Pension fund adds four managers, hires single custodian
LONDON -- London Regional Transport has adopted a core-satellite approach for its L3.5 billion ($5.6 billion) pension fund, adding four new managers and appointing a single custodian.
The fund formerly was managed in global balanced portfolios by Baring, 38%; Schroder, 38%; and Gartmore, 20%. LaSalle Investment Advisors continues to manage 4% of the fund in a real estate mandate, although that exposure will be reduced over time.
Under the restructuring, Barclays will manage 28% of the fund, or L980 million, in a global balanced index portfolio. Societe Generale Asset Management UK and Baring each will run L560 million in U.K. equities, and Gartmore will run L350 million in European (including U.K.) equities. Schroder and J.P. Morgan each will run L175 million Far East and U.S. equity portfolios, respectively. Henderson Investors will run L700 million in U.K. gilts and U.K. index-linked bonds.
The fund named Chase Manhattan Bank as sole custodian to improve control of the funds and reduce administrative costs. Previously, each manager had its own custodian.
The restructuring follows a nearly two-year assessment of asset allocation strategies after a 1997 actuarial valuation showed a major shift in the fund's liability profile with more than half the members retired, said Chris Bedford, director of pensions. As a result, bonds have been increased to 30% of assets from 25%.
William M. Mercer consulted on the investment changes.
Fiat's pension fund hires first outside managers
TURIN, Italy -- Fondo Quadri e Capi Fiat, Turin, Italy-based Fiat's 38 billion lire ($21 million) pension fund for middle management employees, made its first appointment of outside managers. Morgan Stanley Dean Witter and Banca di Roma's asset management arm, Romagest, will jointly manage the fund.
Each will manage a 19 billion lire portfolio with 40%invested in Euro-zone fixed income and the balance in a combination of global bonds and equities. The managers are currently preparing asset management studies and expect to begin managing the portfolios in October, said Roberto Vedovotto, executive director for Morgan Stanley.
The mandate represents Morgan Stanley's first foray into the Italian pension fund market.
Forstmann-Leff to subadvise Tilney fund
DUBLIN, Ireland -- Forstmann-Leff International will subadvise Tilney Investment Management's newly launched Global Fixed Investment Fund.
The fund will be marketed to both retail and institutional clients and will be run by Tilney as an open-end investment company. It will be benchmarked against the Salomon Smith Barney World Government Bond index.
Forstmann-Leff's parent company, Refco, owns 25.1%of the Tilney Group.
Watson Wyatt's Steedman makes move to Sweden
STOCKHOLM, Sweeden -- Eric Steedman, a principal in Watson Wyatt Worldwide's international consulting practice, has relocated to Stockholm as part of an expansion of the firm's Scandinavian practice.
Mr. Steedman previously handled Swedish pension and investment consulting issues from the Reigate, England, office.
Elake Fennia choosing manager for indexed international equity
HELSINKI, Finland -- Elake Fennia soon will appoint an external manager for a new indexed international equity portfolio, said Eeva Grannenfelt, head of securities for the insurance group.
Ms. Grannenfelt expects to make a decision by the end of this month from an existing short-list of potential managers.
The insurer, with E3 billion ($3.1 billion) in assets under management, is still waiting to appoint a money manager for an active international equities portfolio.
Sydney Futures Exchange offers market updates on Web
SYDNEY, Australia -- The Sydney Futures Exchange is offering updates on the Australian markets on its Web site and will discontinue publication of the Australian Market Update.
The Web site has been enhanced to offer current market data and other information that includes: snapshot data prices with a 15-minute delay; end-of-day data on all day- and night-traded futures and options; contract specifications on all SFE-traded products; as well as links to related resources, such as the Australian Financial Review.
The address of the Web site is www.sfe.com.mu.
