Denmark’s PenSam is to expand its in-house asset management team, after internal equity portfolios outperformed those overseen by third-party managers.Benny Burchardt Andersen, CIO at the DKK100bn (€13.4bn) pension provider for employees of Danish municipalities, said a decision reached in 2010 to increase the level of internal active management of equities had paid off – both in absolute and relative returns.He told IPE’s How We Run Our Money that the provider’s current approach to external equity managers was “close to being a passive strategy”, albeit with an enhanced mandate.“In other words, while the external managers are tracking companies, PenSam uses internal tactical management as a second layer incorporating its views on different regions, sectors and derivatives to generate alpha,” he said. “We have a strong view on what constitutes alpha and what constitutes beta in the equity portfolio, and, over the last few years, the estimated 1.5% outperformance, as opposed to the 1% generated by the best external managers between 2010 and 2013, was mainly a result of internal management decisions.”He said the outperformance had resulted in the decision to increase the size of its in-house management team.“We will add to the number of people working in active management both on a strategic and tactical level,” Buchardt Andersen said.“We will have to be extremely focused on creating outperformance in the future because, after two good years in equity markets, future returns and consequently pensions are going to be lower. In short, for us, active management equals outperformance.”Burchardt Andersen said internal staffing levels had already been increased in the area of direct lending, and that the high-yield bond team was also likely to grow.“The board needs to approve it first, but the risk is fair now, which is why we are moving into illiquid credit and investment-grade bonds,” he said.For more on PenSam, see How We Run Our Money in the current issue of IPE.
A magnificent unbeaten century by former Essequibo batsman, Basil Persaud, led Everest Masters to a convincing nine wicket victory over the visiting Guyana Foundation XI from the United Kingdom.Played at the Everest ground last Sunday, the Guyana Foundation (UK) won the toss and batted first in the 30 overs affair. They were led by an accomplished 82 (8x4s+3x6s) from Navindra Sing, along with a fluent innings of 38 (5×4) from Navin Persaud and Patrick Khan 22 with 3×4, as they posted 189-8 from their allotted overs.Former national opener Rohan Sarjoo this time took the ball and returned impressive figures of 3-22 from 5 overs while veteran off-spinner, Johnny Azeez supported with 2-31, while Rakesh Gangaram took 2-17.In reply host Everest Masters made light work with the total as Basil Persaud’s commanding 101 not out laced with 13×4 and 2×6 and former national youth batsman, Hemraj Garbarran with an unbeaten 57, including 7×4 and 2×6, dominated proceedings.The pair added an unbroken 145 run partnership as Everest Masters reached 192-1 in 27 overs to win by nine wickets.At the presentation, Basil Persaud was adjudged Man-of-the-Match and was presented with a Medal. Guyana Foundation (UK) also presented the Everest Cricket Club with a plaque in honour of former life member of the club, David Seloochan.Everest also returned the honours by also presenting a plaque to the visitors in recognition and appreciation of their visit to Guyana and for engaging the club in the well organized match. The plaque on behalf of the Everest Masters was compliments of Trophy Stall of Bourda Market.(Elroy Stephney)