SHANGHAI - A consortium including Bankers Trust, New York Life, two private equity funds of H&Q Asia Pacific and four private equity funds of HSBC Private Equity invested $50 million in a planned community in Shanghai.
So far, about 12 pension funds invested in the project through the private equity vehicles. Barry Hansen, president of Sealand Housing, the project developer, said funds investing in the project include those of US WEST, which invested in the HSBC Private Euqity 1 fund, and Caisse de Depot et Placement du Quebec, which invested through the Asia Pacific Growth Fund II. Specific allocations were not known.
The project, Shanghai Links Executive Community, is a $500 million development expected to be completed in 1999.
Foreign & Colonial restructures management
LONDON - Arnab Banerji will become chief investment officer of Foreign & Colonial Group as a result of an internal restructuring stemming from last year's buy-out of minority stakes in Foreign & Colonial Emerging Markets and the acquisition of ESN, manager of the (British pounds) 14 billion ($23 billion) Electricity Supply Pension Scheme. In total, the group manages (British pounds) 27 billion ($44 billion).
Dr. Banerji previously was CIO of F&C Emerging Markets. David Manning, now investment director in charge of ESN, will become deputy CIO. Tony Thomson, CIO at Foreign & Colonial Management, which invests (British pounds) 9 billion in developed markets, will leave the firm in the next few months but will assist with the transition.
Mercury Asset reports surge in assets
LONDON - Mercury Asset Management Group's assets under management grew to (British pounds) 89.7 billion ($146.5 billion) as of March 31, up 10.7% from (British pounds) 81 billion a year earlier. The gain was made despite the loss of (British pounds) 1.8 billion managed by Swiss subsidiary Mercury Bank, which was sold to Republic National Bank of New York (Suisse). Pre-tax profits before exceptional items during the fiscal year ended March 31 grew to (British pounds) 171.3 million from (British pounds) 140.4 million.
MAM's overseas business is picking up: It won 20 new pension mandates in Japan and now manages more than (British pounds) 1.7 billion for 62 Japanese pension clients. U.S. pension assets under management grew by more than $1 billion to $6.5 billion.
MAM also is the largest manager of British defined contribution plans. Money purchase assets under management topped (British pounds) 1 billion, on behalf of more than 200 U.K. defined contribution clients.
Citywatch Ltd. publishes yearbook
LONDON - Leading U.K. institutional investors are profiled in Citywatch Ltd.'s first yearbook.
The 602-page databook covers 209 institutions, managing an aggregate (British pounds) 1.8 trillion ($2.95 trillion) in assets.
The yearbook ranks institutions by type of business. It includes league tables for overall assets, segregated pensions, pooled pension funds, investment trusts, U.K. authorized unit trusts, charity funds and insurance funds. Rankings by asset class are included.
For example, Prudential Corp. P.L.C., is the largest overall U.K.-based manager, with (British pounds) 91 billion in assets under management. It is followed by Schroder P.L.C., at (British pounds) 88 billion, and Mercury Asset Management P.L.C. at (British pounds) 86 billion.
In addition, detailed information on each institution covered, including total assets, aggregate asset mixes, ownership and details of identifiable clients have been included. Also, U.K. pension funds' money manager mandates are listed. The type and size of each mandate is included where data were available.
Asset allocations within individual unit trust and investments trusts, and holdings within U.K. companies also are published..
Copies of the yearbook at available for (British pounds) 175 each from Citywatch, at (44-171) 929-7706; the fax number is (44-171) 929-7022.
Paul Hopkins leaves IDS International
LONDON - Paul Hopkins, CIO of London-based IDS International Inc. for more than three years, left the firm May 6 by mutual agreement.
Chairman Peter Lamaison said the firm's country allocation suffered during recent periods. "Bottom-up under Paul's tenure improved dramatically but the top-down - which has slightly greater emphasis for our clients -deteriorated." Mr. Lamaison, who had served as CIO from 1981 to 1992, has reassumed that role.
IDS International may seek a new CIO eventually but is not looking now, he said. The firm manages $8.8 billion in assets.
Mr. Hopkins said Mr. Lamaison is "more comfortable with dramatic changes in country allocation," involving a greater degree of risk and volatility. Mr. Hopkins said he prefers a more gradualist approach.
Both Mr. Hopkins and Mr. Lamaison said performance had suffered during the past two quarters. Mr. Lamaison said performance was good through 1995, but the global equity product lagged its peers more recently because of overweighting in Japan and underweighting in the United States.
The combined effect of a falling Japanese stock market and yen, and appreciation of U.S. equity market and the dollar provided "a quadruple whammy," he said.
Mr. Hopkins said he is considering setting up his own firm or building a team at an established firm. During his tenure at IDS, he said assets under management grew from $2 billion while staff tripled to 15.
In addition, Mr. Hopkins said he oversaw establishment of the firm's Hong Kong, Singapore and Tokyo offices.