UK - Royal London Asset Management has won a £130m UK corporate bond mandate from the £4bn West Midlands Metropolitan Authorities Pension Fund.
The firm was selected from a shortlist of four and has been given a brief to outperform the Merrill Lynch non-government bond index by at least 0.5% per annum.
The mandate, which will be funded by the scheme’s cash reserves in mid-January, is worth approximately 3.25% of its total assets.
West Midlands’ finance and physical resources co-ordinating director Brian Bailey said the change follows an asset liability study conducted by the scheme, which saw it increase its in-house investment team’s allocation to corporate bonds.
The review also saw West Midlands appoint Bank of Ireland Asset Management, MFS Investment Management, and Putnam Investments, who will each run £60m in global equities.
The scheme was advised by Mercer Investment Consulting, Gartmore Investment Management and HSBC Actuaries and Consulting.
*RLAM’s parent company, has announced that it will make around 670 redundancies, following a review of its operations.
The firm said that the review was the direct result of the “1% world” and competition in the life assurance market putting pressure on its profits.
RLAM added that while it would be making staff redundant, it will be creating new jobs within certain areas.
Females can expect to live a greater number of years in poor health than males, according to data from the Office for National Statistics (ONS) for 2015 to 2017.
Scottish higher-rate taxpayers will benefit from more pensions tax relief than workers on the same salary anywhere else in the UK as income tax bands continue to diverge.
Schemes risk breaking the law and being forced to wind up as The Pensions Regulator (TPR) warns some may be master trusts but do not know so.
As a hectic 2018 draws to an end, Jonathan Stapleton wishes readers a quieter 2019.