Fleming loses more investment business

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The Independent Online
FLEMING Investment Management has suffered a second blow in as many months with the decision of Reed International, the publisher, to switch the management of part of its pounds 836m pension fund to Barclays de Zoete Wedd Investment Management.

In July it emerged that Fleming, part of Robert Fleming, the merchant bank, had lost the management of a pounds 600m portion of Unilever's pounds 2.46bn pension fund.

Reed confirmed last week that its pension fund intended to buy some units in BZWIM's indexed funds. These are designed to perform in line with the market rather than outperform it.

Reed's switch, believed to affect nearly pounds 100m, brings the total new business won by BZWIM in the past six weeks to pounds 2bn.

The move reflects growing interest in indexation, partly because of disappointment with the performance of traditional fund managers.

The last National Association of Pension Funds survey found that about pounds 20bn of UK pension fund money was indexed. Performance at Fleming, which managed pounds 7.45bn pension fund money and pounds 18.6bn in all at the start of the year, was above the industry norm last year but its five-year record is undistinguished.

Its average fund made a return of 19 per cent last year against the industry's average of 16.9 per cent.