DENMARK - The e38bn Arbejdsmarkedets Tillaegspension (ATP) has appointed the Los Angeles-based TCW to manage a US$200m US mortgage bond mandate.
TCW is the US subsidiary of asset managers Societe Generale Asset Management.
Henrik Jepsen, head of ATP’s fixed income said: “We examine a whole range of factors when we appoint managers. We look into the stability of the team, the historical performance of the team, the investment philosophy and the investment processes and so on. It’s hard to pin-point a specific factor, it’s the overall assessment that is behind such an appointment.”
Jepsen added that biggest mortgage bond market in Europe is the Danish market where ATP is very active.
“While we have the expertise to manage Danish mortgage bonds, we felt that we did not have the specific knowledge of US mortgage markets to manage it ourselves,” Jepsen added.
As at June 30, 2004, ATP’s equities allocation was 19.4%. Bonds and swaps stood at 75.7%, while real esate and private equity were at 3.7% and 1.2% respectively.
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