F&C Management has won a £90m bond mandate from the pension fund of Octel, the petroleum additives and speciality chemicals company.
F&C's bond mandate will cover UK gilts, index-linked gilts and corporate bonds. The award follows a review and competitive tender that was carried out by the £508m fund. Watson Wyatt assisted.
Speaking about the mandate win, Patrick Johns, managing director and joint head of F&C's institutional business division said: I am delighted with our appointment. This is a great endorsement of our fixed income team, as well as the newly formed F&C Management.
Earlier this month, IPN reported that the fund was on the verge of appointing a new manager to run a £300m active balanced mandate. The mandate had been run by Phillips & Drew (P&D), but the fund decided to change managers following an asset allocation review conducted by Watson Wyatt.
F&C Management currently has £70bn in assets under management, of which approximately half is in bonds and with the rest in equities. Of F&Cs total assets, £50bn is from institutional investors. The company is owned by Eureko BV.
By Geoffrey Ho
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