NETHERLANDS – Dutch textiles company Gamma Holding has appointed multi-manager specialist Frank Russell to manage a 175 million euro equity and bond portfolio for its 340 million euro pension fund.
The fund decided to employ a multi-manager as it was felt that the fund’s own capacity and resources were too limited to cope with the continuous monitoring and control of asset managers.
Says Willem van der Willigen, chairman of the investment committee of Stichting Pensioenfonds Gamma Holding Nederland: “By delegating these operational activities to Russell, the pension fund can spend more time on strategic investment and pension issues.”
Van der Willigen confirmed that the fund was originally invested in equities and bonds, so no change in asset allocation has occurred, but declined to say who was the previous manager.
Frank Russell has also been appointed to run a 50 million euro mandate for two Belgian institutional investors, one of which is the King Baudouin Foundation.
Oscar Pesch, responsible for Russell’s institutional clients in Benelux and Scandinavia believes that pension funds are increasingly seeking to outsource operational activities.
Frank Russell manages 70 billion euros in assets worldwide, of which 15 billion euros are managed on behalf of European investors.