SWEDEN - AP7's Japanese and AsiaPacific equity mandates, each worth SEK3.7bn (US$570m), have been divided up between Nomura and Société Générale.
The deal means Nomura, which had managed all of AP7’s Japanese exposure, had a third of the portfolio value exchanged for an AsiaPacific mandate. It now manages two-thirds of the Swedish's organisation's Japanese exposure.
Meanwhile, Société Générale picked up the remaining Japanese portion previously run by Nomura, worth SEK1.2bn (US$85m).
Mark Roxburgh, executive officer at Nomura, commented: “We are delighted with this new appointment and it is a further confirmation of Nomura’s wider AsiaPacific equities management competence which we are strengthening with additional investment hires in our Singapore office.”
Roxburgh continued: “Over the last few years we have seen a pick up in interest from European institutional investors in relation to the Asia Pacific ex-Japan region and we believe this will continue as investors seek higher alpha returns.”
Schroders lost the third share of AsiaPacific equities to Nomura as a result of AP7's restructuring, but retained two-thirds of exposure to the sector.
These appointments came as a result of AP7’s passive management shake up which saw State Street Global Advisors (SSgA) lose out on SEK31bn (US$4.6bn), as Global Pensions revealed on 19 September 2007.
SSgA had previously managed all of AP7's passive investment, but following this shake up, was only awarded a third of the portfolio for US, European and Swedish investments.
This reallocation saw SSgA left with SEK15bn (US$2.2bn) to manage across the three regions.
In the same shakeup, Northern Trust took the remaining two thirds of the US and European portfolios, totalling SEK20bn (US$3bn) with Handelsbanken taking the remaining Swedish exposure of SEK11bn (US$1.1bn).
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