brief managed by BIAM and a £94m Europe (ex UK) equities mandate managed by Black Rock to tender following the completion of their contracts.
The fund’s decision to re-tender the global equities mandate was attributed to “internal changes within the current investment manager”.
BIAM has lost a series of mandates since six of its senior staff defected to join Perpetual Group in September last year.
This month, the US$60bn Ohio Public Employees Retirement System terminated a US$420m active international equities brief managed by the firm. The move followed recent terminations of a US$356m active global equity mandate by Alaska State Pension Investment Board and a AUS$35m brief by Australia’s Just Super.
The Edinburgh-based fund said BIAM’s contract was due to end in September 2007. The firm is mandated to actively manage a portfolio of stocks against a specific benchmark of one third US, one third Europe and one third Pacific with measurement against the FTSE Indices.
Lothian said BIAM would be invited to re-apply. The benchmark for the Europe (ex UK) equities portfolios will be the FTSE Europe excluding UK Index.
Deadline for tender is February 25.
Most people think it is right that savers take responsibility to protect from pension scams.
More than 100,000 savers face being landed with huge tax bills following tiny uplifts to their pension, a Freedom of Information (FOI) reply has revealed.
Alan Pickering says politicians should have the freedom to redefine what is meant by 'absolute'