DENMARK – The 9.7 billion-euro pension administration company Pensionskassernes Administration has appointed State Street Global Advisors to run 100 million-dollars (78.6 million-euros) in enhanced US equities.
SSGA, the investment management arm of State Street Corp. won the mandate thanks to its experience with enhanced funds, said Peter Damgaard Jensen, PKA’s chief executive.
“Our pension fund is expanding, I could call the mandate ‘new money’,” Damgaard Jensen explained. He added that no consultants were involved in the selection.
PKA recently awarded a 140 million-dollar US small-cap mandate to Russell and an 80 million-dollar emerging market equities mandate to Citigroup Asset Management.
PKA, running a defined contribution pension scheme, was established and is owned by eight occupational pension funds with a total of 190,000 members, mainly employees in the public social and health sectors.
At the end of 2003, SSGA said, the market value of assets of the eight pension funds managed by PKA was approximately 14 billion dollars.
SSGA has been managing enhanced equity strategies for more than 10 years, and today manages over 30 billion dollars in enhanced funds on behalf of institutional investors.
Laurent De Greef, director of marketing for Nordic markets at SSGA, said: “Enhanced indexation is a highly risk-controlled investment approach that delivers the benefits of both indexation and active management: added value on a consistent basis in all market environments.”
PKA is Denmark’s largest administration company for occupational pension funds.