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.
In this week's Pensions Buzz survey, we want to know whether or not you agree with Lord Myners' opinion that asset owners, such as pension funds, are substantially to blame for short-termism in business.
The combined funding level decreased by just over four percentage points by the end of last month to 93.6%, according to the Pension Protection Fund's (PPF) latest update.
Plastics manufacturer Carclo has missed yet another dividend as it continues to battle its defined benefit (DB) pension funding shortfall.