Month: September 2020
New regulatory frameworks in Europe could cost the fund management industry $300m-500m (€221m-370m) per annum over the next three years and will inevitably lead to increased consolidation, a new report has found.According to a study entitled ‘The impending profitability challenge for European fund managers’, conducted by BNY Mellon and Ernst & Young (EY), complying with multiple regulatory measures will represent the biggest cost for European fund managers.They estimate that the cumulative additional costs of the regulations directly applicable to European fund managers lie within a range of $0.3bn and $0.5bn a year over the next three years, which would represent a more than 3% increase in cost/income ratios.The report stresses that each firm will be challenged to find diverse methods of delivering its regulatory programmes. While medium-sized entities might be penalised in terms of consultancy spend, headcount or capital provision, larger firms have bigger budgets but undoubtedly bigger compliance issues due to the complexity, geographical spread and volume of their product ranges, the report says.However, it also notes that potential revenue opportunities may be uncovered by offering value-add services to fund managers, such as financial planning or decumulation products.But this also means regulatory pressure may lead to increased consolidation of asset management firms and create significant barriers to entry, as small firms struggle to survive.The report, which concludes that larger fund managers will benefit from their robust risk infrastructures and offering multi-asset products, goes on to say that managers need to take a “holistic view” of their 3-5 year regulatory compliance plans.“In general, costs have been managed well since the credit crunch, rendering further reduction initiatives harder to identify and implement,” it says.“Consequently, firms will have to be creative to manage revenue up, and costs continuously down, constantly challenging their business models and looking for short-term opportunities to aggressively restructure their funds ranges.”
The cost cap on default funds in the UK’s new workplace savings system is starting to bite on Diversified Growth Funds (DGF).The government recently announced plans to cap member-borne charges in defined contribution (DC) default investment funds at 75bps by April 2015.Britt Hoffmann-Jones, head of DC at consultancy P-Solve, said it was “a real shame that millions of customers are effectively being denied better quality investment management.”With their focus on asset allocation rather than stock selection as the prime source of return, DGFs have proven popular with pension fund trustees and their consultants. Research from consultancy Towers Watson showed the proportion of FTSE 100 schemes using a DGF in their default fund rose from around 10% to 70%, over the last five years. This coincided with a substantial fall in allocations to purely passive investments from the FTSE DC schemes.Assets under management for the leading handful of DGFs are estimated at £70bn (€79bn).But P-Solve is one of a number of consultancies now discussing with DGF providers whether they can drop their fees or find some compromise ahead of the cap’s introduction next year.“There are only so many low-cost providers out there,” said Hoffman-Jones.Commercial and performance success means that the biggest DGFs are priced close to 100bps. The 75bp cap also has to include administration and any investment platform charges. Consultants reckon 25-35 bps is a fair range for the administration costs.Andrew Cheseldine, a partner at consultancy LCP, said he had some sympathy with the predicament for DGF managers – “but not a lot.”LCP clients do have default funds which are a blend of passive and DGFs. He reckoned the mix might have to include more passive in the future if DGF managers cannot lower their fees.Both Hoffman-Jones and Cheseldine agreed that the cap was the UK government’s defence against accusations that ordinary workers are funding City ‘fat cats’ first and their own retirement second.Cheseldine added that whatever the awkwardness of the cap, new workplace pensions’ success depends on how eight million people perceive them rather than the reality.Stephen Bowels, head of DC at Schroders said: “There is a new generation of multi-asset solutions coming through which will be diversified with active allocation, and a pricing point less than 75bps, but it will mean certain assets might not appear such as property and infrastructure, simply because they are too expensive to put into a portfolio at 75bps.”Cheseldine added that the ambit of fees under scrutiny would only widen, noting that issues such as soft commissions and transaction costs have yet to be factored into the 75bps cap.One method of altering fee revenues from default funds is to raise the charge on employee contributions and lower the annual management charge proportionately.This is how NEST, the State-backed fund, operates. Hoffman-Johns said that this mix would work for young schemes where the assets were insubstantial.
