EUROPE/UK - Inco Europe - the regional arm of Canadian mining and metals company Inco - has appointed Rothschild Asset Management to manage a £20m specialist UK equities mandate as part of its £60m European Pension Plan.
The moves sees the axing of Gartmore Fund Managers and Glasgow Investment Managers in a move advised by Towers Perrin, Toronto. Rothschild beat Deutsche Asset Management and Barclays Global Investors to bag the portfolio which will be benchmarked against the FTSE All Share Index and have an outperformance target of 1.0% per annum after fees. Finance Director of Inco in the UK and Chairman of the Board of Trustees Alan Chainey said the move was taken as it was felt it would be better to have just the one UK equity manager. He added that the fund was not happy with Gartmore’s performance while the investment style of Glasgow Investment Managers “did not suit”.
We were impressed with their [Rothschild’s] whole investment process, from the way they conducted research, through to their portfolio construction and the risk controls they have in place plus, of course, their track record, said Chainey.
Speaking about the appointment, director of Rothschild Mark Connolly said that it reflected the “strength and stability of the UK Equity team.”
“This is an area in which we have a strong team, investment process and long-term performance track record. The brief will enable us to focus on our stock-picking skills within the UK market.”
BGI runs the scheme’s £30m fixed-income portfolio, while Capital International manages £10m in overseas equities.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.