The Horlick Affair has clearly shaken the confidence of pension funds in Morgen Grenfell Asset Management but, as an IPE survey reveals, funds’ attitudes vary, although at least four funds are considering their position.
However, only one of the 11 schemes we spoke to had actually dropped MGAM as their investment manager.
A further three schemes said that they were sticking with MGAM for now with no plans to review the relationship while three declined to comment.
Three schemes, in particular, could follow the example of trustees at Beales Pension scheme at J E Beale plc, who decided to move out of the relationship with MGAM after the headline-grabbing events in January.
Exacta Circuits, Hodder Headline plc and BPB plc remain undecided but they plan reviews in the near future with BPB’s trustees due to meet with MGAM at the time of going to press.
Agricultural and industrial products company, J Bibby and Son is sticking with MGAM, but is watching to see what happens next. We are concerned but until there is some wayward trend in their performance we will stick with it,” said Mike Fahy, secretary to the trustees and assistant company secretary.
Both the F11 Group and Black and Decker said they had no plans to sever links with MGAM while Lilly industries plc pension fund said it planned to review the relationship but only as part of a regular look at investment management.
“It would certainly be a hasty decision to drop them in the light of recent events, whilst the rest of the team is still in place,” said John Upshall, Lilly’s director of pensions.
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