UK - The Six Continents Pension Plan scheme is poised to cut the number of its fund managers after the scheme almost halved in size.
The fund’s value was reduced from £2.25bn to £1.25bn when assets were transferred from the Bass Brewers Pension Plan two months ago.
Trustees of the scheme are working in conjunction with consulting actuary William M Mercer to decide whether to streamline the manager line-up, with a decision expected at the beginning of December.
The current manager line-up is thought not be the most cost-efficient for the size of the scheme. The trustees are “looking at balancing cost-efficiencies on one hand while getting the right additional return on the other,” according to Six Continents director of pensions Trevor Jones.
Jones added: “We are rather smaller than we were and therefore need to look at the way we run the fund. One of the main things we are looking at is whether the number of managers and the structure of managers we have in the fund is still appropriate given the smaller size.”
Jones added that the scheme will be undertaking an extensive strategic review next year following its actuarial valuation.
Currently the Six Continents scheme does not have any investment in alternative asset classes and the review will, in particular, look into the possibility of private equity and hedge fund investment. Of the scheme’s eight briefs – across equities, bonds, property and emerging markets – Legal & General Investment Management runs a 40pc stake in four of the mandates and a 10pc passive stake in one further brief.
The active management is spread across six houses which comprise: Independence Asset Management, JPMorgan Fleming Asset Management, Phillips & Drew, Pictet Asset Management, Rothschild Asset Management and Schroder Investment Management.
The property portfolio is managed by Baring, Houston & Saunders and Wellington Asset Management runs the scheme’s global equities portfolio.
The leisure giant transferred £1bn worth of pension fund assets to the new Bass Brewers scheme this August, following the sale of its entire brewing arm for £2.3bn to Belgium-based Interbrew last year.
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