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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.

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 
RankNameWinsAssets (USD MILs)
1State Street Global Advisors18112,977
2Record Currency Management149,092
3AlpInvest Partners27,579
4AXA Rosenberg424,701
5Barclays Global Investors1043,917

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
20061Q2Q20051Q2Q
Total Manager Hires70533337214594571002
U.K. Active Equity371423471928
U.K. Passive Equity000211
U.K. Active Fixed Income124819712
U.S. Active Equity552035791366
U.S. Passive Equity10119415
U.S. Active Fixed Income633707
Ireland Passive Balanced000000
International Active Equity118477122913
International Passive Equity000725
International Active Fixed Income693138972
International Passive Fixed Income000312
Global Active Equity54282624854194
Global Passive Equity42219316
Global Active Fixed Income28151319238154
Global Passive Fixed Income1156523
Europe Active Equity1028291514
Europe Passive Equity000716
Europe Active Fixed Income000413
Europe Passive Fixed Income000211
Asia Active Equity110220
Japan Active Equity 71643934
Australia Active Equity1486251015
Australia Active Fixed Income101202
Real Estate423210542133
Emerging Markets000000
All Alternatives94405419310885
Hedge Funds3211275
Private Equity371720735419
Consultant291316482919

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

Net New 
Net Assets 
RankManager NameWins(USD) Ms
1State Street Global Advisors18112,977
2Record Currency Management149,092
3AlpInvest Partners27,579
4AXA Rosenberg424,701
5Barclays Global Investors1043,917
6Standard Life Investments492,532
7Millennium Asset Management32,163
8AQR Capital Management22,115
9Hermes Pension Management11,849
10A.G. Bisset & Company11,749
11Newton Investment Management61,368
12Hamilton Lane Advisors7965
13Pantheon Ventures25915
14Mellon Financial2906
15PIMCO5789
16AXA Group3777
17Insight Investment3752
18Merrill Lynch Investment Managers4718
19Alliance Capital Management9643
20Brandywine Global Investment Management7633
21Cyrte Investments1632
22Investec Asset Management6629
23LaSalle Investment Management1555
24JPMorgan Asset Management3535
25Partners Group2484
26ING Investment Management Americas1481
27Union Bancaire Privée1462
28Mirabaud Investment Management1405
29Goldman Sachs Asset Management8398
30GMO2370
30Lazard Asset Management1370
30Protego Real Estate Investors1370
33Royal London Asset Management3365
34BlueBay Asset Management1361
35Delaware Investment Advisors4355
36Taube Hodson Stonex Partners1349
37UBS Global Asset Management1347
38BankInvest1296
39Lloyd George Management (Europe)4291
40Blue Sky Group1277
41Ausbil Dexia Limited4258
42Morley Fund Management18253
43Russell Investment Group2240
44SanPaolo IMI Asset Management13235
45KBC Asset Management17234
46Irish Life Investment Managers2227
47Suncorp Investment Management3226
48Mercer Super Trust1207
49Sarasin2200
49Insurance Australia Group Asset Management1200
51Majedie Asset Management1185
52HFA Asset Management3171
52Kempen Capital Management2171
52Sparinvest1171
55MFS Institutional Advisors3167
56Midas Capital Partners2165
57Carnegie, Wylie & Co.1148
58DLIBJ Asset Management International3144
59SG Asset Management2130
60Morgan Stanley Investment Management3128
61T. Rowe Price Associates1119
62Quentin Ayers1118
63Perennial Investment Partners3108
64Baillie Gifford2103
65OFI Institutional Asset Management1100
66Alleron Investment Management296
67Wellington Management Co.395
68Credit Suisse Asset Management192
69Charterhouse Capital Partners182
69Handelsbanken Liv182
71Neptune Investment Management370
72Adams Street Partners266
73AGF Asset Management163
73Dexia Asset Management France163
73Fisch Asset Management163
73Forum Partners163
73Pictet & Compagnie163
78Collins Stewart (CI)260
79ABN AMRO Asset Management456
79DnB NOR Asset Management256
81HarbourVest Partners155
81Martin Currie Investment Management155
81Nuveen Investments255
84Kohlberg Kravis Roberts150
84Blackstone Group150
86Ruffer Investment Services148
86Octane Management148
88INVESCO247
89Coronation Fund Managers146
90Janus Capital Corporation144
90Rockspring Property Investment Managers144
90Key Asset Management144
93Ripplewood Holdings140
93AIG Global Investment140
95Investment Solutions239
96Warakirri Asset Management137
97Montagu Private Equity132
98Norwich Union Investment Management-26
99Asset Super119
100Healey & Baker Investment Managers118
100AMP Asset Management218
100Calibre Capital118
103Sydbank117
104Íslensk Ver_bréf116
105Regarding Capital Management115
106Sanlam Investment Management110
107Generali Asset Management13
108Fidelity Investments22
109Oxford Investment Partners3-
109Vanguard Group3-
109Gartmore Investment Management1-
109H.R.L. Morrison & Co.1-
109Dalton Capital (Guernsey)1-
109Industry Fund Services1-
109Intrinsic Value Investors1-
109Bridgewater Associates1-
109Charlemagne Capital1-
109BNP Paribas Asset Management1-
109AON Corp.1-
109Azimut1-
109Rogge Global Partners1-
109Quest Asset Partners1-
109RAS Asset Management1-
109Pacific Corporate Group1-
109Phillips Hager & North Investment Management1-
109Numeric Investors1-
109MIR Investment Management1-
109Jardine Fleming1-
109Joklar Securities1-
109Jupiter Asset Management1-
109LGT Capital Partners1-
109Turner Investment Partners1-
109Vontobel Asset Management1-
109Western Asset Management1-
109Wilshire Associates1-
109WP Global Partners1-
109SEB Asset Management-1-
109RCM Capital Management-1-
109King & Shaxson Asset Management-1-
109Threadneedle Investments-1-
109InTech Financial Services-1-
142Rathbone Investment Management-1-4
143SEI Investments1-11
144AEGON Asset Management-1-44
145SVM Asset Management-1-52
146Legal & General Investment Management2-55
147Liberty Ermitage Group-1-88
148Ariel Capital Management-1-93
149Schroder Investment Management--194
150TAL Global Asset Management-1-270
151Capital Group Companies-2-277
152Aberdeen Asset Management--292
153Deutsche Asset Management-5-298
154Lombard Odier Investment Management-1-370
155Bank of Ireland Asset Management-3-746
156Henderson Global Investors-4-1,093
157Putnam Investments-1-2,071
158F&C Asset Management-2-42,234

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