United Asset Management Corp., Boston, reached agreement to acquire Rogge Global Partners in London, a global fixed-income specialist with $3.5 billion in assets under management. Terms were not disclosed.
Olaf Rogge, Rogge Global's chief executive officer, has signed a 10-year contract, while other partners have signed seven-year contracts, assuring consistency in the firm. They will have the chance to earn up to 25% of the firm's equity through phantom shares, as well as gaining other UAM options.
The acquisition will boost UAM's international assets under management to more than $16 billion. UAM, whose money management entities run more than $150 billion, has a goal of having 20% of assets under management with international units, said Julie Coyle, treasurer.
HORLEY, England - The nearly (British pounds)1.2 billion ($1.86 billion) BAA PLC Pension Scheme awarded nearly one-third of its assets to NatWest Investment Management's quantitative division, said Eric Hunt, group pensions manager.
The quant unit, which has been renamed Gartmore Quantitative Strategies, will manage the (British pounds)386 million portfolio in a consensus index fund.
Under that approach, the passively managed portfolio's asset mix mirrors the average allocation in the WM 2000 pension fund universe, which excludes the top 50 U.K. funds.
To fund the portfolio, the BAA fund is taking (British pounds)193 million each from balanced manager Fidelity Pensions Management, London, and U.K. equity manager Ivory & Sime PLC, Edinburgh. Mr. Hunt said this was no reflection on performance, just a desire to add a third manager and reduce risk for the fund.
Previously, Fidelity and Ivory & Sime managed virtually all of the fund's assets.
The move stemmed from an asset/liability study conducted by Bacon & Woodrow, London. Traditionally, the BAA fund has had a very aggressive equity posture. About 80% of assets is invested in U.K. stocks, and the fund's total equity exposure is 93% to 94%.
As a result of the change, the fund's overseas equity and fixed-income exposures will increase at the expense of U.K. equities. The final asset mix had not yet been determined.
Bacon & Woodrow conducted the manager search.
Aetna International Funds Managers and Wright Investors' Service have formed an alliance involving their Luxembourg funds businesses. Aetna will be the investment manager for, and market, Wright's EquiFund, which has 12 country-specific and regional subfunds primarily covering Europe. Pending shareholder and regulatory approval, EquiFund will be renamed Aetna Master Fund.
Wright will continue as the investment adviser for a number of its subfunds and will support distribution efforts through its network of contacts.
Wright will continue to market and manage its U.S. EquiFund.