Copenhagen-based Dkr45bn ($7bn) Kommunernes Pensionsforsikring (KP), an amalgamation of Danish local authority pension schemes, has outsourced the second of two $45m'advisory' global emerging markets mandates to Nicholas Applegate Capital Management in London.

Tage Fabrin-Brasted, a consultant with Danish Portfolio Administration and advisory director and administrator of the KP fund, explained: Under Danish law local authority money cannot be directly outsourced to investment managers, so Nicholas Applegate are advising on how to invest the assets."

Dresdner RCM recently picked up the first of the mandates, and Fabrin-Brasted says the two managers will now be in 'competition' on performance.

He adds: "KP decided to quasi outsource the assets for diversification purposes pre-euro, but the remainder of the bonds and equities will continue to be managed in-house.""