UK- The £1.1bn Granada Group Pension Fund has awarded Henderson Global Investors £250m in bonds.
Group pensions manager and secretary Annette Scott Hendersons had been mandated to run 22.5% of the fund in fixed income. One quarter of the brief is benchmarked to the FTSE 15-year gilt index while the remaining 75% is benchmarked to the Merrill Lynch 15-year UK corporate bond index. Hendersons will also have discretion to invest in overseas bonds.
Hendersons was chosen from a shortlist of three, said Scott, particularly because of its fee basis, process and personalities. The £250m will be drawn equally from the equities portfolios of the scheme’s existing managers.
Previously, the scheme was invested 100% in equities, using: Black Rock International; Jupiter Asset Management; Legal & General Investment Management; Merrill Lynch Investment Managers; Schroder Investment Management; Societe Generale Asset Management; and State Street global Advisors.
Changes in scheme demographics have left Granada with a significant reduction in the number of active members compared to the total membership.
William M Mercer advised on the move.
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