Fiat Common Investment Fund, Watford, England, selected Frank Russell to manage L100 million ($165 million) in its multimanager funds, said Mel Lambert, a director of the L370 million ($611 million) fund. Assets were taken from existing balanced managers Phillips & Drew and Fleming Investment Management, which previously managed the entire fund. Mr. Lambert declined to specify how much each manager runs for the fund.
Frank Russell officials also conducted an asset allocation study, which resulted in keeping the overall equity allocation at about 75% of assets. Fund officials have slashed U.K. equities to a target of 45% from an actual investment of 58.3%. As a result, U.S. equities have been boosted to 10% from 1.6%; Japanese equities nearly doubled to 5% from 2.6%; and Pacific Basin equities increased to 3% from 1.7%.
Also, emerging markets are set at 2% of assets; previously the fund had 1% in Latin American equities only.
In addition, U.K. gilts have been boosted to 19% of total assets. Meanwhile, indexed-linked gilts have been reduced to 6% from 9.1%, and the fund's 5.6% international bond allocation has been eliminated. Another 7.6% in cash has been spread throughout the target asset mix.