UK Coal Mining has appointed Scottish Widows Investment Partnership (SWIP) to manage an active bond and cash management portfolio of approximately £17m of pension fund money.
The objective of the mandate is to add value whilst limiting the risk to capital value. Returns will be monitored on a rolling three year basis, net of fees. The portfolio will be invested in a mixture of money market instruments, gilts and eurobonds and will be managed by David Millar, investment director fixed interest (government bonds) and Duncan Thomson, senior investment manager, fixed interest (money markets).
Commenting on the appointment, Mel Garness, commercial director at UK Coal said: “We chose Scottish Widows Investment Partnership because of their investment expertise and in particular their considerable experience of managing cash portfolios.
“SWIP put together a package which was flexible for our needs, designing a risk profile which will achieve our core objective of preserving capital. We look forward to working with the team.”
By Janet Du Chenne
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