UK - Fund managers are ramping up their global equity teams as consultants take a growing interest in the market.
- Morgan Stanley moving research on to a “global sector” basis.
- Goldman Sachs increasing the number of its global sector sales specialists.
- Threadneedle Asset Management adding a further two people – Andrew Holliman and Jeremy Podger – to its global equity team.
Threadneedle Asset Management head of global equities Dominic Rossi explained: “We believe demand for various types of global equity products from both retail and institutional clients will increase significantly and have started to build up our global equity team in anticipation of this.”
Morley Fund Management global equities fund manager Paula Allen expects consultants to become increasingly interested in the asset class.
“We are close to the crossroads when there is a real switch over from regional funds to global,” she said.
HSBC Actuaries senior investment consultant Paul Watson agreed that more fund managers were moving towards a global approach.
He said the fact that managers were picking the best stocks from a global universe was more efficient than just tagging together several region funds, and in turn pension funds would get better risk returns.
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.