US - In yet another blow to the beleaguered Bank of Ireland Asset Management (BIAM), the US$60bn Ohio Public Employees Retirement System (OPERS) has announced it has terminated the firm, which managed US$420m in active international equities for the fund.
BIAM has been on OPERS watchlist since November 2003 and was terminated by the fund last month.
The firm has suffered recently from the defection of six of its senior staff to join a new global equities business team established by Perpetual Trustees Australia in Dublin.
The most recent departure of UK head David Boal followed the resignations of deputy CIOs John Noland and Des Sullivan, senior equity managers Richard Kelly and John Forde and portfolio manager Sarah Molloy.
Deanne Rau, international equities portfolio manager, said the decision to terminate the manager was due to investment staff departures and performance.
Assets from the Bank of Ireland brief will be allocated to other international equity managers employed by OPERS, the fund said.
In addition to OPERS, Alaska State Pension Investment Board has terminated a US$356m active global equity mandate with BIAM and Australia’s Just Super terminated an AUS$35m brief since the departures.
Consultants Mercer IC and Hewitt & Becketts have both previously voiced concerns over the impact the staff losses could have on BIAM’s long-term performance.
Standard Life has increased exposure to risk assets in three out of five funds in its Active Plus and Passive Plus workplace pension ranges.
Some 48% of employers are unaware of the services or help they offer to members of their defined contribution (DC) schemes, according to Aon.
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