FRANCE – CRPN, the €3.4bn pension fund for flight personnel, has dismissed JP Morgan Fleming Asset Management, UBS Global Asset Management and Baring Asset Management from a €40m emerging market portfolio.
Caisse de Retraite du Personnel Navigant director Etienne Stofer told IPE that performance issues, as well as a “lack of diversification” had prompted the fund to dismiss JP Morgan and Barings, while UBS, in spite of its “good performance” did not make it to the shortlist drawn up by consultant Fideas.
Stofer stressed that the change in management only applied to the emerging market portfolio, which is worth a little over 1% of the fund’s value.
The fund has invested its emerging market resources in a fund of fund, comprising 13 managers including French and international medium to large asset managers.
Fideas, which is a partnership between Banque Privée Quilvest and consultant Pierre Filippi, acts as supervisor to the managers, which are split into two groups focusing on global and Asian emerging markets.
“We have invested in emerging markets for a long time, we have simply reinforced our allocation with a special focus on Eastern Europe, including Turkey and Russia,” Stofer said.
CRPN allocates 39% to bonds, 35% to equities, 19% to real estate, 3% to alternatives and 4% to cash. The fund is in a phase of “technical deficit,” Stofer told IPE, with expenses higher than contributions.
But it is sustained by good returns, he added.
JP Morgan was not available for comment and UBS was not contactable. Barings declined comment.
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