UK - Buckinghamshire County Council pension fund has appointed five new managers to look after 23% of its £874m fund. Standard Life Investments has been appointed to a UK equity mandate to manage £76m of the scheme's assets, Alliance Capital was hired to a Global Equity Mandate managing another 8% of the Fund.
The council said in a statement it was reviewing its strategy in order to increase the diversity of its investments while also reducing risk.
The Fund is also increasing its allocation to alternative asset classes. “Cash /inflation plus” mandates each representing 2% of the Fund’s assets have been awarded to Blackstone Alternative Asset Management and Merrill Lynch Investment Managers.
Pantheon Private Equity has been appointed to manage £25m (3%) in a global fund of private equity funds.
Pension fund advisory chairman Frank Downes (pictured) said: “We are moving the Fund forward in order to take advantage of new investment opportunities and to better manage risk”. This increased spread of fund managers will allow us to manage this risk/reward balance more effectively.”
A spokesperson for the council declined to comment whether the previous managers were replaced over performance-related issues.
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.