Greenalls Plans Strategy Review

The GBP250 million Greenalls Group Pension Trustees will embark on a complete investment strategy review with the help of consultant Watson Wyatt following its triennial valuation. Even though the specifics of the review have not yet been ironed out, a liability-driven investment strategy will be considered because the fund is keen to identify new investment products that reflect its maturity. In 2000, the scheme adopted a risk-based approach that will continue to implement. Approximately 60% of assets are invested in bonds with the rest in equity. It has 150 active members and 5,000 deferred members and pensioners. The rest of its assets are invested in equity. Andrew Smith, executive officer at Greenalls in Warrington, said the review is expected to be completed in October.

Legal & General Investment Management handles a fixed-income mandate worth approximately GBP75 million. Merrill Lynch Investment Management runs GBP75 million corporate bonds mandate and Capital International approximately GBP100 million in global equity. It is unclear how or if their mandates will change.

Greenalls is the closed pension scheme for the travel and hotels group De Vere. De Vere Group Pension Scheme, a separate entity with 6,500 employees, is an open fund.