UK - The £1.9bn J. Sainsbury Pension and Death Benefit Scheme has revealed its best and worst performing fund managers.
Managers which performed below their benchmarks in the third quarter include Capital International – which runs emerging market and European equity briefs totalling £98m – and Deutsche Asset Management which runs a £143m global fixed income brief.
Managers which performed above their benchmark included State Street Global Advisors (£117m US equities), Black Rock (£71m Europe ex-UK equities) and Deutsche Asset Management (£86m UK fixed income).
The scheme has also revealed the details of its £200m switch from UK equities into global bonds which took place this April.
Fischer Francis Trees & Watts and Pimco were both awarded £100m mandates in global fixed income to be run on an active basis.The move takes Sainsbury’s asset allocation from an 80/20 equities/bonds split to 70/30.
The fund’s UK and global equities lost 17% and 23% of their value respectively in the first seven months of this year, while its bonds gained 4%.
Pensions manager Geof Pearson said the decision had been made both to better reflect the scheme’s liabilities and reduce potential risk to the sponsor company.
He added that the scheme’s plans to invest 5% in alternative asset classes – announced last year – is still on hold.
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