Financial Times Mandate articles from March 2004

Financial Times Mandate archives from March 2004

News: Clearwater ousts Invesco amid concern over legal 'distraction'.(Invesco Capital Management Inc)(Brief Article)
March 22, 2004... Invesco Capital Management has been sacked by a major US public pension fund for poor performance and concern over fraud charges. The $480m City of Clearwater pension fund in Florida terminated a $19m global equities brief with the asset...

News: China correction looms ahead of bullish forecast for India.(Brief Article)
March 22, 2004... Pictet Asset Management, the fund management arm of Swiss private bank Pictet & Cie, has tipped India as a future bull market contender while also warning of an imminent correction in China. The manager, which has GBP26bn (e38bn) of funds...

News: Schroders faces oe30m loss at Falkirk Council.(Schroder Investment Management Ltd.)(Brief Article)
March 22, 2004... Schroder Investment Management is set to lose GBP30m (e44m) from a UK equity mandate at a major Scottish local authority pension scheme. The GBP600m Falkirk Council pension fund is tendering for a private equity manager to run a GBP30m...

Editorial: Are new strategies a shot in the dark?(Brief Article)(Editorial)
March 22, 2004... To reduce risk in portfolios, investors are gradually learning that diversification is key. However, we are beginning to see that restructuring an investment strategy is not without its pitfalls. Despite grasping the hedge fund nettle with...

News: In brief - CalPERS and FRM part company over T&C.(Financial Risk Management)(California Public Employees' Retirement System)(Brief Article)
March 22, 2004... The $167bn California Public Employees' Retirement System (CalPERS) has ended its relationship with hedge fund of funds manager Financial Risk Management (FRM) because the two could not agree on terms and conditions. FRM was one of three...

News: In brief - Louisiana seeks US managers for $200m.(Louisiana Department of Treasury)(Brief Article)
March 22, 2004... The State of Louisiana Department of Treasury is seeking US fixed income managers for $200m in assets. The treasury is seeking domestic managers to run a portion of its $500m Medicaid Trust Fund. It is anticipated that one or more...

News: In brief - WM and S&P to offer performance figures.(WM Company)(Standard & Poor's Corp.)(Brief Article)
March 22, 2004... Performance measurer The WM Company has linked up with Standard & Poor's to provide UK pension schemes with information on fund performance and investment strategies. The service will be launched in May and aims to assess the major risk...

News: In brief - MoM approach pays off for SEI Investments.(manager of managers)(Brief Article)
March 22, 2004... SEI Investments, the multi-management house, has picked up a total of GBP1bn of institutional assets under management since its UK launch three years ago. The firm attributes growth to link-ups with investment consultants Barnett...

News: In brief - ZAO acquires Russian non-state pension fund.(ZAO Raiffeisenbank)(Brief Article)
March 22, 2004... ZAO Raiffeisenbank, a major Austrian financial institution, has acquired the full ownership of a Russian non-state pension fund. The Austrian bank bought Dobroe Delo, which will allow ZAO to offer various third pillar pension schemes to...

News: Japan fund strategies hinder growth.(Brief Article)
March 22, 2004... Limited hedge fund investment strategies are leaving Japanese pension funds open to further falls in funding levels, according to research by the Columbia Business School. Hedge fund providers now regard Japan as the region of growth for...

News: Majedie takes two clients from MLIM.(Merrill Lynch Investment Managers)(Brief Article)
March 22, 2004... Founders of Majedie Asset Management have snatched two clients from Merrill Lynch Investment Managers' (MLIM) alpha team, where they built up their reputation as fund managers. The boutique firm, which has attracted GBP275m (e407m) in...

News: InterContinental awards oe100m to Russell.(Frank Russell, InterContinental Hotels Investment Fund)(Brief Article)
March 22, 2004... Frank Russell has been hired by the trustees of the InterContinental Hotels Investment Fund for a GBP100m (e148m) multi-manager mandate. The assets will be invested in a selection of Russell's multi-manager funds, including the UK,...

Cmment and Analysis: Derivatives: a risk too far for pension funds?
March 22, 2004... Major losses incurred by institutional investors stopped being news after years of disappointing equity returns, but losses from "risky trading" are sending nervous waves through the industry. It seems almost acceptable for investors to...

News: Airbus opts for Invesco.(Invesco MIM Plc)(Airbus Deutschland Germany)(Brief Article)
March 22, 2004... Invesco has beaten off competition from Deutsche Bank, Commerzbank and HypoVereinsbank to manage a radical early retirement pension scheme for Airbus Germany. The scheme supplements existing conventional pensions and is based on overtime...

News: Fondapi invites applications for mandates worth e56m.(Brief Article)
March 22, 2004... Italy's national pension fund for workers in small and medium-sized companies, Fondapi, has announced that it is searching for managers for e56m worth of pension assets. The fund has decided to split this amount into three different...

News: Baillie Gifford, Merrill and Schroders dropped by USS.(Universities Superannuation Scheme)(Merrill Lynch Investment Managers)(Brief Article)
March 22, 2004... The GBP19bn (e28bn) Universities Superannuation Scheme (USS) has appointed Wellington Management, Goldman Sachs Asset Management (GSAM), and Legal & General Investment Management (LGIM) to run GBP3.8bn in mandates. As part of an investment...

