mast image

Special Report

ESG: The metrics jigsaw

Sections

PMI gives currency to GSAM

PMI, the e13bn Dutch metal workers pension fund, has dropped Deutsche Bank as manager of its e3bn passive currency mandate due to poor performance and instead appointed Goldman Sachs.
Deutsche Bank had been appointed several months ago to assist PMI in its currency hedging strategy, but, says Roland van den Brink, investment director at the Dutch fund: “Deutsche Bank just could not give us the service which was anticipated.” Deutsche was unavailable for comment.
As a replacement for Deutsche Bank, 10 banks were considered. “There are only 10 large currency managers that can execute this currency hedge strategy on a worldwide basis”, says van den Brink.
“There is very little separating the top four players, but in the end Goldman Sachs was chosen for its provision of real time information regarding the currency status of the portfolio.”
Other factors in Goldman Sach’s favour that were mentioned were price, research and collateral flexibility.
The currency hedging programme has formed part of PMI’s investment strategy for the past year, but has gradually become more focused. One year ago 50% of PMI’s US dollar and Japanese yen exposure was hedged, compared to 100% today.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2575

    Asset class: Core Real Estate Muli-Manager Separate Managed Account.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-20.

  • QN-2578

    Asset class: Sovereign Local Currency Emerging Market Debt.
    Asset region: Local emerging markets.
    Size: EUR 950m.
    Closing date: 2019-12-19.

  • QN-2582

    Asset class: Emerging Market Corporate Debt Hard Currency Investment Grade.
    Asset region: Emerging Markets.
    Size: USD 40 – 60 m.
    Closing date: 2020-01-07.

Begin Your Search Here
<