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.
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