News: Bucks in search of specialist.(Buckinghamshire County Council)(Brief Article)
March 22, 2004... The GBP720m (e1bn) Buckinghamshire County Council Superannuation Fund is seeking a specialist UK equity investment manager for a new GBP79m mandate. The future appointment is part of the fund's move from balanced to specialist management....

News: In brief - OPERS gives thumbs-down to Disney board.(Ohio Public Employees' Retirement System)(Walt Disney Corp.)(Brief Article)
March 22, 2004... Over 40 per cent of shareholders of The Walt Disney Corporation withheld their votes for re-electing Michael Eisner as CEO and chairman of the company's board. Two of the major US pension schemes - the California Public Employees'...

News: In brief - EFA sees funds under admin grow by 6.48%.(European Fund Administration)( administration )(Brief Article)
March 22, 2004... European Fund Administration (EFA) has seen its sub-funds under administration grow by 6.48 per cent last year despite a fall of 3.8 per cent for the Luxembourg region as a whole. EFA attributes its growth to a business development strategy...

News: UK pensions move into bonds after 2003 rally.
March 22, 2004... UK pension funds took advantage of the 2003 rally in equities to shift more of their portfolio into bonds, according to the latest annual survey from the consultancy The WM Company. The equity segment of a pension fund was up slightly at 67...

News: Eton denies 'gambling' accusation.(Eton College)(Brief Article)
March 22, 2004... Eton, the UK's most famous public school, has denied that the GBP4.2m (e6.2m) losses suffered by its GBP160m investment in 2002, were a consequence of "gambling" on the derivatives market. The school argued instead that the losses had...

News: RBS shift to specialism sees managers sacked.(Royal Bank of Scotland)(Brief Article)
March 22, 2004... The GBP12bn Royal Bank of Scotland (RBS) pension fund's switch from balanced to specialist management has seen Gartmore Investment Management and Newton Investment Management lose a significant chunk of assets. Specific amounts remain...

News: Gartmore announces oe120m win.(Gartmore Investment Management Ltd.)(Brief Article)
March 22, 2004... Gartmore Investment Management has won a GBP120m (e177m) specialist mandate following the launch of its new global core-satellite strategy. The strategy is run by Gartmore's global equities team and is supported by the company's specialist...

News: Trema auditing tool 'stops' illegal late trading and market timing.(Brief Article)
March 22, 2004... Financial software provider Trema has developed an auditing tool designed to prevent market timing and other improper trading practices. The firm claims that its Net Asset Value (NAV) module is the industry's first solution for the...

News: RSPCA puts oe68m into Threadneedle portfolio.(Royal Society for the Prevention of Cruelty to Animals)(Threadneedle Asset Management)(Brief Article)
March 22, 2004... Threadneedle Asset Management has picked up a GBP68m (e100m) mandate with a UK charity's pension scheme. The Royal Society for the Prevention of Cruelty to Animals (RSPCA) has selected Threadneedle to run a balanced mandate using the fund...

News: UK charities up allocation to alternative investments.
March 22, 2004... Investment in alternative asset classes by UK charities increased more than three-fold in the past year, according to research by JPMorgan Fleming Asset Management. In its third annual charity investment survey, the investment house found...

News: Three back SEI for multi-management.(Brief Article)
March 22, 2004... SEI has won three multi-manager mandates worth GBP26m (e38m) from different distribution channels. The largest is a GBP17.5m global equity mandate from Printpack Pension Scheme, a US flexible packaging firm. David Kenny, chairman of...

News: Open-ended Asian funds from Atlantis.(Brief Article)
March 22, 2004... Atlantis Investment Management has launched three open-ended Asian funds under the Atlantis International Umbrella Fund (AIUF). The AIUF is a Dublin-listed unit trust, established as a Ucits III and recognised by the UK's Financial Service...

News: In brief - Ohio Police and Fire seeking actuarial consulting services.(Brief Article)
March 22, 2004... The $9bn Ohio Police & Fire Pension Fund is soliciting proposals from qualified firms to provide actuarial consulting services. The request for proposal (RFP) was released on March 1 and responses have to be returned to the Ohio pension...

News: In brief - Multi-manager investment up 150 per cent last year.(Brief Article)
March 22, 2004... UK institutional assets under management increased by almost GBP1bn (11.4bn) in 2003, according to the Association for Institutional Multi-Manager Investing (AIMMI).This represents 59 new institutional client relationships. Investment in...

News: In brief - Fortis picks SimCorp to run majority of its $25bn assets.(SimCorp Dimension )(Brief Article)
March 22, 2004... The second largest insurance company in the Netherlands has selected SimCorp Dimension to handle its front, middle and back-office operations. Fortis ASR, which is both an insurance company and institutional investor, will use SimCorp to...

