IRELAND: AIB Investment Managers (AIBIM), the asset management division of embattled Allied Irish Bank (AIB), is set to lose at least EUR740m in mandates from the transport operator Coras Iompair Eirann's (CIE) pension scheme.
Currently, AIBIM is the EUR1.2bn CIE pension fund’s sole investment manager. However, that is set to change since CIE’s trustees are due to meet shortly to appoint three additional managers to run the EUR1.11bn up for tender, said Frank Crumlish, chairman of the fund.
CIE will hire one active and two passive managers, added Crumlish, each receiving EUR370m in balanced mandates. AIBIM could still retain part of its existing mandate, as it was invited to apply for one of the mandates on offer. Crumlish declined to reveal further details.
The remaining EUR90m of the fund is invested in Irish real estate unit trusts.
CIE’s move to a three manager structure is the direct result of an asset allocation study carried out by the scheme in August. Crumlish stressed that the impending removal of mandates from AIBIM is not a consequence of the current scandal surrounding AIB’s US subsidiary, Allfirst .
The scheme is advised by David Hagger of Delany Bacon & Woodrow.
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