The Bekaert Group has filed a suit against asset management firm Petercam for alleged incompetent management of the firm's pension fund fixed income investments

According to the Belgian metal giant, the Bekaert scheme has lost "several millions" as a direct result of Petercam's strategy.

The company is claiming that Petercam was able to present good results for many years for its bond mandate as it invested frequently in high-risk corporate bonds, such as 100-year bank bonds. Once the financial crisis erupted, Bekaert says the fund lost several million Euros in the period between 2008 and 2009.

According to the latest data held by Pension Funds Online, the scheme is worth €66m.

The mandate with Petercam has now been terminated. The metal company has demanded that the asset manager makes up for the losses, but attempts to settle out of court have failed so far.

Talking to Belgian newspaper De Morgen, Marc Janssens,a board member at Petercam, said: "For years it's all fine as long as we get good returns. Then suddenly the markets turn and the manager is told to pay out. If this is the way the sector works nowadays then I have my doubts about this."

Bekaert feels it has a strong case as the asset manager has already been convicted in a similar case a couple of years ago which was brought on by the Inno pension scheme which said the asset manager lost it €2.29m.


azeevalkink@wilmington.co.uk