The country's third largest pension, the Universities Superannuation Scheme has had a re-jig of its pension fund managers. The pension scheme has £19bn in assets and manages it for over 200,000 people. The decisions made could therefore have a huge impact on members.
According to the pension's Chief Investment Officer, the move away from Merrill Lynch, Schroders and Baillie Gifford was due to them being 'balanced fund managers' and nothing to do with their performance.
The three managers have been replaced by Legal & General, Goldman Sachs and Wellington.
Our View
To change fund managers because of the way they manage has to be done by exceptionally experienced analysts. The Superannuation Scheme has obviously not taken the decision lightly but we will have to wait and see the outcome in hard performance.
We are seeing investment managers shift their weightings in many areas but only time (and the markets) will show whether the moves were worthwhile.