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Mandate round-up: NOW: Pensions appoints BNY Mellon as custodian and investment administrator

26 April 2012

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This mandate round-up includes BNY Mellon, NOW: Pensions, West Midlands Pension Fund, Oxfordshire County Council Pension Fund, bfinance, Wellington Management and the Pension Insurance Corporation.

Oxfordshire County Council Pension Fund appoints Wellington Management for global equity mandate

The Oxfordshire County Council Pension Fund has selected Wellington Management for a £150m global equity mandate after a public tender was issued in co-operation with investment consultancy bfinance.

From a short list of the most suitable managers based on in-depth quantitative and qualitative analysis, Wellington Management was selected at the end of a stringent due diligence process.

Sean Collins, service manager for Oxfordshire County Council Pension Fund, said that the pension fund committee felt that "Wellington's Global Value team was the best fit for the Pension Fund's needs".

BNY Mellon appointed by NOW: Pensions as custodian and administrator to new DC workplace pension

NOW: Pensions' has appointed BNY Mellon to provide custody and investment administration solutions for its new cost-efficient UK defined contribution workplace pension.

The UK-based multi-employer trust, which was established last November, will manage its own investments via NOW: Pensions Investments. Its administration is carried out by Paymaster. The scheme is a subsidiary of ATP (Arbejdsmarkedets Tillægspension), Denmark's largest pension fund.

Morten Nilsson, chief executive of NOW: Pensions said: "Efficient custody and investment administration solutions are key elements which enable us to offer a cost-effective solution to our members. BNY Mellon has supported ATP's offering in Denmark since 2007 and we look forward to working with the company on our UK solution."

Pension Insurance Corporation insures staff pension scheme of premier livery company of the City of London

The Trustees of the Mercers' (Livery) Company Staff Pension Scheme have entered into a pension insurance buyout agreement with Pension Insurance Corporation (PIC). The transaction covers around £35m of liabilities and almost 150 members. Barnett Waddingham advised the trustees.

The Mercers' Company is the premier livery company of the City of London. Sir Alexander Graham, chairman of trustees, said: "The PIC team have been flexible and responsive in helping us insure our members' benefits, especially as we completed this transaction in a shortened timescale. We selected PIC after a competitive process, guided by Barnett Waddingham, not only because of the way they helped us shape the transaction, but also because they place a high priority on policyholder care and service standards."

West Midlands Integrated Transport Authority agrees £272m pensions buy-in

West Midlands Integrated Transport Authority (WMITA) has completed a £272m pensions buy-in. It is the first such transaction for a local government pension fund and with the high premium it is the largest buy-in transaction to have taken place so far in 2012.

The transaction was completed with the support of buy-out specialists Prudential, Mercer and law firm Squire Saunders.

"This transaction forms an important part of the WMITA fund's risk management strategy and has insured 50% of the fund's liabilities," Geik Drever, director of pensions at the West Midlands pension fund, said. "It has protected the fund and the sponsor against the volatility of investment markets and any unanticipated increases in life expectancy of the pensioners. Drever said risk management is "a very important part of local authority governance" and as such was content about the move.

 

First published 26.04.2012

azeevalkink@wilmington.co.uk