CERN raises corporate, high-yield bond allocation
GENEVA - The European Organization for Nuclear Research Pension Fund is increasing its allocation to a corporate and high-yield bond portfolio managed by Merrill Lynch Investment Management, according to Christian Cuenoud, plan administrator.
The 3.5 billion Swiss franc ($2.1 billion) plan added 25 million francs to the portfolio, bringing it to 75 million francs.
It may allocate an additional 25 million francs to the portfolio early next year, depending on market conditions, he said.
Assets for the increase will come from cash.
The plan now invests 45% of total assets in European and international government bonds.
Further changes are expected in January when plan trustees meet to approve a new asset allocation; the plan might increase its equity allocation by 10 percentage points, to 50% of total assets, by investing more in U.S. stocks. Trustees were to have approved the new asset allocation in August but were delayed.
Separately, CERN hired MFS International to manage a 50 million Swiss franc active European equity portfolio. The 3.5 billion franc plan will fund the allocation from a temporary passive European equity portfolio run by UBS Asset Management, said Mr. Cuenoud, plan administrator. He would not give further details.
ICI retains J.P. Morgan as global custodian
LONDON - ICI Pension Fund, London, rehired J.P. Morgan Investor Service as global custodian following a routine review of all its service providers, said John Edgar, spokesman for the L6.8 billion ($9.8 billion) plan. He declined to give further details.
CDP Capital in pact with Korean National Pension
MONTREAL - CDP Capital, the fund manager of the C$105 billion (US$70 billion) Caisse de Depot et Placement du Quebec, Montreal, reached a cooperation and partnership agreement with the Korean National Pension Corp., Seoul, said Suzanne Brochu, Caisse spokeswoman.
CDP Advisory Services, a member of CDP Capital, will provide KNPC with technical assistance, consulting services and training for the management of its asset portfolio.
KNPC insures more than 16 million individuals and manages more than 75 trillion won (US$60 billion) in assets.
AP7 to allocate 4% to both private equity, hedge funds
STOCKHOLM - AP7 is looking to allocate 4% of total assets each to private equity and hedge funds, said Richard Grottheim, executive vice president. The 20 billion kroner (US$1.9 billion) plan's board of trustees approved the allocations, and the plan is searching for managers of managers in both asset classes. The deadline for proposals is Nov. 26.
Separately, the plan expects to announce a new alternative investment consultant by the end of the month, said Mr. Grottheim.
Belgacom's Van Impe joins Fortis AG
BRUSSELS - William Van Impe was named head of portfolio management for the insurance assets of Fortis AG Belgium, effective Nov. 1. It is a new position. He resigned as joint general manager of the 139.5 Belgian franc ($3.1 billion) Belgacom Pension Funds, Brussels. The appointment follows a decision by the Fortis Group to transfer management of group insurance assets to the insurance company from its money management arm, Fortis Investment Management, Mr. Van Impe said.
Philip Neyt, joint general manager for Belgacom, said he will take over Mr. Van Impe's responsibilities and also will be CEO for the pension plans, a new position.
Hedge funds of funds to target Canadian investors
MONTREAL - Montrusco Bolton Investments and Focus Group will offer hedge funds of funds to Montrusco Bolton's institutional and high-net-worth Canadian clients, according to a Montrusco Bolton news release. Focus Group will act as Montrusco Bolton's sole provider of offshore hedge fund advisory services. The two companies are still hammering out details of the first planned fund of funds. Additionally, Montrusco Bolton and Focus Group will launch a website, www.hedgefunds.ca, designed to be an objective clearinghouse for hedge fund information. .
NeoNet signs on with Euronext Exchange platform
STOCKHOLM - NeoNet, a real-time electronic equity trading platform for institutional investors, has connected to the Euronext Exchange platform and will offer its users consolidated direct trading access to about 80% of the total European stock market capitalization. Euronext was created following the merger of the Paris, Amsterdam and Brussels stock exchanges. NeoNet users will be able to trade on all connected exchanges through a single entry point. Trading access to Paris on the Euronext platform is available now, and trading access to the Amsterdam and Brussels stock exchanges should be available soon, according to a news release from NeoNet.
Nordea hires Northern Trust as international fund custodian
STOCKHOLM - Nordea Investment Management hired Northern Trust to provide global custody for a new international equities fund targeted to institutional investors. Northern also will provide accounting, foreign exchange services and short-term cash management.
Breedon to head investments at Legal & General Group
LONDON - Tim Breedon will replace David Rough as director of investments for Legal & General Group when Mr. Rough retires at the end of this year. Mr. Rough will take early retirement and does not plan to find another job in investment management, said Neville Walton, L&G spokesman. Mr. Breedon is managing director of indexed funds at L&G, and the firm will replace him in that post, said Mr. Walton.
Flynn is new chief of marketing at Pantheon
LONDON - Peter Flynn was named marketing director at private equity manager Pantheon Ventures, a new position. He was general manager-Europe for InvestorForce, which closed its European marketing operation in August.