UK - Barclays Global Investors has lost out at the London Borough of Hackney Superannuation Fund following an investment strategy review carried out by Hymans Robertson and Watson Wyatt.
Axa Rosenberg Investment Management, Allianz Dresdner Asset Management, UBS Global Asset Management and ISIS Asset Management have all been added to Hackney’s roster. Credit Suisse Asset Management has also been reappointed.
The near £350m fund has joined the raft of local authority funds choosing specialist management in a bid to diversify risk.
Based on Hackney’s 2002 capital value of about £341m, BGI managed a £172m global balanced mandate; around £115m was held inhouse on a passive basis and Credit Suisse handled £54m in a segregated property account.
Axa Rosenberg and Allianz Dresdner will now oversee active global equities valued at 25% of the fund each; UBS has been awarded an indexed UK equities brief (20%); and specialist bonds (17%) go to ISIS.
But the fund decided to retain its existing property brief, although this will be reviewed during May when the investment committee is likely to opt to retender for a pooled arrangement.
David Luck, acting head of treasury, insurance and pensions at Hackney, explained that the original tender process threw up many “high performing” pooled managers who had to be rejected on that basis.
A fresh tender is likely to be put out during the summer worth 13% of the fund.
The new contracts are for three years. The fund was advised by PSolve’s Val Burdett-Callen.
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On balance the asset class is well-positioned for 2019, according to Eaton Vance