UK - The £240m Royal Borough of Kensington and Chelsea Superannuation Fund is set for an overhaul following a review of its current investment and custodian arrangements.
Last year IPN revealed that Kensington and Chelsea was mulling a move to review the equally held balanced portfolios between Henderson Global Investors and Baillie Gifford. It is understood that both investment managers reach the end of their contracts later this year. The fund said that more than one portfolio is envisaged, although no firm decision had been made on strategy, which could be core satellite, all specialist, balanced, indexed, or a combination. The find may or may not use a strategic asset allocation manager. Subsequently, an exact benchmark and the potential to add value relative to the benchmark will be discussed with the prospective managers.
The start for new contracts is expected to be December 1. The length of the contract is as yet undetermined.
The local authority fund is also tendering for a global custodian. At present HSBC is the fund’s sole provider. The new contract will start on August 1 with a duration of seven years and an option of a break at five years.
The deadline for both applications is March 25, 2002.
The moves are being advised by Sector Treasury Services.
By Madhu Kalia
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).