The London Borough of Bromley Pension Fund has appointed Crédit Agricole Asset Management (CAAM) to manage its GBP 40 million LDI/Target Return mandate.
The mandate, which will be managed by the Global bond, currency and absolute return team, led by Vincent Chailley, is in recognition of CAAM's status as one of the leading global managers in these asset classes. The appointment follows a comprehensive tendering and evaluation process conducted by London Borough of Bromley, assisted by bfinance.
'The CAAM appointment completes Bromley's review of its pension fund investment management arrangements. CAAM's proposal provided the best solution to the fund's objective of securing a greater element of stability and liability matching in part of the fund to complement more aggressive benchmarks agreed with the fund's two existing balanced managers, Baillie Gifford and Fidelity,' says Paul Dale, Director of Resources at London Borough of Bromley. 'We are looking forward to working with them.'
Terry O'Malley, Business Development Director at bfinance, adds: 'We were delighted to assist the London Borough of Bromley in this exercise. Our aim was to present candidates with the right blend of performance and risk control. This is an increasingly popular asset class and through our comprehensive search we were able to show our client a number of interesting and varied approaches which met their requirements.'
Ian Milton, Director, Institutional Business Development UK and Ireland at CAAM London branch, says: 'We are delighted that The London Borough of Bromley has chosen CAAM to manage its LDI/Target Return mandate, our third Local Government Pension Scheme mandate win since mid-2005. We very much look forward to working with The London Borough of Bromley and are confident that with our innovative portable alpha and liability-driven investment solutions, our experienced team will continue to deliver long term out-performance and meet their investment objectives.'
Background note: Crédit Agricole Asset Management Group is the wholly-owned asset management holding company subsidiary of Crédit Agricole SA With total consolidated assets under management of GBP 349 billion (as at 31/03/2006), the CAAM Group is currently one of the top four asset managers in Continental Europe. In the UK, Crédit Agricole Asset Management (CAAM) London Branch manages GBP 34.7 billion of assets, of which GBP 10.7 billion is in benchmarked Global Bond portfolios and GBP 24 billion in 'cash-plus' or target return portfolios. As a result of its rapid development, CAAM London Branch has increased the size of its team from six investment professionals in 1999 to 19 today.