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.
PP has analysed the accounts of the biggest pension consulting firms and recorded the turnover (revenue) in their most recent accounts. The full leaderboard is below…
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