IRELAND - Ireland's National Treasury Management Agency (NTMA) is close to completing the outsourcing of its EUR8bn National Pensions Reserve Fund (NPRF), following the appointment of four new and one existing managers to run nearly EUR2bn in mandates.
The appointments - Capital International, Dresdner RCM Global Investors, Blackrock, Putnam and the existing manager, Bank of Ireland Asset Management - will run a total of EUR1.9bn for the NTMA. Their appointment brings the total value of outsourced NPRF assets up to EUR6bn. The remaining EUR2bn is due to be split between six to seven managers.
Capital and Dresdner RCM were awarded active EUR420m global equities mandates, each equivalent to 5.2% of the funds total assets. The remaining three managers each picked up EUR350m in active core pan-European equities mandates. Collectively, the three managers control 12.9% of the NPRF’s assets.
Aside from investment manager appointments, the NTMA has also appointed a transition manager and a global custodian for the NPRF. ABN Amro has been appointed as custodian, whilst Morgan Stanley will take the transition manager role.
According to a spokesman for the NTMA, the agency has already identified the investment managers that it wishes to appoint to run the remaining six mandates. Seven managers will be hired, with two being appointed to run the NTMA’s approximately EUR350m Japanese active equities portfolio.
The five other managers will be appointed to run a US enhanced index equities portfolio worth approximately EUR416m; EUR352m in US active growth equities; a US active value equities brief worth nearly EUR352m; a EUR104m Pacific Basin ex-Japan active equities mandate; and EUR416m in active Eurozone long bonds.
The eight mandates awarded so far represent 75% of the NPRF’s current value. In total, 85.2% of the funds will be outsourced. The remainder is invested in a passive Eurozone fixed income portfolio managed by the NTMA, worth just under EUR1.2bn.
By Geoffrey Ho
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