UK – Schroder Investment Management has been ousted as fixed interest investment manager for the British Medical Association Staff Pension Fund following a review – the £33m bond mandate has now been awarded to PIMCO Europe.

Schroders continues to manage part of the scheme’s equities portfolio, however.

"The trustees of the BMA Staff Pension Scheme regularly reviews its investment strategy and investment manager arrangements,” said a BMA statement.

“Following a detailed tender process, PIMCO Europe has been selected to replace Schroder Investment Management as the investment manager for the fixed-interest element of the scheme's assets, which represents approximately 30% (£33m) of the scheme's total assets.”

Schroders declined to comment. Mercer HR was the consultant in the tendering process.

According to a press statement released today, the mandate will be benchmarked against UK Bonds, and seek returns of 1% to 1.5% per annum relative to benchmark.

“A consistent performance track record and clear specialist fixed income expertise were key factors considered by the scheme’s trustees in awarding this mandate,” said chairman of the BMA’s pension fund trustees John Keeling.

“We look forward to working with PIMCO to meet the investment targets that we have set for our pension fund.”

PIMCO’s head of UK institutional business development Paul Craven added: “We are delighted to be working with the BMA and look forward to utilising PIMCO’s resources and expertise in this partnership.”

At the end of September PIMCO Europe was also awarded an emerging market mandate from the trustees of the HSBC International Staff Retirement Benefit Scheme.

The mandate was designated for investment in PIMCO’s emerging market bond fund, which grew to £556m at the end of July 2005.

PIMCO manages more than £20bn worth of assets in Europe and the UK, and £275bn globally.