UK - Schroders has lost approximately £100 or 30% of the assets previously managed on behalf of the £310m Pennon Group Pension Scheme after a portfolio restructure which saw it move away from its multi-asset manager model.
Prior to the restructure, advised by Hewitt Associates, the fund had two multi-asset managers - Schroders managing 30% and UBS 70% of the assets.
Under the reshuffle, three new managers have been brought on board, with Invesco Perpetual and Société Générale Asset Management (SG AM) each handling high alpha equity portfolios worth 15% of the fund’s equity allocation.
The transition also saw the creation of a currency portfolio for 5% of the assets, with the mandate awarded to Record Currency Management.
UBS maintained its stronghold, having been awarded a high performance global equity mandate worth 25% and responsibility for the bonds portfolio, worth 35%.
Schroders maintained a small hold within the scheme, with 4% of the property portfolio managed by UBS and Schroders managing the remaining 1%.
“The trustees felt this was the right way to go in an attempt to reduce risk and increase return,” said a spokesperson for the pension fund. He noted that the transition took place in April and the situation was now beginning to settle.
By Angele Spiteri Paris
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