hires INVESCO for
global, U.K. bonds
LONDON -- Hewlett-Packard Ltd. Retirement Benefits Plan trustees terminated a passive U.K. equity portfolio and a passive U.K. bond portfolio managed by Phillips & Drew, and appointed PIMCO to run a global fixed-income portfolio and a U.K. bond portfolio. Andrew Webb, pensions manager at the L500 million ($714 million) plan, would not provide portfolio sizes.
The plan dropped Phillips & Drew in part because trustees decided to use preferred provider managers that are approved by the plan sponsor and offer lower fees (Pensions & Investments, Nov. 27). Also, "Phillips & Drew's historic underperformance was a contributory factor," said Mr. Webb.
Phillips & Drew Director Paul Yates said he was disappointed about the loss of the mandate. "We have produced an average performance for them over 10 years. We have outperformed the benchmark they set us, albeit by a smaller margin than required," he said.
Incumbent Capital International manages global equities and will be retained. Incumbent Deutsche Asset Management also will be retained because none of the preferred managers offers a U.K. equity strategy.
Hymans Robertson advised.
Post Office plan seeks
private equity manager
LONDON -- The Post Office Pension Plan is conducting an invitation-only search for a private equity fund-of-funds manager to run L100 million ($142 million), said Gerry Degaute, director of finance for Post Office Pension Trustees Ltd. The L18 billion plan expects to select a manager by March. Mr. Degaute said the plan chose the fund-of-funds approach to get global exposure and diversification.
Royal & Sun Alliance mulls
LONDON -- Royal & Sun Alliance Insurance Group PLC is considering buying a money management firm to boost assets under management and enhance the presence of its asset management unit, according to Karen Donhue, external communications manager for Royal & Sun. "We have a whole range of options, which could include buying something or making a strategic link with (a money manager)," said Ms. Donhue. Royal & Sun has been looking for ways to boost the third-party and retail business at the Royal & Sun Alliance Investments unit. "We're considering anything that would increase the size of assets under management (which now stand at L60 billion), particularly on the retail side and with third-party funds."
ZURICH -- UBS acquired Fondvest in a move designed to improve the Swiss bank's distribution to institutional investors. Terms were not disclosed. Zurich-based Fondvest offers institutional investors access to a range of screened funds from about 60 domestic and international money managers.
Fondvest will remain independent; it will become part of the UBS Asset Management division, which includes Global Asset Management, UBS Brinson and Phillips & Drew.
moves to Avocet
LONDON -- Garreth Hodgson was appointed trading analyst at boutique hedge fund group Avocet Capital Management. He joins Clare Flynn, Avocet founder and managing director, who was a technology specialist at Deutsche Asset Management. Mr. Hodgson was a hedge fund specialist at Goldman Sachs.
Bacon & Woodrow
LONDON -- Anthony Ashton was named head of the U.K. investment consulting practice at actuaries Bacon & Woodrow, a new position. He was head of the firm's international investment practice. The appointment follows the firm's merger with Hewitt Associates. Mr. Ashton will report to Nick Fitzpatrick, Bacon & Woodrow partner and head of the investment practice, who is leading the global integration of the two firms' investment consulting practices.
Thompson to head
U.K.'s pension association
LONDON -- Peter Thompson, worldwide partner at William M. Mercer, was named chairman of the National Association of Pension Funds, a U.K. industry association. He will replace incumbent Alan Pickering, whose two-year term ends in May. Mr. Thompson was selected over Geof Pearson, current NAPF vice chairman and pensions manager for the J Sainsbury PLC pension fund, to the position.
Tomoika named CIO
for Morley in Japan
TOKYO -- Hidehiro Tomoika was named chief investment officer at Morley Fund Management (Japan) Ltd., a new position. Mr. Tomoika was director and head of research at INVESCO Asset Management in Tokyo, where Akira Hiramine, chief investment officer, has taken over his responsibilities. INVESCO plans to add a new fund manager to the team in Tokyo, said spokeswoman Nula Ryan.
Deutsche Asset taps
Sorab for position
LONDON -- Adam Sorab was named director of distribution for the absolute-return group for Europe at Deutsche Asset Management. He will be responsible for distribution of all of Deutsche's absolute-return products throughout Europe, said Stacey Doyle, Deutsche spokeswoman. He will be based in London. Mr. Sorab was marketing director for the leveraged funds group at Credit Suisse First Boston. Penn Pendleton, a spokesman for CSFB, said Mr. Sorab will not being replaced.