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— Andreas Utermann, RCM CIO

RCM CIO Andreas Utermann tells Henry Smith why he favours riskier assets for long-term liabilities, about the “Grassroots” network, and his disappointment at the take-up of 130/30.

Pension funds with long-term liabilities should not dismiss index-benchmarked equity investing as yesterday’s news. According to Andreas Utermann, global CIO of RCM, the $168bn (€109bn) active equity arm of Allianz Global Investors, the promotion of outcome-oriented investment products as a universal funding panacea, fails to recognise that younger pension schemes might be better advised to have a high weighting in equities.

— Gus Sauter, Vanguard Investments

Vanguard CIO Gus Sauter tells Henry Smith why he is cautiously optimistic for the global economy, and explains his scepticism towards fundamental indices.

In the asset management industry, portfolio diversification is widely regarded as the only “free lunch” in town. But according to Gus Sauter, CIO of Vanguard Investments, ill-fated structured products came to be considered by many investors as another free lunch.

The innovation in the securitisation business which spawned complex leveraged structures such as collateralized debt obligations and CDO squareds and cubeds, was driven by the belief that the slicing and dicing and parceling out of risk would serve to lessen the exposure of a single investor to a high risk.

— José Barréiro, Banco Bilbao Vizcaya Argentaria

After spending a year restructuring the business, BBVA’s head of global wholesale banking and asset management is quietly confident about its future. Nat Mankelow reports.

Few investment bankers, whether in Europe or the US, are looking forward to the next 12 months. A mix of widening credit spreads, little deal flow and the actions of Société Générale trader Jérôme Kerviel, have already made for an unsettling January and the ‘R’ word is been mentioned with increasing regularity.

As 2008 approaches, HSBC’s global head of institutional sales tells Nat Mankelow of her plans for the future in emerging Europe, Asia and in Australia’s pensions market.

— Klaus Jäntti

Scandinavia’s most venerable hedge fund boutique is reviewing its distribution strategy. But is the ship setting sail just as the waters are getting choppy? Martin Steward reports.

Tucked above a chic boutique in Norrmalmstorg, Brummer & Partners finds itself at the heart of “Stockholm’s Mayfair”, among up-market hotels, shops and restaurants, hedge fund managers and private equity partnerships.

RZB’s Oxford-educated head of investment banking, Patrick Butler, has turned his back on his native UK in order to be at the forefront of the action in Austria as history looks set to unfold in Central and Eastern Europe. Nat Mankelow reports.

Given his position at the centre of a rapidly developing and expanding financial marketplace in Central and Eastern Europe (CEE), Patrick Butler is a refreshingly calm and measured senior banker.

— Christian Dargnat, CIO BNP Paribas Asset Management

BNP Paribas Asset Management’s obsession with being one step ahead of the competition has seen a reshuffle of its capabilities in order to combine expertise. CIO Christian Dargnat speaks to Henry Smith about the revitalised firm.

Christian Dargnat is a man who conveys a sense of mission. “We are obsessed by the need to be permanently ahead of our competitors,” he says. Listening to him describe what he has done since taking over last September from Philippe Lespinard as chief investment officer of BNP Paribas Asset Management (BNPPAM), it seems he has played a leading role in the recent restructuring of the firm.

The strategies pursued by Sinopia are underpinned by what its CIO Pierre Séquier refers to as the quant manager’s ‘adherence to the rules’. But, he insists, the firm is not without flexibility. Nat Mankelow reports.

Pierre Séquier, global chief investment officer at Sinopia, the quantitative asset management business of the HSBC group, is ‘quants’ through and through.

Like a number of senior investment executives resident within Paris-based fund houses, Mr Séquier hails from the classic ingénieur background, beginning his career in 1990 as a financial engineer at HSBC France, before joining Sinopia in 1994 as its global bond manager.

— Eoin Murray

It’s time for funds of funds to be upfront about their performance, believes Omam’s chief investment officer Eoin Murray, who also claims that the thing that distinguishes his firm from others is consistency. Henry Smith reports.

As increasing institutional investment in funds of hedge funds exerts downward pressure on performance, it is encumbent on the managers of these popular vehicles to manage the return expectations of their subscribers, according to Eoin Murray, chief investment officer at Old Mutual Asset Managers (Omam) UK.

State Street Global Advisors has made a name for itself as a beta provider, but now it is growing its alpha offering, which CIO Richard Lacaille believes can rival any other firm in Europe. Paula Garrido reports.

The changing nature of institutional asset management driven by the separation of alpha and beta returns has led some of the world’s asset management firms to rethink the way they run their businesses and promote their products.

— Gray: we are seeing a transition from beta risk towards alpha risk

New CIO of Hermes Pensions Management insists the firm originally set up to manage BT’s pension assets is ready to grow its external client base. He speaks to Paula Garrido on its future plans.

With more than £65bn (€98.5bn) of assets under management, Hermes Pensions Management enjoys a privileged position within the UK institutional asset management industry. The company is not only one of the country’s largest fund managers but its owner and main client, the BT pension scheme, is also the UK’s largest pension fund.

CalPERS’ new CIO, Russell Read, is relishing an ‘intriguing, pure investment position’ and is looking to adapt their portfolio for a changing market to include natural resources, commodities, healthcare and infrastructure. Paula Garrido reports.

AIGGIG is offering a range of products to external clients to increase AUM. However, as head of US fixed income Richard Mercante explains, clients would not be exposed to anything the firm wouldn’t do for itself. Paula Garrido reports.

