Isle of Man Treasury announces appointment of investment managers
The Treasury has announced the appointment of 7 investment managers who will be responsible for managing the Government’s externally invested reserves until March 2016. The seven investment managers appointed are:
- Barclays Wealth Isle of Man;
- BlackRock (Isle of Man) Limited;
- Capital International Limited;
- Collins Stewart Wealth Management;
- Fairbairn Private Bank;
- Scottish Widows Investment Partnership; and
- Thomas Miller Investment (Isle of Man) Limited.
The Treasury reviews its arrangements for the management of investments every five years. There are currently five funds which are partly or wholly managed by external investment managers:
- Hospital Estate Development Fund;
- National Insurance Investment Account;
- Notes Issued Fund (part of the Manx Currency Account);
- Public Service Employees Pension Reserve; and
- Reserve Fund.
During 2010 The Treasury commenced a tender process to appoint investment managers for the period from 1 April 2011 to 31 March 2016. The tender process involved sending Invitations to Tender to financial institutions licensed by the Financial Supervision Commission to conduct Investment Business and any Bank that was licensed on the Island and was known to have a major investment arm as part of its Group. An advertisement was also placed in the local press.
Invitations were issued to a total of 58 institutions. A total of 21 tender proposals were received and considered by Treasury’s Investment Committee. Following consideration of the tender proposals received, a number of institutions were short-listed and invited to make presentations to the Investment Committee in November and December 2011. After due consideration, 7 institutions were appointed by the Treasury as the Government’s investment managers for the period to 31 March 2016.
The Treasury determines the amount from each Government Fund to be managed by each investment manager. Investment managers can be responsible for managing amounts in respect of a single Fund or a number of different Funds. Likewise, a Fund may be managed by a single investment manager or a number of different investment managers.
Under the new investment management agreements, each Fund is managed under either Absolute Return Mandate or Fixed Interest Mandate. The Absolute Return Mandates have a benchmark of UK Base Rate plus 2.5%. The Fixed Interest Mandates have a benchmark based on the FTSE UK Government 0-5 Year Gilt Total Return Index.
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