Multi-manager specialist Frank Russell has been awarded the sole mandate for the Compass Pension Scheme - worth over £500m which is the largest single mult-manager mandate in the UK.
The scheme has been set up for employees transferring to hospitality firm Compass from the hospitality division of Granada following its demerger from the media group.The actual size is to be confirmed within the next week by parties consultants. Gissings is acting on behalf of Compass and William M Mercer.
Compass Pensions Scheme will benefit from Frank Russell’s list of over 40 fund manager including Barclays Global Investors, Deutsche Asset Management, Fidelity, Schroders, BlackRock, JP Morgan and Glasgow Fund Managers. Frank Russell will also act as strategic advisers to the scheme.
This is Frank Russell’s second multi-manager mandate win in the last two years following its appointment in January 1999 to manage the separate £150 million Compass Group Pension Plan.
Compass group pensions manager Paul Lambert said Frank Russell had already demonstrated its skill as an investment manager in running the Compass Group Pension Plan.
Lambert said: “The trustees of the new scheme wish to focus on investment strategy and have decided to outsource the management of our investment managers to a specialist multi-manager provider. We believe this is also in keeping with best practice as set out in the recent Myners review.”
Frank Russell client service director Mike Clark said: “We are delighted to have been appointed for this substantial mandate and to be providing ongoing strategic advice to the trustees of the Compass Pension Scheme. We look forward to consolidating our relationship with the trustees of the new scheme.”
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