ICELAND - Four Icelandic pension funds are considering pooling their assets, in a move that could lead to the retendering of about Ikr1.2bn (approximately EUR136m).
A source close to one of the funds, said that talks were held last week between the four-strong group,which represents a mixture of provincial and corporate funds. Each fund holds similar size assets of around IKr300m.
According to the source, whose fund is also on the verge of shortlisting for a separate portfolio, the funds are to put forward proposals to their respective boards at the end of this month. If everything goes to plan the merger is scheduled for Q2. In the meantime the fund will put its selection process on hold.
The trigger for the merger is believed to be cost efficacy.
* Last year six mid-sized Dutch corporate funds also declared their intentions to form an alliance around their asset management, custodian, and administration functions.
The funds - Stichting Pensioenfonds TNO; Stichting Bedrijfspensioenfonds voor Het Baggerbedrijf; Stichting Pensioenfunds HBG; Stichting Pensioenfunds Volker Stevin; Stichting Pensioenfunds Productschappen, and Pensioenfunds Peek& Cloppenburg - represent a combined membership of 60,000 and funds of NLG10bn (EUR4.5bn). By Madhu Kalia
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