UK - TUI Pension Scheme, the £200m pension fund of travel company TUI, has slashed its exposure to UK equities by 13% and has also sacked Deutsche Asset Management and Insight Investment as its asset managers.
Following an investment review, the pension fund decided to reduce its equities exposure to 80% from 83.7%, cutting UK equities down to 40% from 53.7% and increasing overseas equities to 40% from 30.3%.
UBS has been retained to act as specialist manager to run assets worth around £80m in UK and overseas equities, while Legal and General has been hired as an indexed equity manager to manage assets of around £80m.
Legal and General has also been appointed to to run a £20m bond mandate.
The pension scheme has appointed Barclays Global Investors to manage the fund’s short-term cash deposits.
“The trustees investment strategy aims to strike a balance between risk and reward that will build up enough resources to pay benefits for all managers when they retire,” said the pension fund.
Over 2004, the scheme’s investments rose by 24.8%, a growth that was below the average for UK pensions schemes of 25.4% over the same period.
Hewitt Bacon and Woodrow acted as investment advisors to the fund.
Partner Insight: A fiduciary management approach gives trustees a richness of information you can't get with a standard adviser approach, especially in times of market uncertainty, explain Russell Investments' David Rae and Paul Wharton
The PPI has unveiled a policy paper outlining current considerations and policy debates relevant to DC scheme default strategies. Kim Kaveh explores some of its views.
The £30bn local government pension pool has appointed Quoniam and Robeco to manage an active equity portfolio worth around £400m.