LONDON - Chase Manhattan's global securities services division has won two Danish clients for global custody.
Lonmodtagernes Dyrtidsfond, the 38 billion Danish kronor ($6.9 billion) Danish pension fund for salaried employees based in Silkeborg, has hired Chase as global custodian for its 1.1 billion kronor ($200 million) non-Danish equities portfolio, said Soren Kolbye, finance manager.
London-based Chase was selected because of a combination of lower prices, better information and improved security of assets, according to Mr. Kolbye.
Juske Bank, Silkeborg, previously provided custody for the portfolio.
In addition, Topdanmark Insurance, a leading Danish life and general insurance company located in Ballerup, hired Chase.
Chase will provide custody for 1.1 billion kronor in U.S. equities and Eurobonds for the insurer.
Custody services previously were provided by Sydbank in Aabenraa.
Total insurance company assets are 8.3 billion kronor ($1.5 billion).
LONDON - Guidelines developed for derivatives end users in the United Kingdom might be too comprehensive to be useful.
Managing Derivatives Risk: A Code of Practice for End-Users of Derivatives, by the U.K. Futures and Options Association, offers a good theoretical framework for monitoring derivatives use, industry experts say. But given the time constraints many executives are under, and the fact many companies use derivatives only sporadically, much of the report might be overkill.
The guidelines cover six basic principles: the role of the board of directors; policies and procedures; supervision of activities; risk management organization; management of credit risk; and capacity issues and legal documentation. The code was created for voluntary use by corporate treasurers, money managers, pension fund executives and other investors. The idea is to avoid derivatives disasters.
Stephen Turner, director general of the Institutional Fund Managers Association, London, said the guidelines may be too much for intended users to digest.
"How are you going to get them to read it?" he said. Busy executives with oversight of derivatives users - the people who take the heat when something goes wrong - are not likely to read the lengthy report very thoroughly, he said. Mr. Turner said the code needs an executive summary that cuts to heart of what proper derivatives oversight involves.
Many of the people who got into trouble used derivatives sparingly, but wrongly, and the code isn't really written to that audience, he said.
Heinz Binggeli, managing director for the risk management consulting unit of Emcor, Irvington, N.Y., said the code basically follows the Group of 30 recommendations made in 1993. (Pensions & Investments, Aug. 9, 1993). He said a lot of it is applicable to dealers, and the code's guidelines are "quite demanding in terms of what end users will have to do."
Political uncertainties contributed to worldwide market declines in October, according to Morgan Stanley Capital International. The MSCI World Index fell 1.7%, while the MSCI Europe Australasia Far East Index dropped 2.8%.
Nor did emerging markets fare well: they declined 3.9%.
Year to date, the world index is up 11.8%; the EAFE is up 2.6%; and the Emerging Markets Free index is down 9%.
Among the political problems contributing to market falls last month - the debate over the U.S. budget, which threatens a default on U.S. interest payments, and Quebec's vote on secession, which was narrowly defeated Oct. 30.
There were a few strong performing markets last month. The best performers, in dollar terms, were Venezuela, 30.7%; Turkey, 9.4%; and Switzerland, 4.1%.
Foreign & Colonial Emerging Markets Ltd. has launched the Taiwanese Investment Co. SICAV aimed at institutional investors.
Foreign & Colonial officials say falling interest rates and accelerating exports make Taiwanese stocks very attractive. They forecast Taiwanese stocks could provide a 50% return over the next 12 months. Low stock prices offer the best value since the Taiwanese stock market opened to foreign investment in 1991, they maintain.
The Luxembourg-based SICAV has a minimum investment of $25,000 and aims to raise $20 million initially.
MILAN, Italy - Sedgwick Noble Lowndes opened a Milan office, prompted by the passage in August of pension reform legislation.
The operation will focus on providing pension, group life and health care services to both local and multinational companies. The office is headed by divisional director Thierry Laloux, formerly development director in the firm's Amsterdam office.
Meanwhile, Adrian Swails is joining Sedgwick Noble Lowndes, Croydon, England, as an investment consultant, a new position. Mr. Swails previously was an actuary at William M. Mercer Ltd.