DENMARK – F&C Asset Management has been axed from managing a DKK1.3bn (€174m) emerging market equity mandate by Danish pension fund giant ATP.

The €48.4bn scheme cut ties with F&C due to poor performance, reports said. F&C and ATP were not able comment on the matter.

It remains unclear whether the Danish scheme will give management of the mandate to Mellon Global Investments or Schroder Investment Management – among ATP’s emerging market equities managers. There is also speculation in reports that the mandate may go to an external manager.

Jeff Chowdhry, former F&C co-head of emerging equities, replaced Humphrey Carey as head of emerging equities last year. According to an F&C spokesperson: “Chowdhry is attached to reasonable performance”.

Carey, a long-term appointment at F&C, left by mutual agreement, said the spokesperson. Another long-term appointment, Rupert Brandt, will leave his position as head of the emerging markets investment trust and Latin American Investment trust in March.

The F&C spokesperson stated that Brandt is moving to a boutique, but no further details could be given. The asset management firm is currently looking for a replacement.

F&C’s emerging equities team currently has 10 members.

According to reports, the management of emerging market equities by F&C slumped 21% between 2004 and 2005 to just €3.2bn.

In December F&C – which replaced earlier replaced chief investment officer Tony Broccardo with Fernando Ribeiro - said it expected to post net asset outflows of around £7.8bn (€11.5bn) in 2005 – excluding the previously announced €20bn insurance withdrawals.