Insight CIO Abdallah Nauphal was prophetic in his assertion that the asset management industry would undergo significant changes and was largely behind the firm’s push towards a liability-based,solution-driven approach. He talks to Paula Garrido.

While attention is focused on the anticipated merger between Caisse d’Epargne and Banque Populaire, Veronique Leroux, CIO of Ixis AM, is concentrating on targeting assets in Europe and capitalising on CDOs. Henry Smith reports.

JPMorgan’s John Donohue is bringing the fixed income specialisation from the US office to London in order to create ‘centres of excellence’. However, he will have to educate investors in the ways of risk-taking. Henry Smith reports.

As head of investments at the post-merger F&C, Fernando Ribeiro hopes to motivate and empower his professionals to make their own decisions by introducing a more defined management structure. He talks to Paula Garrido.

Kevin Cronin, Putnam Investments’ CIO, is currently defensive from an interest rate and credit standpoint but his five-pronged Boston-based team is looking to develop new products and strategies for investors across the world, writes Paula Garrido.

After months of speculation, President Bush’s administration finally announced that Ben Bernanke would takeover as chairman of the US Federal Reserve once Alan Greenspan retires in January.

Philippe Lespinard, BNP PAM’s CIO, wants to make a profitable assault on the UK bond market by finding a local partner. Similarly, he is seeking on-the-ground expertise for the firm’s ventures into US, Asia and Russia, reports Henry Smith.

BNP Paribas Asset Management (BNP PAM) is not losing sleep over its recent unsuccessful bid to buy Deutsche Asset Management’s bond business.

— Chris Condon

Why has one of world’s biggest multi-managers moved 15 per cent of its assets away from some well-known players? CIO Chris Condon tells Adam Courtenay about his selection process.

Super-sized mandates are not normally associated with Australian asset managers – a population of 20m simply cannot support the kind of scale which attracts global attention.

Ayaz Ebrahim believes there are three keys to stock-picking in Asia – throwing away the benchmark, local knowledge. . .and a degree of scepticism. He talks to Paula Garrido.

With markets operating in a low nominal return mode, trying to outperform benchmarks doesn’t seem to be the most attractive strategy for investors seeking absolute returns. According to Ayaz Ebrahim, chief investment officer of Asian-Pacific equities at HSBC Investments, this is particularly true in Asia where inefficient markets makes it possible for a stock picker to find hidden gems to invest in.

JPMorgan Asset Management invests in emerging markets in good and bad times. CIO Richard Titherington tells Paula Garrido that a country-specific focus is the best approach.

Three successive years of good performance in emerging market equities has served to attract a lot of new investors to a traditionally volatile asset class. While the consensus view is that future returns are likely to be more modest, JPMorgan Asset Management (JPMAM) maintains that there is still good value to be had from what it calls an evolving asset class.

ABN Amro’s fixed income chief Paul Abberley tells Paula Garrido why the value of local research in a multitude of European cities doesn’t amount to very much.

Paul Abberley, chief investment officer, fixed income, at ABN Amro Asset Management (AAAM) knows the bond markets like the back of his hand. A fixed income portfolio manager by trade, Mr Abberley is now responsible for the major restructuring of the fixed income division of AAAM, a company he joined in 2000 after 14 years at Lombard Odier.

Bruno Crastes, chief investment officer at Crédit Agricole Asset Management, tells Henry Smith about his firm’s ability to create alpha.
Reclining cross-legged in his London office, sporting a casual, open-necked shirt and golden tan, Bruno Crastes positively bristles with confidence and self-belief. Charged with winning global fixed income and tactical asset allocation (TAA) mandates from pension funds in the UK, Ireland and the Channel Islands, the chief investment officer of Crédit Agricole Asset Management’s (CAAM) UK office is not slow to sing the praises of his firm’s products and performance track record.

Robert Fernholz, founder and CIO of Intech, tells Henry Smith of his unique volatility capitalising investment process and his company’s plans for a global equity product.

Janus Capital Group, the Denver-based growth house, is still struggling to recover from a dot.com crash which caused assets under management (AUM) to plummet from $325bn (e248) to less than $140bn in the space of five years.

Sarah Arkle, CIO of Threadneedle Investments, tells Simon Hildrey of her firm’s plans to seek mandates from institutional clients in Continental Europe and its expanding product range.

Even in the first decade of the 21st century, female fund managers are a rare breed. Rarer still are female chief investment officers (CIOs).

Tony Broccardo, chief investment officer of the newly formed F&C Asset Management, tells Henry Smith of the firm’s plans for pan-European and Asia-Pacific domination.

F&C Asset Management has set its sights on becoming a leading manager of global tactical asset allocation (TAA) mandates in Europe.

Following a headline-grabbing merger with Isis, which more than doubled total assets under management to €170.1bn and turned F&C into a top 10 manager of European pension assets, Tony Broccardo, chief investment officer, is confident of the firm’s ability to win a sizeable share of the growing TAA market.

Despite the prospect of new ownership, James Bevan, chief investment officer for Abbey and its life companies, has confidence in the wisdom of his sophisticated outsourcing methods. Interview by Yuri Bender.

— Alan Brown

Alan Brown, global chief investment officer and vice-chairman of State Street Global Advisors, explains why the industry must end its obsession with strategic benchmarks and design a new breed of dynamic products. Interview by Yuri Bender.