Investment manager Frank Russell has won a £50m global equity mandate from the UK's £350m Express Dairies pension scheme.
The multi-manager mandate is a result of a strategic benchmark review that the scheme conducted. To fund the mandate, the scheme is transferring some money from current managers Deutsche Asset Management (DeAM) and Legal & General (L&G), as well as using spare cash from a recent scheme amalgamation.
According to Stephen Nichols, pensions manager at the fund, the transfer of cash from DeAM and L&G is not an indication of dissatisfaction with them, rather: we felt we needed another manager in the mix. The fund is being realigned - we are not unhappy with them.
Prior to the review, DeAM & L&G had the fund split equally between them. DeAM ran an active £175m mandate, whilst L&G ran £175m passively. Nichols said that following the review, the fund has also decided to raise its zero weighting in property to 7%, which DeAM will run.
By Geoffrey Ho
Here are key takeaways from our 2019 Asset Allocation Outlook on how we are positioning asset allocation portfolios in light of our outlook for the global economy and markets.
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