Nichols PLC, Newton-le-Willows, England, hired Investment Solutions to run its £12 million ($23 million) defined benefit plan, confirmed Richard Dinham, senior investment manager at Investment Solutions. The plan is closed to new employees. Mr. Dinham said the firm would use an active liability matching approach to managing the assets so the fund can be "fairly" confident of meeting its short-term payout obligations while capturing returns from longer-term investments such as equities and corporate bonds. All the fund's assets had been passively managed, but Mr. Dinham declined to name the prior manager. Nichols officials were not available for comment.
"Our portfolio was previously invested solely in passive funds and we wanted to enhance returns whilst ensuring that we maintained a low-risk strategy," Simon Nichols, director and company secretary of Nichols, said in a news release.