Steamship Mutual Underwriting ASSN Trustees (Bermuda Ltd) & Anor v Baring Asset Management Ltd, Court of Appeal - Commercial Court, February 13, 2004, [2004] EWHC 202 (Comm)
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Steamship Mutual Underwriting ASSN Trustees (Bermuda Ltd) & Anor v Baring Asset Management Ltd, Court of Appeal - Commercial Court, February 13, 2004, [2004] EWHC 202 (Comm)
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Neutral Citation Number [2004] EWHC 202 (Comm)IN THE HIGH COURT OF JUSTICEQUEENS BENCH DIVISIONCOMMERCIAL COURTRoyal Courts of JusticeStrand, London, WC2A 2LLDate: 13th February 2004Before :THE HONOURABLE MR JUSTICE AIKENS- - - - - - - - - - - - - - - - - - - - -Between :- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - -Kenneth MacLean QC (instructed by Mayer Brown Rowe & Maw) for the ApplicantsLaurence Rabinowitz QC (instructed by Slaughter and May) for the RespondentHearing date : 6th February 2004- - - - - - - - - - - - - - - - - - - - -JudgmentMr Justice Aikens : 1. This is an application for pre - action disclosure pursuant to section 33(2) of the Supreme Court Act 1981, as amended, and CPR Part 31.16. The two applicants are Steamship Mutual Underwriting Association Trustees (Bermuda) Ltd (``the Trustee'') and Hamilton Investment Management Limited (``Hamilton''). The first applicant is the corporate trustee of the Steamship Mutual Trust, which has been referred to as ``The Fund'' in this application. The second applicant manages that Fund. The Fund's principal business is the reinsurance of two P&I Clubs that are run by the well - known Steamship Mutual group of P&I Clubs.The Background Facts 2. The assets of the Fund are managed by external fund managers. The respondents, (``BAM''), were engaged as one of the Fund's asset managers from 1988 until 2001. There were two other asset managers at the relevant time. They were Brown Brothers Harriman & Co and Goldman Sachs Asset Management Limited, (``Goldman Sachs''). BAM managed about 50% of the assets of the Fund during the period of its appointment as fund manager. I will refer to the part of the Fund that was managed by BAM as ``the portfolio''.3. The contract that governed the relationship between BAM and Hamilton was signed on 24 July 1997. It is called an Investment Management Agreement: ``IMA''. At the date of the IMA the value of the portfolio managed by BAM on behalf of the Fund was about US$ 210 million. The IMA provided that BAM would manage the portfolio entrusted to it with a view to obtaining various investment policy objectives. These objectives included the out- performance of a specified index, which provided a benchmark, by 200 basis points, or 2%, on a rolling quarter basis. 4. In 2000 and 2001 the world's stock markets were volatile. The dizzy climb of Technology, Media and Telecoms shares in particular was halted and then they fell rapidly. This decline had an effect on the value of all stock market indices and all benchmarks. But in the 12 months up to 20 Febru...See the full content of this document
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