UK - Legal & General Investment Management has leapt to the top of the the Hymans Robertson league table for UK pension fund managers. In the firm's annual "Big 50" report, L&G managed £64.775bn of pension money compared to Merrill Lynch Investment Managers with £64.649bn and Barclays Global Investors with £62.376bn.
Last year MLIM came top with L&G third largest manager of UK pension funds.
L&G managing director of corporate pensions Chris Robinson said the success was due mainly to L&G’s passive approach. He said: “We are delighted. It shows the success of our index fund management operation and the client services we provide.
“We think it has been due to two major factors. The acceptance of index funds as the core holding for a defined benefit scheme as well as the default for a defined contribution scheme. What you get for a defined contribution scheme is certainty and reliability of performance at low cost.”
He added that L&G is to form a high performance team for equities and will search out new corporate bond business to enhance its active performance.
Hymans Robertson partner in investment practice John Hastings added that while 2000 had seen best performance for passive managers, this may change in 2001.
He said: “There have been periods recently when active management has started to outperform passive again. June 2000 to June 2001 was a period when active managers have been outperforming again. These things go in cycles. ”
Hastings also warned bigger companies, especially those that run mainly balanced funds with peer group benchmarks, not to rest on their laurels.
He added: “There are more specialist mandates happening now. The big managers may retain the client, but also find that a big chunk of the mandate has gone to a specialist manager.”
The report was the sixteenth of Hymans Robertson’s annual analysis of the biggest UK pension fund managers, with data compiled up to the end of last year.
By Paul Sanderson
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