The Ireland Strategic Investment Fund (ISIF) would be “very interested” in small-scale public-private partnerships (PPPs), its investment director has disclosed.Eugene O’Callaghan, who currently oversees investments at the National Pensions Reserve Fund (NPRF) prior to the full launch of the ISIF, also said that he was less interested in offering Irish small and medium-sized enterprises (SMEs) access to further loans than allocating some of the €6.8bn portfolio to equity investments boosting the economy.Speaking at the joint Oireachtas committee on jobs, enterprise and innovation earlier this month, O’Callaghan spoke of the problem of attracting large institutional investors to some of the smaller scale PPP projects proposed by the Irish government.“Financial institutions such as insurance companies and pension plans would typically write cheques of €100m or more each,” he said. He added that smaller scale projects would be of interest to banks, but said there was also an opportunity for ISIF to support them.“Certainly, on the smaller to medium-sized projects there is every possibility that there will be financing gaps in those and we would certainly be very interested in participating in the projects where such gaps might exist.”Discussing the NPRF’s €500m commitment to three SME funds, made last year in anticipation of the launch of the domestically-focused ISIF, he noted that that Irish companies were currently “disproportionately” reliant on debt funding.“In our view, the solution to excessive corporate debt levels is not necessarily more debt but greater use of other financing means such as equity, where the ISIF can particularly make a difference.“Its flexibility to invest up and down the capital structure and over longer time periods means it can provide alternative funding options to complement those provided by traditional banking.”O’Callaghan said the three SME funds had identified over 400 investment opportunities in the past year, but that only 45 had progressed to the stage where detailed proposals were drawn up by managers.He echoed previous sentiment that the ISIF would look to be co-investor in a “suite of funds” to assist SMEs, but that the higher operational costs associated with ventures targeting small firms made it hard to “establish a commercial case” in favour of investment.In an interview with the February issue of IPE, O’Callaghan said that the ISIF would have a dual bottom line of stimulating economic growth and investing on a commercially viable basis.Minister for finance, Michael Noonan has previously said it was “essential” that the ISIF act as an alternative source of financing to a broad range of projects – including agriculture, construction and technology ventures.
Of the most common, a value tilt was used by just over one-third of those who use tilts, with quality, size and momentum each used by 16.9% of investors.However, despite the fact over-exposure to certain factors was a top concern regarding the use of risk-factor tilts, only 18% of respondents was ‘very certain’ of the total risk factor exposure in the entire listed equity portfolio.Just over 50% was ‘moderately certain’, while the remaining 31% was either ‘fairly uncertain’ or entirely unaware of cross exposure.Further analysis on three pension funds – one each from the UK, Europe and the US – Northern Trust found that investors’ use of varying tilt strategies negated any positive tilts through contradicting methods.As a result, those using a wide range of active and passive equity strategies in the portfolio ended up with a neutral factor exposure, despite intended tilts to one or more factors, the US asset manager said.“The portfolios do not always reflect the investors’ goals and objectives,” NTAM said.John Krieg, managing director of institutional distribution at Northern Trust, said the ability to understand cross exposure was imperative in multi-factor tilt circumstances.“The fact fewer than one in five respondents felt certain of their factor exposures shows the difficulty of monitoring a large, complex institutional portfolio,” he added.On analysing three pension funds’ equity portfolios and discovering a neutral factor tilt, despite intended exposures, Krieg said: “In general, taking an experimental approach to factor-based investing does not produce the desired results.“Investors have a greater likelihood of success if they make a substantial commitment to these strategies.” A significant proportion of global institutional investors are unaware of risk-factor cross exposure when applying tilts in equity portfolios, a survey has shown.The concept arises from applying risk-factor tilts in both active and passive equity portfolios, which has become increasingly common in recent years.Some of the tilt strategies are referred to as smart beta or alternative index strategies.A survey of 139 global investors by Northern Trust Asset Management (NTAM) found a slight majority (51%) use factor tilt strategies within their listed equity portfolios.
