mast image

Special Report

Impact investing

Sections

USS, PGGM investor group OKs 10 brokers

Related Categories

EUROPE - A group of leading European institutions, which includes pension funds USS and PGGM, have commended 10 brokerage firms for the way they analyse non-financial material.

The members of the Enhanced Analytics Initiative - who command total assets of €376bn - encourage brokerage researchers to analyse “extra-financial” considerations. They will allocate a minimum of 5% of broker commissions to those who do this best.

“The ad hoc approach taken so far by many brokers has resulted in a rather patchy coverage of different extra-financial issues, sectors and companies,” said Peter Moon, chief investment officer at USS, the Universities Superannuation Scheme.

“EAI is convinced that, by providing the right incentives, it can support brokers in taking a more systematic approach to this type of research.”

Roderick Munsters, CIO of Dutch health care pension scheme PGGM, said: “EAI is confident that the quality and coverage of extra-financial issues will improve considerably in the near future but we know this depends on additional clients sending a clear signal to brokers about what they want.

“The most effective way for funds and their managers to do this is to join EAI.”

The group - set up in October 2004 - praised Deutsche Bank, DrKW, Goldman Sachs, HSBC, Morgan Stanley, UBS and WestLB. It gave “runner-up” citations to ABN Amro, Citigroup and CM-CIC. The brokers were selected from an initial 21 and were evaluated by consulting firm onValues Ltd.

It is anticipated that the total amount set aside for the project will be around €4-5 million in 2005.

“The response by brokers has been very encouraging. Of the 31 brokers contacted, 68% indicated they wanted to take part,” said onValues’ managing director Ivo Knoepfel.

“Several brokerage institutions are currently shifting gear from a rather opportunistic approach to a more professional one based on stronger institutional commitment.”

The EAI added that it has signed up the Netherlands’ SNS Reaal Group as a member.

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-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<