BAA Pension Scheme, Horley, England, hired Cardano to advise the £2 billion ($3.25 billion) plan on asset allocation, manager selection and liability hedging among other investment-related services, according to a news release from Cardano.
BAA has been struggling under the weight of its pension liabilities. In the nine months ended Sept. 30, BAA said the increase in the defined benefit deficit resulted in a loss of £261.7 million — or almost half of the company’s total operating loss, according to company data.
“We need to manage our funding level,” Gordon Dewar, chairman of BAA trustees, said in the release. “We are looking to achieve good investment returns, but also to control the risks relative to our liabilities.”
Messrs. Dewar and Alastair Knowles, secretary to the trustees at BAA, could not be reached for further information. Phil Page, client manager at Cardano, also could not be reached for comment by press time.