LONDON -- Global Asset Management is expanding offerings to the U.K. pension and charity market, launching an umbrella structure with 13 specialist asset classes.
Last summer, GAM launched the GAM Institutional Exempt Trust, a balanced fund that has gathered 45 million pounds ($75 million) in U.K. tax-exempt assets.
Now the firm is offering specialist funds to the U.K. institutional marketplace through the GAM Exempt Trust, enabling clients to set their own asset allocations. Each fund mirrors an existing GAM fund that is available either to the U.K. retail or U.S. pension market.
The funds cover 12 geographic areas plus a balanced portfolio that will roughly track the median allocation of the Combined Actuarial Performance Services Ltd. benchmark. Geographic areas range from global to Latin America.
The funds primarily will be invested in equities, although up to 25% of each portfolio can be invested in cash equivalents and bonds, depending on market conditions. Weekly and monthly valuations and transfers will be permitted.
The unauthorized unit trusts will be eligible to be converted into "pension fund pooled vehicles" once European regulators grant tax relief for the U.K.-approved pooled funds. PFPVs would enable European multinational pension clients to combine mandates from different subsidiaries, obtaining lower marginal fees, said David Duncan, director.
The pooled vehicles also would enable multinational companies to exert control over asset allocation of pension funds of subsidiaries.
InterSec median outperforms Salomon index
The median manager in the global fixed-income universe of InterSec Research beat the Salomon World Government Bond index by 60 basis points in the first quarter. For the quarter ended March 31, InterSec's median manager posted a 1.4% gain, vs. a 0.8% rise by Salomon's WGBI.
Factors contributing to managers' success included their overweighted position to the U.S. dollar and significant underweight to the yen and the Japanese bond market, generally, InterSec reported. In U.S. dollar terms, the Japan component of the index had a -1.7% return for the quarter, vs. a 1.8% rise for the index's U.S. component.
Alliance, Eptaconsors team up for funds
NEW YORK -- Alliance Capital Management LP has entered into a money management distribution arrangement with Italy's Eptaconsors Group.
Eptaconsors will distribute Alliance Capital's family of offshore mutual funds through its money management unit, Eptafund, and through the six Italian banks owning the group.
Alliance Capital and Eptafund together will develop new investment vehicles for Italian retail and institutional clients and for the global market. Alliance will distribute products worldwide, and will manage all of Eptafund's non-Italian assets.