Thames Water schemes appoint Redington as adviser

Scheme sponsor Thames Water’s annual report reveals that as at March 31 2021, Redington was appointed as the schemes’ adviser, replacing Willis Towers Watson.

The fund explained that Willis Towers Watson had been in the post for about 10 years and, following good governance practice, the trustees undertook a market review. “Following that review, which included written submissions and presentations, the trustees decided to appoint Redington,” the fund said. Elsewhere, the schemes’ combined allocation to international equities increased by 4.4 percentage points, to 19.4 per cent over the year to March 31 2021. Exposure to international corporate bonds also rose by 4.1 percentage points, to 11.1 per cent from 7 per cent. Conversely, liability-driven investments exposure decreased by 7.7 percentage points, to 51.9 per cent from 59.6 per cent. The fund said the increase in exposure to corporate bonds in part reflected a small reallocation in one scheme from a diversified growth fund to corporate credit.  “There were no other changes in strategic asset allocation and the changes reflect market pricing, which saw significant movement from the 2020 reporting date,” the fund continued.The scheme also cut its small, 0.1 per cent, exposure to international property over the year.“This relates to an exposure adjustment by one of the diversified growth fund managers within the portfolio,” the fund commented. The combined allocation for the two schemes as at March 31 2021 stands at 1.5 per cent UK equities, 19.4 per cent international equities, 1 per cent UK government bonds, 3.7 per cent international government bonds, 2 per cent UK corporate bonds, 11.1 per cent international corporate bonds, 0.3 per cent UK property, 51.9 per cent LDI, 3.5 per cent other (including derivatives) and 5.6 per cent cash. The strategic asset allocation for both schemes stands at 52 per cent growth assets (16 per cent global equities, 22 per cent diversifying strategies and 14 per cent multi-strategy alternative credit) and 48 per cent LDI (including cash).The manager roster for TWPS comprises Legal & General Investment Management for global equities, Schroder Investment Management for LDI, Oak Hill Advisors for diversified credit strategies, KKR for global credit opportunities, Fulcrum Asset Management for diversified absolute return and Ninety One for a diversified growth fund.For TWMIPS, the managers include LGIM for global equities, Schroders for LDI, Fulcrum for diversified absolute return, Ninety One for DGF, AXA Investment Managers for long-term credit and CBRE Global Investors for property.This article originally appeared on MandateWire