Sunday 22 April 2018

The senior bondholders

'SENIOR bondholder' is an obscure term that conjures up images of very little for most people.

However, dig deep into Anglo's senior bondholder group and you'll find investors that we can all easily recognise, such as pension funds, commercial companies, trade associations and even churches.

While those investors are relatively ordinary in their own right, they group together to form extraordinarily powerful asset-management groups, with hundreds of billions of euro under management.

Union Investment Luxembourg

One of the largest known holders of Anglo senior bonds, Union Investment Luxembourg, is part of the German asset-management group Union Investments, which controls €169bn of investments. Clients range from banks and pension funds to churches, charities and trade associations. The group invests in all kinds of assets, including government bonds, corporate bonds, shares and alternative investments.

Union's Irish portfolio includes senior debt with Anglo, AIB and Bank of Ireland, as well as government debt.

Erste Sparinvest

Manages a portfolio worth €27.4bn. Most of this, about €16.16bn, is invested on behalf of ordinary retail investors, while the rest is for 'large-scale' investors and special purpose vehicles.

Erste Sparinvest is the market leader for Austrian retail investors, with 25pc of the total market.

As well as Austrian sales, Erste also sells in 11 other European countries. The asset manager is part of the bigger Erste Bank Group, which boasts 17.5 million customers.

Pioneer Asset Management

Founded in 1928, Pioneer has assets under management that are worth €185m. Its footprint stretches across 29 countries, including a global-investment centre in Dublin, which is also a recruitment hub for the UK, Russia, India and the Asia Pacific Region.

Pioneer is part of the UniCredit banking group, which has more than 12,000 branches worldwide and employs more than 162,000.

  • Source on senior debt holdings: Bloomberg data.

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