APG, AkzoNobel, Eumedion, PFZW, RPMI Railpen, Hermes Equity Ownership Services, Etera, Tikehau, Morgan Stanley, Aviva Investors, BlackRock, Nationale-Nederlanden Life, International Forum of Independent Audit RegulatorsAPG – AkzoNobel has appointed Dick Sluimers, chief executive at the €424bn asset manager and pensions provider APG, as a member of its supervisory board, as well as its audit committee. Sluimers started as financial director at the €373bn civil service scheme ABP in 2003, after a career at several Dutch ministries. In 2008, ABP privatised its asset management and service provision by establishing APG.Eumedion – Peter Borgdorff, director of the healthcare scheme Pensioenfonds Zorg en Welzijn, has been reappointed for two years as chairman at Eumedion, the platform for corporate governance and sustainability. The board also appointed Frank Curtiss, head of corporate governance at asset manager RPMI Railpen, as board member for the same period. Curtiss succeeds Colin Melvin, chief executive at Hermes Equity Ownership Services, who stepped down after completing his statutory maximum six-year term. Currently, Eumedion has 70 affiliated institutional investors with combined asset under management of more than €1trn.Etera – Harri Kailasalo and Markus Ainasoja have been re-elected chair and vice-chair of the pension mutual’s supervisory board. Kailasalo is currently executive vice-president of infrastructure construction at Lemminkäinen and has been the board’s chair since 2014, while Ainasoja works as an advocate at Rakennusliitto, the Finnish construction trade union. Tikehau – Carmen Alonso has joined the private debt team. Based in London, she will lead direct lending activities in Germany, the Nordic region, Spain and the UK. She joins from Morgan Stanley, where she was managing director of the European Leverage Finance team. Before then, she worked in leverage finance at HVB, Merrill Lynch and UBS.Aviva Investors – Simon Young has been appointed as a UK equities fund manager. He will work on Aviva Investors’ institutional UK Equity Fund and assist on the retail UK Equity Income Fund. He joins from BlackRock, where he was a UK equities fund manager.Nationale-Nederlanden Life – Hans Bonsel has been appointed chief risk officer (CRO) at Dutch insurer Nationale-Nederlanden Life. As of 1 June, he is to succeed Annemarie Mijer. Bonsel has almost 30 years of experience in the insurance sector and has been in several executive and risk management positions at ING, Nationale-Nederlanden and NN Group. Between 2004 and 2011, he headed the actuarial and risk department at Nationale-Nederlanden Life Retail, as well as the company’s section for individual pensions. He also worked as CRO at Nationale Nederlanden Corporate Clients.International Forum of Independent Audit Regulators – The IFIAR has appointed Janine van Diggelen as its chair for the next two years. Van Diggelen is head of accountants and reporting monitoring at Dutch watchdog AFM. Having served as vice-chair for two years, Van Diggelen succeeds Lew Ferguson, board member of the US supervisor PCAOB during IFIAR’s annual meeting in Taiwan. Brian Hunt, chief executive at Canadian regulator CPAB, was elected vice-chairman.
