RUSSIA - Moscow-based Pallada Asset Management has won a R180m active Russian equities and fixed-income mandate for the non state pension fund of the electric power industry.
The fund, Russia’s largest, is valued at R1.9bn.
Zaur Ganiev, president of the fund, said: “We were attracted by Pallada’s strong market leadership as the largest outside manager of Russian pension reserves. We were also impressed with the expertise and ability they demonstrated to introduce new investment solutions for the fund participants.”
According to Pallada’s chief investment officer, Elizabeth Hebert, pension reform in Russia is in its early stages and the Electric Power Industry Fund is strongly positioned within in the market.
“This is the beginning of a new era of pension reform in Russia and the pension fund of the electric power sector is on the cutting edge,” said Hebert.
“The fund has established itself as a leader by raising the standards for transparency that other large pension funds will be compelled to follow. They clearly understand that they need to earn the trust of plan participants and interest them with innovative product offerings.”
Pallada’s appointment is part of a reshuffle at the fund, which was originally invested in three mandates run by two undisclosed managers.
Assets are now divided between 6 mandates. The fund has retained its incumbents and employed a further four managers, including Pallada.
The win adds to the R1.2bn under management with Pallada, one of seven companies that comprise the State Street Global Alliance, a jointly-owned subsidiary of State Street Global Advisors and the Dutch pension fund, ABP.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
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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.