UK - Oil giant ChevronTexaco has reorganised its fund manager selection following the merger of its two defined benefit pension schemes.
Chevron and Texaco merged in October 2001 and the combined company completed the merger of its two UK-based schemes – the £454.1m Texaco Pension Plan and the £306.8m Chevron Group UK Pension Plan – earlier this year.
ChevronTexaco benefits department project director Ted Sohar said an asset liability study was conducted for the new scheme at the end of the first quarter, 2003.
It recommended that the scheme should drop its passive managers and move entirely to active management.
The old Texaco and Chevron schemes were 68.6% and 64% invested in equities respectively, with the remainder in cash and fixed income.
Sohar said the new scheme had a similar asset allocation mix that was broadly similar to its two predecessor schemes, but with a slightly higher exposure to international equities.
As part of the reorganisation, the £761m ChevronTexaco Pension Plan has hired Credit Suisse Asset Management to run a £70m fixed income mandate.
CSAM will run their mandate against a composite benchmark composed of long-dated gilts, index-linked gilts and credit.
Aside from CSAM, the firm has also hired GMO to run an unspecified UK equity brief.
Sohar declined to reveal the names of the other fund managers appointed following the reorganisation.
The Chevron and Texaco schemes’ used Legal & General Investment Management, Merrill Lynch Investment Management, Schroder Investment Management, Allianz Dresdner Asset Management and State Street Global Advisors.
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