Leppälä also argued that the European Insurance and Occupational Pensions Authority (EIOPA) had warned that capital requirements could have a “significant negative impact” on the pensions sector but also on individual fund sponsors. “The IORP II,” he added, “explicitly states that the further development at the EU level of solvency models is not realistic in practical terms and not effective in terms of costs and benefits, particularly given the diversity of pension funds across member states.”Leppälä said the IMF should “respect” the views of European policymakers, EIOPA and individual member states.“It is up to Sweden to decide the design of its pension system,” he said.The IMF report argued that the introduction of Solvency II had improved the quality of reporting across Sweden’s insurance sector and boosted solvency ratios across the sector, which manages assets in excess of the country’s GDP.However, the European directive only applies to around 44% of the market, with pension insurance companies enjoying an exemption until a transitional period comes to an end in 2019. Sweden should disregard calls by the IMF to impose capital requirements on its pensions sector, as the notion has already been “clearly rejected” by the European Commission during its most recent review of the IORP Directive.PensionsEurope argued that the IMF was “badly mistaken” to propose a framework akin to Solvency II for Sweden’s pensions sector, which a report released last week argued was required to equalise the level of protection afforded to consumers.Matti Leppälä, PensionsEurope’s secretary-general, told IPE the proposed capital requirements would not increase benefit security but would undermine the sector’s ability to invest in the real economy or contribute to economic growth.“Solvency II-type rules for IORPs have been clearly rejected by the European Commission, as it didn’t propose them to the soon upcoming IORP Directive,” he said.
Last year was the Chinese year of the monkey – and the monkeys ruled over traditional passive equity investing, too, according to academic research. In an influential 1973 book ‘A Random Walk Down Wall Street’, economics professor Burton Malkiel famously quipped that “a blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.”Fast-forward to the start of this year, and more financial academics had monkeys on their minds. Looking back on 2016, Andrew Clare, Nick Motson, and Stephen Thomas of City University’s Cass Business School set out to ascertain whether the monkeys had again beaten the professionals.In 2011 the trio had established that randomly weighted indices (i.e. those chosen hypothetically by monkeys) outperformed market-cap weighted indices 99% of the time, when backtested on US equity markets between 1968 and 2011.Using the 500 largest stocks listed on the NYSE, Amex, and NASDAQ stock exchanges, the authors constructed a market-cap weighted benchmark. They then used the “Monte Carlo” randomisation technique to generate another one billion indices – the “monkeys”.In addition they measured the performance of eight alternative indices such as smart beta benchmarks, equal-weight benchmarks, and the maximum diversification technique first introduced by TOBAM founder Yves Choueifaty in 2008.Lastly, they generated an index based on the rules of the word game Scrabble, with weightings based on the score of each company’s three-letter stock market ticker – a technique Clare has used previously with much success.The monkeys“In the interests of animal welfare we have since released our monkeys back into the wild for a well-earned rest and some energy replenishing bananas.”In 2016, according to Clare, Motson, and Thomas, “88% of the monkeys managed to produce a higher return than the market cap benchmark”.“The average monkey return was 13.4%; the luckiest monkey achieved a return of 27.2%; while the unluckiest monkey managed a return of just 3.83%,” the researchers wrote.The trio’s market cap benchmark posted a total return of 11.6%.Almost 90% of monkey indices performed better than the market cap index, the researchers found. On a risk-adjusted basis, 67% of monkeys performed better.Smart betaThe best of the alternative indices was the fundamentally weighted benchmark, a composite of indices with companies weighted according to book value, dividends, cash flow, and sales.It posted a total return of 16.1% during 2016, the authors reported. The Scrabble-based benchmark returned 13.4%.Only the minimum variance index underperformed its market cap rival, gaining 10.2%.On a risk-adjusted basis, the maximum diversification index had the best Sharpe ratio of the alternative benchmarks. All alternatives had a better Sharpe ratio than the market cap index, the authors found.“Taken together, our results suggest that it was a pretty good year for Cass Business School’s monkey index constructors, and another poor year for market cap weighted US stock investing,” Clare, Motson, and Thomas wrote.They added: “2017 is the Chinese year of the rooster. It remains to be seen whether the Cass Business School monkeys will be crowing at the end of next year or not… but all the evidence suggests that they have the beating of market cap-weighted index investing.”The authors sought to reassure readers in the paper’s abstract: “In the interests of animal welfare we have since released our monkeys back into the wild for a well-earned rest and some energy replenishing bananas.”The full paper can be downloaded here.,WebsitesWe are not responsible for the content of external sites’Was 2016 the year of the monkey?’ – Clare, Motson, Thomas (2017)
