A U.K. pension fund has terminated Credit Suisse Asset Management from handling a short-term bond mandate due to poor performance.
The States of Guernsey Contingency Reserve Fund, which runs £195 million, recently cut CSAM loose. "Our dissatisfaction with the manager's performance led to the termination," said Rob McMicking, investment adviser to the plan. The mandate is now split equally between Investec Asset Management and Credit Suisse, Guernsey, which is the local private banking branch of the Swiss bank and separate from CSAM.
"The mandate still remains with the Credit Suisse group," said Jane Collins, head of U.K. institutional business at CSAM, declining to discuss its underperformance.
The brief is to outperform a benchmark made up 90% by the J.P. Morgan U.K. 1-10 Year Government Bond Index and 10% by the Salomon Brothers U.K. Sterling Three-Month Deposit Index.