Metal Box Pension Scheme, Wantage, England, plans to review its bond portfolio in the second half of the year and will consider adding global high-yield bond managers, said James Harrington, Crown Cork director of corporate finance, Metal Box trustee and member of its investment committee.
Also, the plan for Carnaud Metalbox Group U.K., a subsidiary of Crown Cork & Seal, Philadelphia, switched from balanced managers to four global stock managers hired to invest in U.S. stocks. They are: Capital Guardian Trust and Putnam Investments, core; Brandes Investment Partners, global value; and Sit Investment Associates, global growth stock. The fund also dropped the CAPS Median index as its benchmark.
Its new asset allocation is 50% stocks — of which 55% is British and 45% global — 42% bonds and 8% real estate, the result of an asset-liability study conducted late last year, Mr. Harrington said. The fund anticipates the global managers will allocate about half their investments to U.S. stocks, approximating the U.S. weighting in the MSCI World index.
Existing balanced managers Gartmore, Fleming and Mercury will continue to manage European stocks and bonds.
Also, the fund is close to hiring a global custodian as the $2.2 billion pension plan switches from balanced managers to four global stock managers to invest in U.S. stocks. It is no longer accepting proposals.
Watson Wyatt Worldwide assisted.
