UTRECHT, Netherlands -- Rabobank Group, Utrecht, and DG Bank Deutsche Genossenschaftsbank AG, Frankfurt, plan to launch a joint venture in asset management once they have created a combined corporate finance and investment banking business, said Hans Ludo van Mierlo, head of external communications for Rabobank Group.
The banks announced a strategic alliance last month with the aim of building a European cooperative bank based on a network of financial groups with strong domestic franchises. The combined corporate finance and investment banking business is likely to be completed within the next six months.
The group is still considering how to merge the asset management businesses. One possibility would be for Rabobank's asset management business Robeco Group, Rotterdam, to drive the combined businesses, said Mr. Van Mierlo.
By combining the asset management activities of Robeco and DG the two groups would create a business with E135 billion ($144.4 million) in assets under management, split equally between institutional and retail business.
Robeco Group has E82 billion in assets under management, 64% of which is managed for institutions. DG has E63 billion in assets under management, of which 68% is retail funds.
Bass hires Rothschild, Legal & General
WEST BROMWICH, England -- Bass PLC pension plans replaced Phillips & Drew and INVESCO with Rothschild and Legal & General.
Rothschild will take over from Phillips & Drew a L140 million ($233.58 million) U.K. fixed-income portfolio for Bass' L1.8 billion staff plan, its asset allocation based on a tailor-made benchmark of U.K. gilts and index-linked gilts, although the manager can also invest a small proportion of the assets in non-U.K. and corporate bonds.
Rothschild also will take over from Phillips & Drew a L40 million U.K. fixed-income portfolio for Bass' L500 million executive plan, which will be managed in the same manner as the staff plan mandate.
Trustees were disappointed by Phillips & Drew's underperformance over three and five years, said Trevor Jones, director of pensions.
A Phillips & Drew spokeswoman said, "We have managed this fund for 10 years now and whilst the performance record has been affected in the last couple of years, performance is recovering. We continue to manage the U.K. equities portfolio."
Legal & General will take over from INVESCO a L200 million portfolio of passive U.S., European and Far East equities. The manager was hired because it had a wider scope of funds with greater trading flexibility, said Mr. Jones.
Gartmore sets plan to offer hedge funds
LONDON -- Gartmore Investment Management PLC plans to launch two hedge funds in early November. One will use a long/short European equity strategy and the other will be a currency overlay fund made up of sterling and other currencies, a company spokeswoman said. This is Gartmore's first concerted move into offering institutional clients alternative investment vehicles, and it comes at a time of uncertainty for the money manager as its parent company, National Westminister Bank, attempts to fight off a hostile bid from rival Bank of Scotland PLC, Edinburgh.
