UK - The £1.4bn Metal Box Pension Scheme has awarded PIMCO Europe a £100m bond mandate as part of an ongoing review of its entire scheme.
The mandate will be benchmarked against UK bonds, including fixed income, index-linked and corporate, and an allocation to global high yield bonds, hedged into sterling.
Philip Read, UK pensions manager, Metal Box, said the scheme’s other bond managers - Western Asset Management and Merrill Lynch Investment Managers - each manage about £335m.
He said the scheme had no current plans to appoint additional managers.
The scheme’s total benchmark allocation to bonds is 52%. The PIMCO mandate will target excess returns of 1.5% to 2% per annum relative to the benchmark.
Commenting on the appointment, Paul Craven, PIMCO’s head of UK institutional business development, said: “As a specialist fixed income manager, PIMCO offers the Metal Box trustees a depth of resources and longstanding investment experience, which has led to consistency of outperformance in this important asset class. The appointment further reinforces our total commitment to the institutional UK pensions industry.”
Watson Wyatt advised the scheme on the manager search.
The Cost Transparency Initiative (CTI) has launched a number of templates and guidance to help pension schemes deliver greater value for savers with enhanced disclosure of transaction cost information.
Kim Kaveh asks if trustees should be subject to maximum term limits for a particular scheme, after a PP poll showed mixed views on the matter.
In this week's Pensions Buzz we would like to know if you welcome the gentle hand of advanced supervision by The Pensions Regulator (TPR), after Charles Counsell said there will be new regulatory initiatives for 1,000 schemes.
Here they are - the finalists for the Women in Pensions Awards 2019...