Hoover (1987) Pension Scheme, Pentrebach, Wales, hired Goldman Sachs Asset Management and PIMCO to run £115 million ($200.68 million) each in active bonds. Funding came from terminating UBS Global Asset Management, which ran £230 million in active bonds, said Barry Hawkins, pension fund manager.
The £405 million pension plan reallocated the money as part of an overall restructuring to better match assets with future liabilities. The fund has a deficit of about £10 million and needed "to make the bonds work that much harder," Mr. Hawkins said. The two firms were chosen because of their experience and wide array of bond offerings; UBS also was considered, he said.
The pension plan also hired State Street Corp. to provide custody and compliance monitoring services for the £230 million given to the two new bond managers. Aon Consulting assisted with the hirings.