SOUTH AFRICA - State-owned pension manager Public Investment Corporation (PIC) has announced plans to withdraw one quarter of its assets - valued at ZAR146bn (US$20.5bn) - from five fund managers to invest in-house.
PIC had already pulled ZAR22bn from the five managers - Sanlam Investment Management, Stanlib, RMB Asset Management, Futuregrowth and Old Mutual Asset Management (OMAM) - last year, and PIC confirmed yesterday it would withdraw two thirds of the assets managed by the funds.
According to media reports, Futuregrowth is set to lose ZAR30bn, while Sanlam Investment Management and Stanlib will both lose ZAR20bn.
A spokesperson for OMAM declined to comment on how much it would lose, and RMB Asset Management was not immediately available for comment at the time of publishing.
In earlier news, Old Mutual's funds under management increased by 1.8% to reach ZAR222bn (US$31.1bn) by end September 2006, as the financial services group's profits were hampered by a weak rand and US dollar.
Adjusted operating profit year to date was ZAR12.6bn (US$1.76bn), lower than earlier predictions, and share prices fell as much as 3.7%in response to the news.
Year to date, Old Mutual reported a net profit of $981m, while Q3 net profit was $244m.
Jim Sutcliffe, chief executive, described the Q3 performance as "steady", and added that Skandia was on track to deliver its targets for 2008.
"We are confident that we will continue to increase our client base and assets under management, the foundations for our future growth," said Sutcliffe.
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