AUSTRALIA - The A$5.9bn Commonwealth Superannuation Scheme (CSS) and the $7.7bn Public Sector Superannuation Scheme (PSS) board has appointed Brandywine Asset Management to manage its global fixed interest mandate.
The CSS scheme was closed to new members from 1 July 1990 and the PSS scheme was then opened all members after that date.
The CSS and PSS Funds each have an 18% strategic allocation to fixed interest, split between mandates with, Mondrian International Advisers, Blackrock Financial Management, Brandywine AM and Bridgewater Associates.
PSS/CSS CIO, André Morony, said: “Our fixed interest line-up represents a diversification of investment styles to tap into different sources of excess returns and thereby maximise the likelihood of consistently strong returns. Brandywine complements the line-up with its focus on real interest rates and a very active management style.”
Brandywine will be benchmarked against the Citigroup World Government Bond Index (ex-Japan) fully hedged to the Australian dollar.
JANA Investment Advisers were the consultants on the mandate process.
The CSS/PS asset allocation includes 30% in Australian equities, 20% international equities, 15% property and 10% international bonds.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) have launched a refreshed ScamSmart campaign to warn savers about unsolicited pension communications.
Ann Harris OBE and Mike Dailly have been appointed non-executive directors at the upcoming single financial guidance body (SFGB).