UK – The 300 million-pound (426.7 million euro) Water Companies Pension Scheme has appointed State Street Global Advisors to manage over two-thirds of its assets.
SSGA will manage a 200 million-pound (285 million euro) multi-asset passive mandate for the defined benefit scheme. It already runs a small index-linked portfolio for the scheme.
The fund itself has undergone a complete change in investment strategy. Previously the fund was predominantly managed by Gartmore and Schroders, each with a balanced mandate. Actuarial advice recommended a new strategy as the number of new employees was decreasing.
Each employer within the scheme was given a choice of investment strategies from which to select one that best suited their risk profile resulting in the reallocation of assets.
In addition to SSGA’s 200 million pound mandate, Schroders and Liontrust will be managing an active UK equities mandate.
Valerie Lowther, secretary to the Water Companies Pension Scheme said: “We are very confident about our decision to appoint State Street Global Advisors to manage this mandate. We are impressed by their track record as a leading global index manager and their ability to provide the service we need.”
SSGA manages 901 billion dollars (796 billion euros) in investment programmes and portfolios worldwide.