Royal British Legion Staff Pension Fund, London, selected Hewitt as investment consultant, replacing Buck Consultants.
Hewitt's first task will be to conduct an asset allocation review of the fund. John Graham, director of finance for the £65 million ($102 million) fund, said the plan was frozen at the end of March and “there will need to be a new set of investment guidelines because the needs of the scheme have changed.”
Hewitt was hired because “we wanted a fresh look at the investment strategy,” Mr. Graham said.
Mr. Graham expects the fund's current 60% target equity allocation to decline and its 30% target allocation to bonds to increase in order to meet expected greater liquidity needs for benefits payments. The previous 10% allocation to real estate was eliminated two years ago in favor of cash, he said.
He estimated the current real allocation as 50% equities, 40% bonds and 10% cash.
Mr. Graham said the asset allocation review should be wrapped up by the end of the year.
