UK - Majedie Asset Management is exploring equity-based options for further building its business after it was forced to close to new institutional UK equity business having reached capacity in both its products.
The UK equity boutique announced today it had closed its UK Equity Service to new business in line with its long term strategy to remain focused on performance rather than asset gathering.
Having closed its UK focus portfolio in September 2005, the decision means Majedie is now closed to all new institutional UK equity business.
“We are now considering other options to further build our business, all of which are equity-based and which will be driven by alpha generation opportunities, not geographic boundaries,” commented James de Uphaugh, managing director of Majedie.
“We will begin to seek out entrepreneurial fund management talent in 2007 with a view to marrying this with the existing operational platform and building another performance orientated equity team on a five year view.”
He added: “Since our launch in 2003, we have told clients and consultants that we were committed to closing to new business at a level where our performance would not be limited by excessive assets under management.
“In September 2004, we deemed that level to be £3bn, based on an assessment of various market and portfolio liquidity metrics. With the overall rise in the UK market this now equates to a figure over £4bn, hence our rationale for announcing closure today.”
The UK Equity Service had a rolling 12 month return of 25.4% for the period ending 31 October 2006, against the 21.7% return of the FTSE All-Share index.
Majedie has 80 institutional clients and more than £4bn in assets under management.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.