SSgA Grabs Top Rank; F&C Falls From Grace

State Street Global Advisors has seized the top place in GMM‘s half-year manager ranking by net new assets gained from non-U.S. pensions and other institutions. The manager stepped up from second place at the midway point last year with 181 new mandate wins worth USD12.977 billion. Not so far behind was Record Currency Management with a whopping USD9.092 billion, compared to just USD665 million (GBP351 million) in 2004.

2006 Half-Year Manager Ranking by Assets Gained
	Manager	Net	Net New
Rank	Name	Wins	Assets (USD MILs)
1	State Street Global Advisors	181	12,977
2	Record Currency Management	14	9,092
3	AlpInvest Partners	2	7,579
4	AXA Rosenberg	42	4,701
5	Barclays Global Investors	104	3,917

Record Currency, a specialist in active currency management, has seen increased demand by local authorities, said Peter Wakefield, managing director, but there is also demand growing in continental Europe and the U.S. In addition, corporate pension schemes have shown increased interest in the asset class. The manager’s largest mandate was for roughly GBP1.8 billion from an undisclosed U.K. pension. Its most recent announced wins were GBP150 million from Strathclyde Pension Fund and GBP15.5 million from Pennon Group Pension Scheme.

AlpInvest Partners, formerly known as NIB Capital Private Equity, came third with only two net wins but worth a staggering USD7.579 billion. The private equity specialist is sponsored by the two largest Dutch pension schemes, Stichting Pensioenfonds ABP and Stichting Pensioenfonds PGGM, which are responsible for the big asset inflow.

Barclays Global Investors, the top ranker for the last two GMM manager league tables, has dropped to fifth place with USD3.917 billion in 104 new net wins, still a considerable number. The manager continues to suffer on the passive multi-asset offering as pension schemes move into an active specialist approach. One of its last mandate losses was worth GBP402 million when Leicestershire County Council Pension Fund decided to move to a specialist active strategy.

F&C Falls From Grace

At the bottom of the table comes F&C Asset Management with a staggering loss worth USD42.234 billion. The losses for the past six months included a EUR2 billion contract with Dutch Pensioenfonds Vervoer (GMM, 9/5), a GBP985 million mandate with Electricity Supply Pension Scheme in the U.K., and from its own F&C Latin American Investment Trust that decided to outsource GBP260 million. However, the largest blow to the manager was a GBP22.5 billion brief it lost from life insurer Resolution Life after it merged with Britannic Group early this year.

Putnam Investments continues to struggle, with losses worth USD2.071 billion. The manager ranked second from the bottom, having lost an AUD2.8 billion brief from Australian manager-of-managers BT Funds Management (GMM, 3/5).

Closely behind came Henderson Global Investors, with USD1.093 billion in losses. The balanced manager suffered the most from local authorities choosing to go via the specialist route. City of Westminster County Council Pension Fund (GMM, 25/5), Falkirk Council Pension Fund, London Pensions Fund Authority and London Borough of Barnet Superannuation Fund have all replaced Henderson this year.

Int’l Equity Mandates Increase

International active equity mandates saw a huge increase to 118 awarded for the first half of this year from just 22 during last year’s first half. However, global active equity has only seen 54 awarded briefs, compared to 248 last year.

Pension schemes are betting on the good performance of international equity markets and the diversification it brings, said a partner at U.K. consultant Hymans Robertson. Schemes “are opting for liability-driven investments and high-alpha [strategies], which can be considered alternatives,” he added.

There has been a considerable decrease in alternatives briefs, 94 this year from 193 last year, particularly of hedge funds, which saw a decrease to 3 from 12, and private equity, declining to 37 from 73 mandates. Hedge funds have been the target of much controversy over the last couple of years and performance has been disappointing but what most schemes seem to worry about is lack of transparency. One of the most recent pension schemes that decided against hedge funds for this reason was the EUR13 billion Dutch rail sector Spoorwegpensioenfonds (GMM, 26/1).

