Frank Russell Company has claimed top spot in FT Mandate’s listing of multi-manager firms ranked by volume of reported business won over the past 12 months. Among the mandates propelling Frank Russell to first place was a Ł100m (€162m) global equity manager of managers mandate from the UK-based InterContinental Hotels Common Investment Fund.
The assets are being invested in a selection of Russell’s funds including the UK, Continental Europe, Japan and Pacific Basin equity funds.
In addition, Russell’s Implementation team also provided transition services to carry out the trustees’ decision.
Trevor Jones, chairman of the trustees of the InterContinental Hotels and the Britvic pension plans, which also participate in the funds, said: “We chose Russell because we had the greatest confidence in the likely long-term performance from its multi-manager approach.”
Roger Whittaker, director of UK sales at Russell, said: “ These mandates are coming from a full spectrum of pension funds, from big to small and from defined benefit and defined contribution schemes. This reflects the versatility of our approach.”
Russell also scooped a Ł24m global equity multi-manager mandate from the L’Oreal UK Retirement Benefits Plan. The money, which represents 2 per cent of the scheme’s total assets, is being invested in a number of Russell’s regional multi-manager equity funds.
Catherine Lambert, chairwoman of the investment sub-committee of the L’Oreal UK pension fund, said: “ Given the dynamics of the equities market today and the rigorous time, effort and expertise needed to select and review fund managers, we decided on a manager of managers approach for a part of the equities portfolio of our pension fund.
“We undertook extensive research and believe that Russell will deliver us long-term results consistent with our investment strategy in a cost-effective way and with absolute professionalism.
Russell’s push into continental Europe was rewarded in 2004 by two multi-manager mandates from two Danish pensions – a $140m (€112m) brief from the Pensionskassernes Administration A/S (PKA) and a €80m mandate from the Finanssektorens Pensionskasse. The latter specified active Japan and emerging market equities.
Jon Baillie, managing director of institutional investment services at Russell said: “Denmark is an interesting market – there are a number of good-sized funds and the experience has been positive. They are open to new ideas, particularly multi-management.”
He said the Netherlands had been another key area where Russell’s success “shows the benefits of a local presence”.
Northern Trust Global Investments grabbed second spot in our ranking table thanks to a Ł60m multi-manager mandate from the Monarch Airlines Retirement Benefits Plan.
The equity brief which represented approximately 45 per cent of Monarch Airlines Ł130m pension fund, covers UK (30 per cent) Europe ex UK (40 per cent) Asia Pacific ex-Japan (15 per cent) and Japanese (15 per cent).
Lynne Fison, press officer for UK-based Monarch Airlines, said the pension fund trustees believed that a multi-manager approach offered the most efficient way of accessing specialist managers through a single point of contact.
Alistair Moffat, finance director at Monarch Airlines, said: “We are very impressed by Northern Trust’s due diligence and approach to the on-going monitoring of its external managers, which clearly works as demonstrated by its strong, positive and consistent performance record across it manager of managers funds.”
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