UK - UBS Global Asset Management and Capital International have secured mandates with the BAA Pension Scheme following a full tender process.
The £2bn scheme for UK airport operators has awarded a £200m global equity mandate each to the firms.
Capital was not available for comment. But UBS said that its assets would be invested using its Global Optimal investment strategy which takes an industry- as opposed to country approach.
Commenting on the win, UBS’s chief investment officer Mathew Stemp said: This announcement is a real vote of confidence for UBS and follows a rigorous election process undertaken by the trustees and their advisors. We have been able to demonstrate to the trustees of BAA Pension Scheme our global research platform, unique risk systems and excellent long term performance. These continue to be important factors for new and existing clients. This is an important new mandate for us.
BAA was not available for further comment during press time. But reports insist that the move was strategy-driven and not due to performance concerns over MLIM. It is believed that the fund decided to nearly halve its UK equities allocation to 35% and double its bond investments to 30%. State Street Global Advisors and Fidelity, who already hold bond mandates for the fund, are understood to have had their assets increased to around £550m each.
Neverthless the news will still come as a blow to MLIM, following a period of relative calm, having taken several batterings to it pension manager profile earlier this year.
According to some estimates MLIM has lost some £2.5bn in pension assets since January, including big names such as the Cooperative Group, Provident Financial and Scottish & Newcastle.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.