Thames Water Programs Appoints Redington as Investment Advisor

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On the move: The £ 1.7bn Thames Water pension scheme and the £ 770.9m Thames Water Mirror Image pension scheme have appointed Redington as their new investment advisor. In addition, during the year until March 31, 2021, one of the plans reallocated part of its assets from a diversified growth fund to business credit.

The annual report of program sponsor Thames Water reveals that as of March 31, 2021, Redington has been appointed program advisor, replacing Willis Towers Watson.

The fund explained that Willis Towers Watson had been in office for about 10 years and, in accordance with good governance practices, the trustees undertook a market analysis. “As a result of this review, which included submissions and written presentations, the directors decided to nominate Redington,” the fund said. Elsewhere, the combined allocation of plans to international equities increased by 4.4 percentage points, to 19.4% in the year through March 31, 2021. Exposure to international corporate bonds also increased. increased by 4.1 percentage points, from 7% to 11.1%. Conversely, exposure to liability-oriented investments decreased by 7.7 percentage points, from 59.6 percent to 51.9 percent. The fund said the increased exposure to corporate bonds partly reflected a small reallocation in a program from a diversified growth fund to corporate credit. “There have been no other changes in the strategic asset allocation and the changes reflect market prices, which have seen significant movement from the 2020 close date,” the fund continued. The program also reduced its small 0.1% exposure to international real estate during the year. “This relates to an exposure adjustment by one of the diversified growth fund managers within the portfolio,” commented the fund. The combined allocation for the two schemes as of March 31, 2021 is 1.5% UK equities, 19.4% international equities, 1% UK government bonds, 3.7% international government bonds, 2% UK corporate bonds, 11.1% international corporate bonds, 0.3% UK real estate, 51.9% LDI, 3.5% other (including derivatives) and 5.6 percent cash. The strategic asset allocation for the two programs amounts to 52% growth assets (16% global equities, 22% diversification strategies and 14% multi-strategy alternative credit) and 48% LDI ( including cash). TWPS includes Legal & General Investment Management for Global Equities, Schroder Investment Management for LDI, Oak Hill Advisors for Diversified Credit Strategies, KKR for Global Credit Opportunities, Fulcrum Asset Management for Diversified Absolute Return and Ninety One for a Fund of diversified growth. For TWMIPS, managers include LGIM for Global Equities, Schroders for LDI, Fulcrum for Diversified Absolute Return, Ninety One for DGF, AXA Investment Managers for Long Term Credit and CBRE Global Investors for Real Estate.This article originally appeared on MandateWire


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