The International Financial Reporting Interpretations Committee (IFRS IC) will not introduce new rules for discount rates relating to use of foreign currencies.The IFRS IC tentatively concluded at a meeting this month that existing pensions accounting literature already provides sufficient basis for defined benefit plan sponsors to determine discount rates.The decision means that the IFRS IC will not to add the issue to its standard-setting agenda. The decision affects sponsors that are currently applying International Accounting Standard 19, Employee Benefits (IAS 19), in countries that have adopted another country’s currency as its official currency. Committee member Bruce Mackenzie said: “Each time we had to assess a discount rate in Africa, whatever the currency, we always managed to find a solution.“So, I think what is proposed by the staff seems consistent with what we usually practiced in the past, even in [regions] where you sometimes don’t have a deep market in corporate bonds [or] even in government bonds.”Interested parties have 60 days to comment on the decision.Debate during a meeting on 14 March concerned a request from an entity based in Ecuador, which uses the US dollar as its official currency.The submitter argued that that there was no deep market for US dollar-delimited high quality corporate bonds in Ecuador. It asked if it should look instead to other markets such as the US where those bonds are issued in order to calculate its discount rate.Where there are no high-quality corporate bonds in a jurisdiction, IAS 19 requires entities to revert to government-issued bonds.The submission also asked the committee to rule on whether it would be appropriate to fall back on yields on Ecuadorean government debt or instead use market yields on US dollar debt issued in another market or country.The committee also said that an entity should apply “judgement to determine the appropriate population of high quality corporate bonds or government bonds to reference when determining the discount rate.”In addition, the committee tentatively concluded that the “currency and term of the bonds must be consistent with the currency and estimated term of the post-employment benefit obligations.”The IFRS IC has also noted that the discount rate did not reflect the expected return on plan assets.Meanwhile, the International Accounting Standards Board (IASB) has concluded work on its research project into discount rates and said it would not seek public feedback on a discussion paper dealing with the topic.In a paper presented to the board’s 21 March meeting, however, staff noted that the board “will be addressing project findings relating to existing requirements in its work on individual projects as appropriate.”IASB staff presented a draft research paper to the board on 21 January last year. The paper provided a summary of discounting across the whole of International Financial Reporting Standards (IFRS).Together with pensions accounting, discounting ranked as a priority for the board’s constituents during the board’s 2011 agenda consultation process, as well as during its latest consultation.The two main outputs from the project, staff said during the 21 March meeting, had been to provide a summary of discounting under IFRS and also to compile a list of issues for staff to consider when developing accounting requirements that involve discounting.
Since its inception in 2005, it has launched seven funds and several co-investments for 170 projects with a total value of €25bn.The transaction with ABP involves the entire holdings of the DIF II fund, which had been established in 2008 for a ten-year period. It comprises projects in western Europe.The deal also includes the cross-shareholdings of twelve assets in the €800m DIF III fund, which also covers projects in the US and Canada.Among the acquired projects are the DUO government building in Groningen, the Montaigne school in The Hague, hospitals as well as part of the A15, the main access road to Rotterdam’s ports.The deal also includes €125m of solar and wind farms in France and Germany, which provide energy to 120,000 households.Commenting on the transaction, Corien Wortmann-Kool, ABP’s chair, said that the investment was important to the scheme’s ESG policy for three reasons.“We invest in local infrastructure, extend our stake in solar and wind power and also contribute to the UN’s Sustainable Development goals.”She said the package would provide “solid and stable returns for ABP’s 2.9m participants for the long term”.ABP has been actively looking for investments that combine good returns with solutions for social and environmental issues for several years.It said 57% of the acquired projects contribute to sustainable development goals.DIF said it had mandated Campbell Lutyens and Loyens & Loeff as financial and legal advisors, respectively.It added that APG, ABP’s asset manager, had requested DIF to continue managing the portfolio through a new investment vehicle for a 25-year term.APG and PGGM last week said they have developed a “taxonomy” of investment opportunities linked to 13 of the United Nations’ 17 Sustainable Development Goals. The €389bn Dutch pension fund ABP has bought 48 projects from the Dutch Infrastructure Fund (DIF) in a €700m deal.The investment contributes directly to the civil service scheme’s target – set in 2015 – of doubling its investments in sustainable development to €58bn in 2020, ABP said in a statement.As at the end of 2016 these investments amounted to €41bn.DIF is a €4.2bn Schiphol-based independent specialist investment group, focusing on infrastructure assets in the Netherlands and abroad.
