Key Takeaways
- • Mergence Investment Managers is contesting in court the Municipal Employees Pension Fund's (MEPF) decision to terminate two of its investment mandates late in 2023, according to Citywire.
- • The terminated mandates covered about R6.6bn of the fund's assets, a figure that headlines round to R7bn.
- • The dispute is part of a broader set of legal and regulatory battles involving the MEPF, including a separate conflict with the Financial Sector Conduct Authority (FSCA).
- • Mergence has denied allegations made in the dispute and has countered with accusations that the fund's principal executive officer furthered her husband's interests, per reporting on the case.
Summary
Mergence Investment Managers, a Cape Town-based asset manager, is fighting the Municipal Employees Pension Fund's decision to terminate two of its investment management mandates late last year, according to Citywire. The mandates covered about R6.6bn of the fund's assets, which Citywire and other outlets have described as a R7bn mandate.
The fund cited the termination of the mandates as the basis for the dispute, and Mergence has contested the decision in court. Headlines covering the matter describe a "war" over control of the R7bn in municipal pension assets. Mergence has denied the charges made against it and has responded with accusations that the fund's principal executive officer furthered her husband's interests.
The MEPF is also engaged in separate legal proceedings with the Financial Sector Conduct Authority and Mergence, which reporting links to a wider set of governance and regulatory issues at the fund. Available coverage does not provide detail on the court timetable or a final ruling, and the full Citywire article could not be retrieved, so specifics beyond the headline and summary material remain limited.
The fund cited the termination of the mandates as the basis for the dispute, and Mergence has contested the decision in court. Headlines covering the matter describe a "war" over control of the R7bn in municipal pension assets. Mergence has denied the charges made against it and has responded with accusations that the fund's principal executive officer furthered her husband's interests.
The MEPF is also engaged in separate legal proceedings with the Financial Sector Conduct Authority and Mergence, which reporting links to a wider set of governance and regulatory issues at the fund. Available coverage does not provide detail on the court timetable or a final ruling, and the full Citywire article could not be retrieved, so specifics beyond the headline and summary material remain limited.
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