2006 Global (Ex-U.S.) Hiring Activity
	2006	1Q	2Q	2005	1Q	2Q
Total Manager Hires	705	333	372	1459	457	1002
U.K. Active Equity	37	14	23	47	19	28
U.K. Passive Equity	0	0	0	2	1	1
U.K. Active Fixed Income	12	4	8	19	7	12
U.S. Active Equity	55	20	35	79	13	66
U.S. Passive Equity	1	0	1	19	4	15
U.S. Active Fixed Income	6	3	3	7	0	7
Ireland Passive Balanced	0	0	0	0	0	0
International Active Equity	118	47	71	22	9	13
International Passive Equity	0	0	0	7	2	5
International Active Fixed Income	69	31	38	9	7	2
International Passive Fixed Income	0	0	0	3	1	2
Global Active Equity	54	28	26	248	54	194
Global Passive Equity	4	2	2	19	3	16
Global Active Fixed Income	28	15	13	192	38	154
Global Passive Fixed Income	11	5	6	5	2	3
Europe Active Equity	10	2	8	29	15	14
Europe Passive Equity	0	0	0	7	1	6
Europe Active Fixed Income	0	0	0	4	1	3
Europe Passive Fixed Income	0	0	0	2	1	1
Asia Active Equity	1	1	0	2	2	0
Japan Active Equity	7	1	6	43	9	34
Australia Active Equity	14	8	6	25	10	15
Australia Active Fixed Income	1	0	1	2	0	2
Real Estate	42	32	10	54	21	33
Emerging Markets	0	0	0	0	0	0
All Alternatives	94	40	54	193	108	85
Hedge Funds	3	2	1	12	7	5
Private Equity	37	17	20	73	54	19
Consultant	29	13	16	48	29	19

