IRELAND - Bank of Ireland Asset Management (BIAM) could lose a £120m active global equities mandate, with performance issues cited as a contributory factor in the decision.
The tender, announced by the c£950m Lincolnshire County Council pension fund, has followed on the back of a three-year review which led the fund’s trustees to put the mandate on the market.
Assistant county treasurer David Forbes said BIAM had already been shortlisted for the forthcoming beauty parade, but added:“They [BIAM] have underperformed the mandate over the last couple of years, as they have done in all their global mandates I believe.
“We have a full understanding as to why the underperformance has occurred, relating to the sort of companies they prefer to buy. But they have underperformed both the target and the actual index as well.”
A maximum of four managers will be shortlisted for the beauty parade. The deadline for tenders is 27 February.
B Finance will act as consultant alongside the pension fund’s normal actuarial consultant Hymans Robertson.
The fund is currently invested 38% in UK equities, 33% in overseas equities, 2% in private equity, 11% in property, 15% fixed interest and 1% cash.
A spokeswoman for BIAM said: “I can confirm that we currently manage money for Lincolnshire County Council and that we have been invited to participate in the forthcoming search process. We are very happy to have the opportunity to tender for the business. However, until such time as the process is completed, we don't feel it would be appropriate for us to comment further.”
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