European mandates July 2009
Written by Sophie Baker
The O2 Pension Plan has selected BlackRock as investment only defined contribution (DC) provider, to £30million in assets. The deal, for which O2 has selected BlackRock's DC Diversified Growth Fund as part of its default option, means the 3,000 members of the fund will be able to select BlackRock funds, including its DC UK Focus Fund.
The £85million Macmillan Limited Pension and Life Assurance Plan has selected Hymans Robertson to provide investment consulting services, including advising on investment strategy, the Plan's structure and manager selection. Catherine Fleming, secretary at the Pension and Life Assurance Plan of Macmillan Limited, commented: "We were very impressed by Hymans Robertson's technical knowledge and process driven approach, and I am confident that they will help the Trustees to make good investment decisions."
STC PML has been chosen to administer the defined benefit pension plan for Sharp Electronics (UK) Limited. STC PML is the commercial administration provider arm of SAUL Trustee Company, the trustee of the Superannuation Arrangements for the University of London. STC currently administers the pension benefits of 51 separate employers.
The Merchant Navy Officers Pension Fund has appointed KPMG to review the £3bn Fund's CIO requirements and appoint a delegated CIO, also referred to as implemented consulting, delegated consulting or fiduciary management. KPMG will combine the experience of its teams in the UK and the Netherlands to fulfil the mandate.
Capita Hartshead has been chosen by The London Borough of Hounslow to provide administration and advice on scheme regulations for its Pension Fund, for a contract of ten years. Capita Hartshead now looks after six Local Government Pension Schemes, including three London Boroughs, with a combined membership of more than 120,000.
Aon Consulting has been chosen to support ING Direct's flexible benefits scheme, Pick & Mix, for a 12 month period. Aon will deliver innovative benefit design to ensure that the offering remains relevant and appealing to employees.
Northern Trust is to provide custody services to the Royal Borough of Kensington and Chelsea Pension Fund, with assets of £350million. The mandate adds to Northern Trust's position of asset servicing and asset management solutions provider to more than 1,000 pension funds globally, including 33 per cent of all UK local government pension schemes.
The Jotun Paints (Europe) Limited Pension Scheme has appointed SEI to act as Fiduciary Manager for its £14million scheme. SEI will work with the Trustees of the scheme to develop an integrated strategy that is focused on improving the pension plan's funding status. SEI will provide asset and liability matching strategies and will construct an efficient investment portfolio. As Fiduciary Manager, SEI will also select managers to run the portfolio.
Barnett Waddingham has been selected by the London Pensions Fund Authority (LPFA) to provide actuarial services in a six-year contract. The scheme is valued at £3.1bn (at end April 2009), and Barnett Waddingham will provide a range of actuarial services from preparing triennial valuations and FRS17 valuations, to offering actuarial advice on the impact of changes to the Local Government Pension Scheme (LGPS).
Sourcecap International has added two mandates worth a combined $86million from Russell Investments. The deal comprises of a £30million mandate on behalf of Russell Investments' clients, and $38million for clients of Russell Investments Japan Co. Ltd. Both mandates are for Pan-European equities as part of Sourcecap's European Alpha strategy. Sourcecap now has $450million of assets under management.
Prudential UK has been chosen as joint AVC provider for the West Yorkshire Pension Fund (WYPF), labelled one of the 'most coveted AVC appointments in the country'. The WYPF has over 92,000 active members, making it one of the largest Local Government Pension Schemes in England and Wales, and could potentially represent one of Prudential's largest AVC contracts.
Watson Wyatt has been selected to administer the HSBC Bank (UK) Pension Scheme, one of the largest private sector pension schemes in the UK to outsource pension administration with 170,000 membership records. The responsibility for day-to-day administration of the scheme as well as accounting and treasury services will fall to Watson Wyatt. "We are absolutely delighted to be appointed by the Trustees and to have gained their confidence," commented David Dow, global practice director of the technology and administration solutions group at Watson Wyatt.
The Church of England Pensions Board has appointed RCM to manage a Global Equity mandate worth £100million. The global equity company within Allianz Global Investors will use a screening process to ensure compliance with the Church of England Pension Board's Ethical Policy.
HSBC Actuaries and Consultants (HACL) has been chosen by Bath and North East Somerset Council to provide a full range of investment consultancy advice to the Avon Pension Fund.
Punter Southall is to enter into an outsourcing partnership with Independent Transition Management Ltd (ITM). ITM will provide development and support services for pension administration software for Punter Southall under the long-term deal, and will also perform data migration and installation of new pension schemes. Thirty members of Punter Southall's Limited Systems team will be transferred to become ITM employees as part of the agreement.
RBC Dexia Investor Services has been chosen by Arrow Hedge Partners Inc. to provide shareholder services for a portfolio of funds in Canada. Arrow Hedge Partners, a Canadian-based investment management company, provides clients with access to high-quality funds of hedge funds and single manager hedge funds.