2006 Global (ex-U.S.) Manager Ranking By Assets Gained

			Net New
		Net	Assets
Rank	Manager Name	Wins	(USD) Ms
1	State Street Global Advisors	181	12,977
2	Record Currency Management	14	9,092
3	AlpInvest Partners	2	7,579
4	AXA Rosenberg	42	4,701
5	Barclays Global Investors	104	3,917
6	Standard Life Investments	49	2,532
7	Millennium Asset Management	3	2,163
8	AQR Capital Management	2	2,115
9	Hermes Pension Management	1	1,849
10	A.G. Bisset & Company	1	1,749
11	Newton Investment Management	6	1,368
12	Hamilton Lane Advisors	7	965
13	Pantheon Ventures	25	915
14	Mellon Financial	2	906
15	PIMCO	5	789
16	AXA Group	3	777
17	Insight Investment	3	752
18	Merrill Lynch Investment Managers	4	718
19	Alliance Capital Management	9	643
20	Brandywine Global Investment Management	7	633
21	Cyrte Investments	1	632
22	Investec Asset Management	6	629
23	LaSalle Investment Management	1	555
24	JPMorgan Asset Management	3	535
25	Partners Group	2	484
26	ING Investment Management Americas	1	481
27	Union Bancaire Privée	1	462
28	Mirabaud Investment Management	1	405
29	Goldman Sachs Asset Management	8	398
30	GMO	2	370
30	Lazard Asset Management	1	370
30	Protego Real Estate Investors	1	370
33	Royal London Asset Management	3	365
34	BlueBay Asset Management	1	361
35	Delaware Investment Advisors	4	355
36	Taube Hodson Stonex Partners	1	349
37	UBS Global Asset Management	1	347
38	BankInvest	1	296
39	Lloyd George Management (Europe)	4	291
40	Blue Sky Group	1	277
41	Ausbil Dexia Limited	4	258
42	Morley Fund Management	18	253
43	Russell Investment Group	2	240
44	SanPaolo IMI Asset Management	13	235
45	KBC Asset Management	17	234
46	Irish Life Investment Managers	2	227
47	Suncorp Investment Management	3	226
48	Mercer Super Trust	1	207
49	Sarasin	2	200
49	Insurance Australia Group Asset Management	1	200
51	Majedie Asset Management	1	185
52	HFA Asset Management	3	171
52	Kempen Capital Management	2	171
52	Sparinvest	1	171
55	MFS Institutional Advisors	3	167
56	Midas Capital Partners	2	165
57	Carnegie, Wylie & Co.	1	148
58	DLIBJ Asset Management International	3	144
59	SG Asset Management	2	130
60	Morgan Stanley Investment Management	3	128
61	T. Rowe Price Associates	1	119
62	Quentin Ayers	1	118
63	Perennial Investment Partners	3	108
64	Baillie Gifford	2	103
65	OFI Institutional Asset Management	1	100
66	Alleron Investment Management	2	96
67	Wellington Management Co.	3	95
68	Credit Suisse Asset Management	1	92
69	Charterhouse Capital Partners	1	82
69	Handelsbanken Liv	1	82
71	Neptune Investment Management	3	70
72	Adams Street Partners	2	66
73	AGF Asset Management	1	63
73	Dexia Asset Management France	1	63
73	Fisch Asset Management	1	63
73	Forum Partners	1	63
73	Pictet & Compagnie	1	63
78	Collins Stewart (CI)	2	60
79	ABN AMRO Asset Management	4	56
79	DnB NOR Asset Management	2	56
81	HarbourVest Partners	1	55
81	Martin Currie Investment Management	1	55
81	Nuveen Investments	2	55
84	Kohlberg Kravis Roberts	1	50
84	Blackstone Group	1	50
86	Ruffer Investment Services	1	48
86	Octane Management	1	48
88	INVESCO	2	47
89	Coronation Fund Managers	1	46
90	Janus Capital Corporation	1	44
90	Rockspring Property Investment Managers	1	44
90	Key Asset Management	1	44
93	Ripplewood Holdings	1	40
93	AIG Global Investment	1	40
95	Investment Solutions	2	39
96	Warakirri Asset Management	1	37
97	Montagu Private Equity	1	32
98	Norwich Union Investment Management	-	26
99	Asset Super	1	19
100	Healey & Baker Investment Managers	1	18
100	AMP Asset Management	2	18
100	Calibre Capital	1	18
103	Sydbank	1	17
104	Íslensk Ver_bréf	1	16
105	Regarding Capital Management	1	15
106	Sanlam Investment Management	1	10
107	Generali Asset Management	1	3
108	Fidelity Investments	2	2
109	Oxford Investment Partners	3	-
109	Vanguard Group	3	-
109	Gartmore Investment Management	1	-
109	H.R.L. Morrison & Co.	1	-
109	Dalton Capital (Guernsey)	1	-
109	Industry Fund Services	1	-
109	Intrinsic Value Investors	1	-
109	Bridgewater Associates	1	-
109	Charlemagne Capital	1	-
109	BNP Paribas Asset Management	1	-
109	AON Corp.	1	-
109	Azimut	1	-
109	Rogge Global Partners	1	-
109	Quest Asset Partners	1	-
109	RAS Asset Management	1	-
109	Pacific Corporate Group	1	-
109	Phillips Hager & North Investment Management	1	-
109	Numeric Investors	1	-
109	MIR Investment Management	1	-
109	Jardine Fleming	1	-
109	Joklar Securities	1	-
109	Jupiter Asset Management	1	-
109	LGT Capital Partners	1	-
109	Turner Investment Partners	1	-
109	Vontobel Asset Management	1	-
109	Western Asset Management	1	-
109	Wilshire Associates	1	-
109	WP Global Partners	1	-
109	SEB Asset Management	-1	-
109	RCM Capital Management	-1	-
109	King & Shaxson Asset Management	-1	-
109	Threadneedle Investments	-1	-
109	InTech Financial Services	-1	-
142	Rathbone Investment Management	-1	-4
143	SEI Investments	1	-11
144	AEGON Asset Management	-1	-44
145	SVM Asset Management	-1	-52
146	Legal & General Investment Management	2	-55
147	Liberty Ermitage Group	-1	-88
148	Ariel Capital Management	-1	-93
149	Schroder Investment Management	-	-194
150	TAL Global Asset Management	-1	-270
151	Capital Group Companies	-2	-277
152	Aberdeen Asset Management	-	-292
153	Deutsche Asset Management	-5	-298
154	Lombard Odier Investment Management	-1	-370
155	Bank of Ireland Asset Management	-3	-746
156	Henderson Global Investors	-4	-1,093
157	Putnam Investments	-1	-2,071
158	F&C Asset Management	-2	-42,234

SSgA Grabs Top Rank; F&C Falls From Grace

State Street Global Advisors has seized the top place in GMM’s half-year manager ranking by net new assets gained from non-U.S. pensions and other institutions.