UK - The Co-operative Group's £2bn CWS Pension Fund has rehired Merrill Lynch Investment Managers after reaching an out-of-court settlement to its "poor performance" law suit.
CWS ended its 30-year relationship with MLIM – formerly known as Mercury Asset Management – 12 months ago when it sought legal advice over the fund manager’s performance.
But the scheme has now rehired MLIM to run an as yet unspecified mandate, following the court settlement and an investment review.
Co-operative Group secretary and fund trustee Nick Eyre said: “On behalf of the trustees I can confirm that we have resolved our dispute with MLIM amicably.
“As a result of this agreement, we will be resuming our business relationship with MLIM.”
As part of its investment review conducted by Watson Wyatt, the scheme has also decided to appoint Lazard Asset Management, Bank of Ireland Asset Management, Western Asset Management and State Street Global Advisors to as yet unspecified mandates.
The scheme’s current managers Legal & General Investment Management, Deutsche Asset Management, Fidelity Investments and LaSalle Investment Management will be retained.
CWS’s fixed income allocation will remain at 35%, equities has been reduced from 60% to 55%, while its property weighting has been increased from 5% to 10%.
The Howden Group Pension Plan has completed a full pensioner buy-in with Legal & General (L&G), insuring benefits for around 2,000 members.
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