GLOBAL - Barclays Global Investors has topped the 2002 European (ex-UK) ranking of recorded pension fund mandate wins with E2bn of new business gained throughout the year.
According to IPN, most of BGI’s new wins during 2002 came from Ireland’s National Treasury Management Agency (the Irish state reserve fund), with the fund manager picking up a E1.1bn passive Eurozone equities mandate and a E690m passive US equities mandate. BGI also picked up an E206 active inflation-linked bond mandate from Dutch fund PGGM.
The NTMA also awarded a passive E1.1bn European equities mandate jointly to State Street Global Advisors (SSgA) and Bank of Ireland Asset Management (BoI). The mandate, which is worth 14% of total NTMA assets, helped both SSgA and BoI to sixth and fourth place respectively in IPN’s rankings.
BoI also poached a E370m balanced mandate from AIB Investment Managers (AIBIM) from Coras Iompair Eireann (CIE). AIBIM lost a total of E1.1bn in mandates making it bottom of the table, as the Irish public transport group’s pension fund decided to terminate AIBIM in favour of BoI, Irish Life Investment Management (ILIM), and the US-based firm Capital International. AIBIM, the asset management arm of the troubled Allied Irish Bank (AIB), was previously the E1.2bn fund’s sole external manager.
SSgA’s sixth place was in part due to picking up a E1.25bn US equities mandate and a E200m global equities mandate from Dutch funds PMI and SVM respectively. The manager also won a E200m passive global equity mandate from Internal Caisse de Pension Poste in Switzerland and a E76.2m passive government bonds mandate from Rothschild Asset Management from Belgian fund VRT.
But the year was not just good news for SSgA as it lost E261m in emerging market debt from the Dutch pension fund of KLM to Ashmore Investment Management, Bridgewater Associates and Pimco. In Sweden Capital International and Schroder Investment Management both won E140m active Japanese equities mandates at the expense of SSgA and JP Morgan Fleming Asset Management took E103m in active Asia Pacific equities (ex-Japan) and Prudential Investment Management E734m in active US corporate bonds as AP3 restructured its asset allocation.
F&C Management found itself in second place thanks to the new Stichting Prepensioenfonds voor her Beroepsgoederenvervoer awarding it a massive E1.75bn pre-pension global equity and bond mandate. Funds from the Dutch road transport and haulage company will be staggered at E250m per annum over a seven year period. The money will be invested in several pooled asset categories, managed by separate teams. Equity exposure will cover Dutch, European, US, Japanese, Pacific and emerging markets. Fixed-income investment will include euro and non-euro bonds, dollar and yen block bonds, emerging market debt and global credits. Chairperson of the fund Herma Polee said: “F&C already manages some of the assets sector pension fund, and we have been pleased with their performance.”
The Vanguard Group was third partly due to having been appointed to two pooled bond mandates worth a combined E600m by PMI-SVM, the Dutch pension fund for metal industry workers. PMI gave Vanguard E300m, benchmarked to the Lehman US Government Bond Index and SVM gave E300m benchmarked to the Lehman Euro Aggregate Index.
Merrill Lynch Investment Managers was also awarded E400m by PMI to run a segregated equities mandate benchmarked to the FTSE North America Index, a mandate that helped Merrill avoid the disappointing year that it had in the UK where it finished bottom of the table. Merrill has a disastrous year in the UK losing over £3bn in pension fund money, including a £714m active balanced mandate from Essex County Council Pension Fund, £100m in global equities from London Borough of Harrow, £500m
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