THE NETHERLANDS - Legal & General Investment Management (LGIM) have picked up an inflation linked bond index mandate from Stichting Pensioenfonds Sappi Netherlands, the Dutch subsidiary of Sappi, the world-wide manufacturer of paper products.
The mandate is an investment of e16.25m into the newly launched Eurozone Over 5 year Inflation Linked Index Fund.
This LGIM fund, which tracks the Barclays Capital Euro Government EMU HICP Over 5 Year Index, was launched to meet demand from European pension fund investors seeking an investment fund which delivers a real yield based on the Eurozone inflation rate to enable them to closely match their liabilities.
Bert Stassen, spokesman for Stichting Pensioenfonds Sappi Netherlands, said Legal & General responded quickly to our requirement for a passive index-linked bond fund with long duration.
Tim Breedon (pictured), group director investments, LGIM commenting on the win said: “We have become the largest UK pension fund manager as a result of our index fund expertise and commitment to client servicing. This reputation is now enabling us to extend our business to countries outside the UK such as The Netherlands and Ireland.
Stichting Pensioenfonds Sappi Netherlands was advised by Mercer Investment Consulting in Amstelveen.
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