Source: Fabrizio PaganiFabrizio Pagani (right) meets US president Barack Obama in 2013Muzinich & Co – Fabrizio Pagani has joined the fixed income asset manager in the newly created position of global head of economics and capital market strategy.The former head of office for the Italian minister of finance, Pagani will split his time between Paris and London, and is charged with the development of new strategies and investment programmes to “expand the firm’s global franchise”, Muzinich said.Pagani’s previous experience includes stints as G20 sherpa and senior economic counsellor to Enrico Letta, Italian prime minister from 2013 to 2014. He has also worked for the OECD.BlackRock – The world’s largest asset manager, with $6.3trn of funds under management, has appointed Henri Chabadel as its chief investment officer for France. Based in Paris, Chabadel joins from Groupama Asset Management, where he was head of multi-asset and financial engineering. The company said Chabadel would work to “provide local clients with more direct and tailored access to the global investment and portfolio construction expertise and specialised insights”.Aviva Investors – The £315bn asset management arm of the Aviva Group has appointed Al Denholm as chief investment officer, solutions. Reporting direct to CEO Euan Munroe, Denholm will also form part of the group’s executive team. Denholm joins from Prudential Portfolio Management Group, a £185bn division of the Prudential Group that he founded. His previous experience includes stints at BlackRock and ING Investment Management.Franklin Templeton – Jennifer Ockwell has been appointed as the US asset manager’s new head of UK institutional, effective 2 July. She was previously head of UK institutional at Janus Henderson, and has also worked at Threadneedle and Deutsche Asset Management.Since April 2017, Jennifer has been a member of both the advisory board and steering committee at the Diversity Project, which seeks to improve the diversity of the workforce in the investment sector and more broadly in financial services. Ockwell is also a former trustee of the Henderson Group Pension Scheme.Vanguard – Simone Rosti has joined the $5trn asset management group has head of Italy. Based in London, Rosti joins from UBS Asset Management where he had been head of passive and ETF sales for Europe, having previously worked for iShares and BlackRock. Rosti’s appointment is the latest in a line of senior ETF hires designed to boost Vanguard’s profile in the European markets, the company said.BNP Paribas Asset Management – The French asset manager has appointed Fabien Madar as co-head of distribution for Europe, covering southern Europe as part of BNP Paribas’s global client group, the company’s worldwide sales and marketing division.Reporting to Sandro Pierri, global head of client group, Madar will join in July from Pioneer, where he has been general manager and head of institutional business. Standards Board for Alternative Investments (SBAI) – The standard-setting body for hedge funds and other alternative asset managers has appointed two new board members. Stuart Fiertz, co-founder and president of Cheyne Capital Management, and Richard Lightburn, CEO of New York-based MKP Capital Management, have joined with immediate effect. The SBAI has approximately 200 alternative investment managers and institutional investors as members, which collectively manage $3.5trn. VvV – The Dutch Association of Insurers (VvV) has appointed Willem van Duin, chairman of Achmea, as its new chairman for the next two years. He succeeds David Knibbe, chief executive of Nationale Nederlanden, who chaired the VvV during the past two-and-a-half years.Invest Europe – Nenad Marovac, founder and managing partner of early stage venture firm DN Capital, has succeeded Marta Jankovic of APG Asset Management as chair of the private capital organisation, formerly known as the European Private Equity & Venture Capital Association. “Venture capital is no longer just about Silicon Valley and Boston – European VC is now making waves,” said Marovac.Russell Investments – Robert Hostetter has been appointed to the newly created position of global head of product. He is responsible for the development of investment solutions across Russell’s global