LONDON Trafalgar House Pensions Trust appointed Cardano as investment consultant and derivative overlay manager, confirmed Ros Altmann, a pension fund trustee.
The £1.25 billion ($2.49 billion) fund followed Kerrin Rosenberg, its previous consultant at Hewitt, to Cardano. Mr. Rosenberg, who is CEO of Cardano's U.K. operations, left Hewitt in 2007.
In the end, we decided to go with a specialist investment consultant with broad experience in investment strategies and derivatives, Ms. Altman said in a telephone interview. Since we already have an established relationship with (Mr. Rosenberg), Cardano became the favored option.
About 50% of the fund's assets is in a return-generating portfolio, comprising about 10 to 15 percentage points invested in long-only equity, another 20 percentage points in absolute-return strategies and five percentage points each in real estate, infrastructure and private equity, according to Ms. Altmann. The remainder is invested in a liability-matching portfolio consisting mostly of fixed-income assets using a derivate overlay to better match assets with liabilities.
Ms. Altmann declined to comment about specific changes that might occur, but she said there is a likelihood that the fund will increase its return-generating portion closer to 60% of assets. The markets have moved significantly and as opportunities arise, we hope Cardano will help us identify them, Ms. Altmann added.