UCW Pensions selects Rothschild for fund assets
UK – The £32m (e52m) UCW Pensions 2001 scheme, which provides pension benefits to sections of the employees and former employees of the Communication Workers Union, has selected Rothschild Asset Management (RAM) to manage a multi-asset mandate for its entire assets.
Incumbent manager Colonial First State Investment Managers (UK) was dropped following a review of the firm by the trustees and pension fund consultant, Bacon & Woodrow.
The Scheme has also decided to move away from a peer group review process to a bespoke benchmark, which it says will better reflect the structure of the underlying liabilities.
Rothschild will manage a portfolio with a benchmark of 40% UK equities, 27% overseas equities, 16% gilts and 17% index-linked.
RAM's objective is to outperform the benchmark by 1% per annum over rolling three-year periods.
The appointment follows a search process conducted by Bacon & Woodrow, which began in late 2000 and culminated in a final presentation to the Trustees in competition with two
other fund managers in January 2001.
Derek Hodgson, chairman of the UCW trustees, says: "Rothschild Asset Management impressed the trustees with their understanding of the problems facing trustees of a mature defined benefit scheme; this and their ready willingness to work within our policy on Socially Responsible Investment, which as a trade union orientated scheme is an important factor. The reputation of Rothschild in the investment world and their proven track record were also significant in our decision making process."