operations. Hostetter was previously at AllianceBernstein, where he served as managing director and global head of product strategy. He has also worked at William Blair Investment Management, leading its move into alternatives and multi-asset investment, and at McKinsey.New Zealand Super – The Board of the Guardians of New Zealand’s NZD38bn (€22.5bn) sovereign wealth fund has promoted Matt Whineray to CEO, effective 1 July. He has been chief investment officer at the fund since 2014, and was acting CEO since March following the departure of Adrian Orr. Whineray has worked for the fund for 10 years since joining as a private markets manager in 2008.BlueBay Asset Management – The specialist fixed income manager has appointed Sid Chhabra to the new position of head of structured credit and collateralised loan obligations (CLOs). Chhabra, who joins from Anchorage Capital Europe, will be based in London as part of the developed markets team. He will head an initiative to establish and manage a new range of BlueBay global structured credit and asset-backed security (ABS) strategies.Hermes Investment Management – Ingrid Holmes and Kate Fowler have joined the £34bn asset manager’s responsibility office. Led by Leon Kamhi, the division oversees the implementation of the firm’s responsible investment and stewardship policies. Holmes joins from E3G Third Generation Environmentalism, where she was a director, while Fowler moves from non-profit group A Blueprint for Better Business, where she worked on environmental, social and corporate governance issues.State Street – The US financial services giant has named Maria Cantillon as head of sector solutions for Europe, the Middle East and Africa (EMEA). She was previously global head of alternative asset manager solutions at the company. In her new role she will lead the sales strategy for the firm’s “most important prospects and clients in the region”, State Street said.In addition, State Street has hired Geoff Pullen from Standard Chartered as managing director for the alternatives sector in the EMEA region. He will report into Cantillon and be responsible for his team’s sales strategy for hedge funds and private equity. At Standard Chartered he led transaction banking and securities services sales for asset manager clients.JP Morgan Asset Management (JPMAM) – Rob O’Rahilly has joined the asset management arm of JP Morgan as global co-head of asset management solutions. Based in London, O’Rahilly spent more than 20 years at JPMorgan Chase where, most recently, he was chief investment officer for EMEA and Asia. At JPMAM, he will work alongside Mike O’Brien, who continues as global co-head of solutions. BMO Global Asset Management – James Edwards has joined the asset manager as a director in the UK institutional sales team. Edwards, who has moved from BlackRock, will have a particular focus on corporate pension schemes and charities. His previous experience includes stints at BNY Mellon and Scottish Equitable. BBC, PGGM, Muzinich, BlackRock, Aviva Investors, Franklin Templeton, Vanguard, BNP Paribas AM, SBAI, Invest Europe, VvV, Russell, New Zealand Super, BlueBay, Hermes, State Street, JPMAM, BMO GAMBBC Pension Trust – Catherine Claydon has been appointed to the board of trustees of the UK broadcaster’s £16bn (€18.2bn) pension fund, with a view to taking over as chair next year, succeeding Bill Matthews.A former investment banker, Claydon currently sits on the board of the Barclays UK pension scheme and was appointed as a trustee of the new British Steel Pension Scheme earier this year. She has also previously sat on the boards of the BT Pension Scheme, where she was deputy chair, and Unilever’s UK pension fund.PGGM Coöperatie – The board of PGGM Coöperatie – Dutch asset manager PGGM’s parent company – has appointed Jet Bussemaker as its chair. As of 21 July, she will take over from Frank de Grave, who has completed his maximum term of eight years. Bussemaker was minister for education, culture and science in the Netherlands between 2012 and 2017, and state secetary for health, wellbeing and sports from 2007 to 2010.The board emphasised the importance of Bussemaker’s governance experience and her knowledge of the care and wellbeing sector, as well as her experience of working in a complex organisation.