Alcatel Business taps Newton to run multinational brief
LONDON - Alcatel Business Systems Ltd. Pension Fund hired Newton Fund Managers to run a L105 million ($152 million) multinational equity portfolio for its L210 million plan, said Colin McNaughton, pensions manager. Newton replaces Merrill Lynch Investment Managers, which ran the money in a balanced portfolio. Merrill Lynch was terminated because the plan changed its investment strategy to include multinational stocks, Mr. McNaughton said. Schroder continues to manage a L105 million U.K. government and corporate bond portfolio for the fund.
Bacon & Woodrow advised.
keeps Mercer as consultant
LIVERPOOL, England - Universities Superannuation Scheme Ltd. trustees reappointed William M. Mercer as actuarial and investment consultant for four years, following a review that included pitches from rivals Watson Wyatt Worldwide and Hymans Robertson.
David Chynoweth, chief executive officer for the L20 billion ($28.9 billion) fund, said fund officials review professional service providers on a regular basis. No other service providers were under review and no changes to the investment strategy are planned, he added.
Irish fund plans
third consultant search
DUBLIN - Ireland's National Pensions Reserve Fund plans to search in late June for a consultant to assist in investment management research, said Deborah Reidy, the fund's head of investment manager selection.
The e7 billion ($6.25 billion) plan hired William M. Mercer as an investment strategy consultant and also expects to hire another consultant to advise on hiring a global custodian, said Ms. Reidy. The fund has two finalists. Paul Sullivan, director for risk and financial management for the fund, could not be reached for comment by press time.
Mercer has until June 15 to draw up proposals on the investment strategy and asset allocation for the fund. Manager searches are likely to result, but not until late September or early October, added Ms. Reidy.
South African exchange
to offer index series
JOHANNESBURG, South Africa - The JSE Securities Exchange, South Africa's only licensed stock exchange, reached an agreement with FTSE to provide internationally accepted index products for the South African and African markets. The firms will develop a significantly expanded index series to be named the FTSE/JSE Africa Series.
All existing JSE equity and derivative indexes will be reviewed and brought in line with international investment standards. This will include implementing free-float, total-return indexes, the FTSE Global Classification System, and an expanded range of benchmark and tradable index products. The review process should be done by year's end.
LIFFE adds 25 stocks
to universal futures list
LONDON - The London International Financial Futures and Options Exchange added 25 stocks to its list of 40 universal futures., exchange officials said in a release. These futures have not been allowed in the United States, but new legislation allows institutional investors to start trading Aug. 21.
The new universal stock sectors include automobiles, media and retailers. The stocks listed will include DaimlerChrysler AG, AOL Time Warner Inc. and Wal-Mart Stores Inc.
FTSE, Xinhua joint venture
debuts China 25 index
BEIJING - FTSE/Xinhua Index Ltd., a joint venture between FTSE and Xinhua Financial Network, launched the FTSE/Xinhua China 25 index, a capped tradable index featuring the largest, most liquid Chinese equities available to international investors. The index is designed to be used by fund managers and investment banks to create index-based investment products, such as index-linked funds, derivatives and exchange-traded funds, for overseas investors who want to invest in China.
An exchange-traded fund based on the new index will list on the New York Stock Exchange, subject to SEC approval.