News: In brief - Exchange-traded funds enjoy bumper results in 2003.(Brief Article)
March 22, 2004... Exchange-traded funds (ETFs) experienced significant growth last year in terms of assets under management, trading volumes and the number of users, according to research by Morgan Stanley. As of February 27 2004, there were 297 ETFs with...

Interview: Frank Goasguen, BNP Paribas - Taking a cool look at global markets.(BNP Paribas Asset Management)(Interview)
March 22, 2004... Frank Goasguen, global head of institutional business at BNP Paribas Asset Management (BNP PAM), has much to contemplate, having recently returned from three years in Japan, where he had been head of client relationships for the French fund...

People News: Vroegrop joins State Street Dutch sales.(Brief Article)
March 22, 2004... State Street Corporation has appointed Simone Vroegrop to its Netherlands sales team. Prior to joining State Street, Mr Vroegrop served for three years as relationship manager for KAS Bank with responsibility for the firm's Dutch...

People News: Merrill Lynch tempts Elliot from Lazards.(Brief Article)
March 22, 2004... Merrill Lynch Investment Managers (MLIM) has poached Mark Elliot from Lazards for its Financial Institutions Group. Mr Elliot, who was national sales manager and director at Lazards, will be working on the sales development team with...

People News: BNY hires Franklin for European liason.(Brief Article)
March 22, 2004... The Bank of New York (BNY) has appointed Yvonne Franklin as client executive for consultant relations in Europe. Reporting to Benjie Fraser, managing director of European pension funds, this is a new role aimed at developing and deepening...

People News: Knez to run BGI fixed income research.(Brief Article)
March 22, 2004... Barclays Global Investors (BGI) has promoted Peter Knez to chief investment officer for global fixed income. Mr Knez joined the firm as managing director and head of US fixed income research in February 2003. In his new position, he...

People News: Isaac and Grant are Axa choice for bonds.(Brief Article)
March 22, 2004... Axa Investment Managers has bolstered its fixed income team by appointing Gareth Isaac and Jamie Grant as fund managers. Based in London, both managers will report to Denis Gould, UK head of fixed income. Mr Isaac, previously fixed...

Portfolio: Asset Allocation - Europe - Majedie UK expertise wins Rixon over.(Majedie Asset Management)(Frith Rixon)
March 22, 2004... Majedie Asset Management (MAM) has won GBP275m in mandates in its first year after its four founding members left Merrill Lynch Investment Management (MLIM) to set up the boutique. The company's latest triumph is a GBP20m allocation to its...

Portfolio: Asset Allocation - Americas - BNY index assets continue growing.(Bank of New York)
March 22, 2004... The Bank of New York's (BNY) indexing business continues to benefit from the bank's strength as a custodian and its leading position in the American Depositary Receipt (ADR) market. A recent award of a $2bn S&P 500 index option by the New...

Portfolio: Asset Allocation - Asia-Pacific - Telstra goes down hedge fund path.
March 22, 2004... Hedge funds are winning business in Australia as they fulfil their promise to deliver returns where mainstream active equity funds have struggled, and lost ground to index managers. The A$7.4bn (e4.5bn) Telstra Super fund is the latest to...

Portfolio: Market Analysis - View from Europe - High time investors paid attention to risk and return.
March 22, 2004... After the market bottomed in March last year, one of the more successful strategies for European equity investors was to buy companies with weak balance sheets and cash flows, and stay away from the market's more defensive areas. With the...

Portfolio: Market Analysis - View from the Americas - Weaker dollar and spectre of inflation hangs in the air.(Brief Article)
March 22, 2004... We have pushed back our forecast of the first Federal Reserve interest rate hike to March 2005. Although we are relatively sanguine about economic growth in 2004, a potential concern for 2005 is a run on the dollar. The Chinese economy is...

Portfolio: Market Analysis - View from Asia-Pacific - Wage rises offer hope that Japan will start spending.(Brief Article)
March 22, 2004... Japan is in the grip of the US-dominated world trade cycle. In the past few global upswings, such export-led growth has fed through into the domestic economy through employment and investment, only to come to an abrupt end - for example, the...

Mandate Research: Foreign exchange - Currency management - Money grabbing.
March 22, 2004... Currency markets, as a whole, are immune to bull and bear trends. While individual currencies may rise and fall, their movements are inevitably counterbalanced by an opposite move in another currency. However, the difficulty of prospecting...

Mandate Research: Foreign exchange - Forecasting - Predicting the rise and fall.
March 22, 2004... The first rule of forecasting foreign exchange rates is: don't forecast foreign exchange rates. There is plenty of evidence to suggest that the market is one of the most efficient in the world and not one that offers many exploitable...

Mandate Research: Russia - Pension funds - A steep learning curve.
March 22, 2004... At the beginning of 2002, the Russian government embarked on an overhaul of its pension system to bring it up to speed with more developed nations, with reforms scheduled to come into force this year. However, the country's retirement...

Mandate Research: Value at Risk - Analysis - New tools to tackle allocation.
March 22, 2004... Pension funds have had to learn the hard way the risks of not aligning their assets with their liabilities, and asset allocation is now at the top of their investment agenda. A crucial concept in realising this goal is that of Value at Risk...