ILIM's new pension business up €3.6bn

IRISH LIFE Investment Managers (ILIM) has written €3.6 billion in new pensions business so far this year and expects this figure to reach €4 billion by the end of 2011.

This would make it a record year for the investment manager in spite of the difficult external economic backdrop. ILIM now manages about €31 billion of client assets.

Gerry Keenan, ILIM’s chief executive, said the new business reflected a switch away from equities and into bonds by defined benefit pension schemes as they seek to minimise their exposure to risk.

“Over 75 per cent of DB schemes are now closed to new entrants and they’re reducing their equity weightings and buying bonds to close off the risk,” Mr Keenan said.

“They’re matching cash flows towards liabilities. We have been very strong in that market.”

Figures for the first half of the year from the Irish Association of Investment Managers show that ILIM has increased its market share from 31 per cent to 32.8 per cent.

In response to the growth, ILIM has beefed up its investment team. The company has hired Richard Kelly, a portfolio adviser from State Street in Dublin, and John Thornton, a bond manager with UBS.

A third senior hire is expected to be announced this week.

ILIM is part of Irish Life & Permanent, the life and banking group now effectively controlled by the state.

It is due to be restructured with Irish Life currently on the blocks for sale.