UK - The £17.2bn Royal Mail Pension Fund has dropped Deutsche Asset Management and hired Edinburgh boutique Walter Scott & Partners and Alliance Bernstein as part of a manager re-shuffle.
In a bid to reduce its £6.3bn funding deficit, the fund has also added a new asset class to its portfolio - global unconstrained equities.
According to the fund’s annual accounts report 2004-2005, 5% has been allocated to the new asset class, increasing the fund’s equity exposure, which currently lies at just under half of its total assets (49%).
The scheme also transferred a passive mandate managed by Hermes into a unit-linked insurance policy with Hermes Assured.
The changes to the investment strategy were intended to enhance the fund’s investment strategy, the report noted.
Royal Mail’s funding level increased 1.5% to 85.1% from 2003. The report claims the main factors effecting the change were “favourable” investment market returns and additional employer contributions.
The Co-operative Group's Somerfield Pension Scheme has completed a buy-in with Pension Insurance Corporation (PIC), insuring the benefits of its pensioner members.
Caroline Rookes CBE and Michele Hirons-Wood have joined The Pension Superfund's board of trustees to focus on maintaining governance standards and safeguarding member benefits.
The first specialist independent firm advising pension schemes on bulk annuities or moving to a consolidator has been set up with ambitions to shake up the market.