Stichting Pensioenfonds ABP, Heerlen, Netherlands, acquired a one-third stake in State Street Global Alliance, an asset management incubator owned by State Street Global Advisors. The private equity investment should help the $143.3 billion plan increase its private equity portfolio to 4% of assets under management by 2003, from 1%. The new subsidiary aids innovative startup asset management operations that complement SSgAs existing investment strategies, according to State Street Global Alliance chairman John Snow.
Under terms of the deal, ABP will provide seed capital and offer mandates to the subsidiarys four companies: Rexiter Capital Management; Advanced Investment Technology; Pallada Asset Management; and The Tuckerman Group. ABPs in-house portfolio managers are working with these firms on their new mandates, but there is no guarantee that asset management firms joining the subsidiary in the future automatically will be given mandates by ABP, said Jean Frijns, the plans chief investment officer.
Pallada will be appointed to a Russian equity mandate, and AIT will manage a long-short U.S. equity portfolio. ABP likely will appoint Rexiter to a small and mid-sized emerging-markets portfolio, while Tuckerman will be responsible for a specialist real estate portfolio.
Mr. Frijns refused to say how much ABP would provide in terms of seed capital or the size of the portfolios.