Active equity managers appear to be the main losers: about £400 million from the Intercontinental Hotels and the Britvic plans is now parked in mainly passive equity and bond strategies and run as a pooled fund. The move is temporary, until trustees of the two plans decide on a new course.
Legal & General Investment Management, London is managing the passive assets. Insight Investment Management Ltd. and Wellington Management International, both of London, manage active bond and equity mandates of 20% and 5% of total assets respectively. The three were managers for the Six Continents plan.
Six Continents' other incumbent money managers all have been retained, but those whose mandates were slashed appear to be UBS Global Asset Management Ltd., London; J.P. Morgan Fleming Asset Management, London; Pictet Asset Management, London; Schroder PLC, London; and Independence Investment LLC, Boston.
The Mitchells & Butlers plan kept the same manager lineup as the former Six Continents plan, but mandates have almost halved to reflect the smaller size of the plan, said Mr. Jones.
The plan also has cut its equity portfolio by 10 percentage points to invest more in fixed income, mainly because it now has a relatively mature membership base following the restructuring, he added.
The current asset mix is 40% fixed income, 52% equity and 8% real estate. Prior to the breakup, the Six Continents Plan had 62% in equity, 30% in fixed income and 8% in real estate.
Mitchells & Butlers' managers are Insight Investment for active bonds; Legal & General for passive equity and bonds; UBS Global for active U.K. equity; Wellington for active global equity; Morgan Fleming for U.K. active equity; Pictet for active Pan-European equity; Schroder for active Asia Pacific equity; and Independence for active U.S. equity.
Trustee boards of the Intercontinental Hotels and Britvic plans over the next few months will come up with a new asset mix and appoint new money managers, said Mr. Jones.