UK - The £1bn P&O Pension Scheme has appointed Muzinich to manage a £50m global high yield bond portfolio.
The appointment by the worldwide transport and logistics company follows an asset allocation review assisted by actuary Watson Wyatt.
P&O Pension Scheme secretary Rita Powell said: “Like many other schemes we wanted to invest a portion of our funds in a return-seeking asset class that was potentially less volatile than equities and provided diversification.
“High yield bonds and the experience of Muzinich in focusing on this asset class appeared to fit the bill.”
Muzinich head of institutional marketing Francis Paxton commented: “There has been a huge surge of interest in high yield bonds from UK pension funds.
“We anticipate that this movement will gather momentum as investors increasingly recognise that the asset class can potentially generate both strong returns, and can also act as a portfolio risk diversifier relative to equities and other bond classes.
Muzinich manages over £100m for four UK pension schemes, and has over Us$3.6bn (£2.23bn) assets under management in total.
Its client base largely includes European pension funds, insurers, multi-managers and banks.
A suite of liability driven investment (LDI) indices has been launched by STOXX and RiskFirst to aid trustees and consultants select, monitor and challenge managers.
British Airways and the trustees of one of its pension schemes are set to argue over the purpose of a pension scheme, leading to an impactful judgment for DB pensions. James Phillips explores the issue
Bank of England governor Mark Carney has said there is still a lot of data to consider before the Monetary Policy Committee (MPC) can decide when to next hike interest rates.
Savers are not squandering their tax-free lump sums under Freedom and Choice but are taking a more cautious approach to retirement, according to Prudential research.