BROMLEY, England, -- Tate & Lyle Group PLC Pension Scheme hired Foreign & Colonial Management and Mercury Asset Management to run two new fixed-income portfolios in U.K. index-linked and corporate bonds.
Foreign & Colonial will manage a 170 million ($257 million) mandate, and Mercury will run 110 million. Each portfolio will have similar weightings, but Mercury also can invest in corporate debt, said Steve Amor, group pensions manager for the 740 million plan.
Fund trustees created the portfolios after deciding to liquidate a 280 million holding of U.K. long-dated index-linked gilts. "We felt we could add more value with a broader based portfolio," said Mr. Amor.
Median returns in for Canadians
TORONTO -- The median Canadian balanced pension fund had a return of 17.1%for the year ended March 31, compared with 1.3% for the previous year and 23% two years ago, according to a report on Canadian pension fund performance from SEI Investments.
Active equity managers in Canada had a median return of 31.3%for the year ended March 31, compared with a return of 45.5% for the Toronto Stock Exchange 300 index for the same period. This compared with a return of -11.1% for equity managers for 1999, slightly better than the TSE 300 index return of -11.3%.
The median active bond manager's return in Canada matched the Scotia Capital Markets Universe Bond index, with a return of 1.3% for the year ended March 31; compared with a median bond managers' return of 7.1% for the same period a year earlier, which slightly outpaced the index return of 7%
The median foreign equity return of 17.6% for Canadian pension funds for the year ended March 31 exceeded the MSCI World index return of 17%. This compares with a median return of 13.4% for the same period last year, which underperformed the index return of 19.8%..
Guam Retirement taps
Metropolitan West
MAITE, Guam -- The Government of Guam Retirement Fund will hire Metropolitan West to manage $80 million to $100 million in domestic large-cap value, pending contract negotiations, said John Rios, executive director.
Rentokil Initial plan drops Phillips & Drew
LONDON -- The 758 million ($1.14 billion) Rentokil Initial pension plan, London, terminated Phillips & Drew for performance reasons, said Pam Hazelton, assistant to the general pensions manager.
The portfolio will be shifted to existing managers Abbey National, Barclays Global Investors and Mercury Asset.
Eurex to trade options, futures of Nemax 50 index
LONDON -- Eurex, the European derivatives exchange, beginning June 19 will trade options and futures of the Nemax 50 index, which is an index of the top 50 blue-chip stocks listed on the Neuer Markt. The launch expands the selection of Neuer Markt derivatives beyond the existing equity options on Consors, EM TV, Intershop, Mobilcom and T-Online.
