Danske Bank has awarded Goldman Sachs Asset Management a $1.6 billion emerging market debt mandate previously run by ING Investment Managers.
The Nordic investment firm’s emerging market debt capabilities will be overseen by a London-based team run by Samuel Finkelstein, Goldman Sachs AM’s head of emerging market debt.
Danske Bank said the mandate had previously been run by ING Investment Managers but it had opted to hire a new manager following recent upheaval.
The ING IM EMD unit had been subject to large-scale changes with the bulk of the department defecting to Neuberger Berman over the first six months of this year.
While Neuberger Berman has now launched its first funds for this team, which is led by former ING IM duo Rob Drijkoningen and Gorky Urquieta, Dankse did not opt to move its money across to the new proposition.
Speaking to Citywire Global, Robert Mikkelstrup, head of global fund products at Danske Bank, said: ‘We made the decision not to follow them because they need time to set up, get their processes in place and decided it was a good time to look at our options.’
‘We decided to go out and search the market with an open mind. We don’t believe that a new team would be set-up and ready to go from day one.'
Mikkelstrup said Danske Bank had therefore opted to work with Goldman Sachs due to its strong reputation and also the growing capabilities in the emerging market debt sector.
‘They have a solid team, even though it does not have a very long track record. But they are very experienced in general and we particularly like some of the process they have in place, such as their work on risk management,’ he said.
Goldman Sachs AM said the mandate win would serve to highlight the firm's capabilites in the asset class.
Nick Phillips, head of third market distribution for EMEA, said: ‘EMD is now a core asset class and its importance is growing. We’re delighted to be working with Danske and helping to provide its clients with investment solutions.’