RUSSIA – The 1.9 billion-rouble (57.1 million-euro) pension fund of Russia’s electric power industry has awarded an active mandate to Pallada Asset Management.

Pallada said in a statement that it would manage up to 180 million roubles (5.41 million euros) for the fund. The Moscow-based company is part of State Street Global Alliance, a 50-50 joint venture between Dutch pension fund Stichting Pensioen Fonds ABP and State Street Global Advisors.

“We were attracted by Pallada’s strong market leadership as the largest outside manager of Russian pension reserves,” said Zaur Ganiev, president of the Non-State Pensions Fund of the Electric Power Industry. “We were also impressed with the expertise and ability they demonstrated to introduce new investment solutions for the fund participants.” The fund has more than 234,000 contributors.

“This is the beginning of a new era of pension reform in Russia and the pension fund of the electric power sector is on the cutting edge,” said Pallada’s chief investment officer Elizabeth Hebert.

“The fund has established itself as a leader by raising the standards for transparency that other large pension funds will be compelled to follow,” Hebert added.

Pallada said fund is Russia’s fourth largest pension fund, and that it serves power companies including Unified Energy Systems. Pallada has 1.2 billion roubles in assets under management.