Universities Superannuation Scheme Fires Its Balanced Fund Managers

Universities Superannuation Scheme, the UK's third largest private sector pension fund, has appointed three new external fund managers Wellington Management International, Goldman Sachs Asset Management International, and Legal & General Investment Management. This follows a review of investment strategy and

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Universities Superannuation Scheme, the UK’s third largest private sector pension fund, has appointed three new external fund managers: Wellington Management International, Goldman Sachs Asset Management International, and Legal & General Investment Management.

This follows a review of investment strategy and a decision to move away from balanced fund managers. As a result, three current external managers – Schroders, Baillie Gifford and Merrill Lynch Investment Managers – are no longer included in the external roster of managers.

“We have made the changes entirely because of this different approach. There is no criticism or complaint about the performance of the previous managers or the strength of our relationship with them,” says Peter Moon, chief investment officer, Universities Superannuation Scheme. “Indeed, we will maintain a close dialogue with them.”

The reorganisation of the USS portfolio in line with this new strategy has now been completed.

USS’s new external fund managers, and their portfolio mandates, are: Wellington Management International (global equities), Goldman Sachs Asset Management International (UK equities), Legal & General (active bonds). They join existing appointed specialist managers Capital International (global equities) and Henderson Global Investors (enhanced UK indexed equities)

USS manages 70 per cent of its assets in house and now has a total of five external fund managers instead of the previous three.

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