Dublin-based Kleinwort Benson Investors seems to be keeping its head well above water as the economic storms continue all around. The boutique investment company, headed by Sean Hawkshaw, is patting itself on the back after securing a mandate from one of the US's powerful state employee retirement funds – the €25 billion Pennsylvania State Employees' Retirement System. The $150 million allocated to KBI will be invested in emerging-market equities, with Hawkshaw upbeat about markets these days.

“Restoring economic growth is now the primary goal of central banks and, as a result, they have a tolerance for higher inflation,” he says.

The investment win will keep KBI on its toes, with US state employee pension schemes no different from comparable structures elsewhere – the Pennsylvanian fund is facing a funding gap worth billions of dollars that the Irish manager and its peers will be under pressure to fill.

Ongoing battle
Underlining this is an ongoing battle in the state over plans by its governor, Tom Corbett, to reform the public pensions scheme. Luckily, KBI will not have to worry about the politics.

The company has also seen recent investment wins from names including Merrill Lynch and CIBC. Hawkshaw is optimistic that its newly approved 24 per cent investment from Nasdaq-listed Virtus Investment Partners will push the door open further into the US mutual funds market.