Serco Pension and Life Assurance Scheme, Hampshire, England, hired BlackRock to manage its £1.5 billion ($1.9 billion) liability-driven investing portfolio.
The pension fund previously had three LDI managers, said a news release by BlackRock. These were reviewed as part of its aim to reach full-funding in the next five to 10 years. The LDI strategy, which a spokesman for Serco said represented "the vast majority of the pension fund," has been aggregated into the one portfolio managed by BlackRock. The spokesman declined to identify the previous managers.
The hire follows a competitive process.
"The scheme is in a strong position, but we recognized that efficiencies could be made by transitioning our LDI portfolios into one mandate," said Guy Leach, chairman of the Serco Pension and Life Assurance Scheme, in the news release. "Having the ability to onboard and transition the funds seamlessly was a key requirement when choosing an investment manager. The team at BlackRock showed real strength and expertise in LDI, and we were confident that they were best placed to handle the transitions of the three existing portfolios and manage the risks that came with this."