UK - Deutsche Asset Management is set to lose a balanced mandate worth £160m as the London Borough of Tower Hamlets pension fund seeks two new specialist managers.
The pension scheme is tendering for managers of a UK equity mandate and a bond mandate worth approximately £160m. The UK equity mandate is for approximately £75m, managed actively, said an official at the Tower Hamlets pension fund. The bond mandate is for approximately £85m. The equity mandate will represent about 15% of the fund’s £400m portfolio, while the bond mandate will represent about 18% of the portfolio.
The money for the mandates will be seeded from a balanced fund currently managed by Deutsche Asset Managers, the official said. The pension scheme had undertaken a strategic review and decided to move from a balanced to a more specialist structure, spurring the tender. Deutsche has been invited to retender for the mandates, he added.
The balance of the pension fund is managed by Schroders, who oversee a balanced mandate and the fund’s property investments, and GMO, who has a specialist equity mandate.
The Tower Hamlets pension scheme’s asset allocation is 35% UK equities, 35% oversees equities, 10% indexed linked equities, 2.5% fixed interest, 5.5% stirling non-gilts and 12% property, the official said.
Proposals must be tendered by 17 May. Hymans Robertson is assisting the scheme in the manager search.
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.