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.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.