Key Takeaways
- • Railpen, the £36bn manager for the Railways Pension Scheme, has appointed Robeco to run a global equities mandate worth an initial £1bn, according to Pensions Expert.
- • The Robeco mandate operates alongside Railpen's existing internal equities team, mirroring arrangements the scheme already uses in other asset classes.
- • The mandate is the cornerstone of a new "quantamental" strategy that combines fundamental and quantitative investing and is benchmarked against the MSCI All Country World Index.
- • Railpen describes the appointment as a "significant evolution" in its investment strategy, with the internal team focused on "strategic oversight."
- • Robeco and Railpen framed the arrangement as the start of a broader strategic partnership.
Summary
Railpen, which manages £36bn on behalf of the multi-employer Railways Pension Scheme, has appointed Robeco to run a global equities mandate with an initial value of £1bn. The arrangement will see Robeco operate the mandate alongside Railpen's internal team, a structure that mirrors the scheme's existing arrangements in other asset classes. Railpen already works with several external managers, but the scheme described the Robeco partnership in a statement as a "significant evolution" in its investment strategy.
Craig Heron, director of public markets at Railpen, said Robeco was selected for its quantitative approach following a thorough search. He framed the appointment as part of the scheme's "hybrid investment approach," under which external asset managers are appointed "where we believe they can enhance outcomes for members." Heron said the mandate is designed to complement the scheme's existing internal equity capabilities and strengthen the resilience and diversification of its overall public markets portfolio.
The mandate is the cornerstone investment for a new "quantamental" strategy and will be benchmarked against the MSCI All Country World Index. Robeco's chief investment officer, Anton Eser, explained that the approach is designed to combine fundamental and quantitative investing. He said the firm and Railpen had worked closely together to develop a distinctive investment solution focused on long-term outcomes, and that the investment "marks the beginning of a broader strategic partnership."
Caroline Hedges, head of credit and manager implementation at Railpen, said the scheme undertook extensive due diligence and secured competitive commercial terms, which it believes give the mandate strong value for members. She added that Robeco's investment approach and its commitment to sustainable ownership are closely aligned with the trustee board's objectives and support Railpen's wider strategy of investing globally to achieve the best risk-adjusted returns.
Craig Heron, director of public markets at Railpen, said Robeco was selected for its quantitative approach following a thorough search. He framed the appointment as part of the scheme's "hybrid investment approach," under which external asset managers are appointed "where we believe they can enhance outcomes for members." Heron said the mandate is designed to complement the scheme's existing internal equity capabilities and strengthen the resilience and diversification of its overall public markets portfolio.
The mandate is the cornerstone investment for a new "quantamental" strategy and will be benchmarked against the MSCI All Country World Index. Robeco's chief investment officer, Anton Eser, explained that the approach is designed to combine fundamental and quantitative investing. He said the firm and Railpen had worked closely together to develop a distinctive investment solution focused on long-term outcomes, and that the investment "marks the beginning of a broader strategic partnership."
Caroline Hedges, head of credit and manager implementation at Railpen, said the scheme undertook extensive due diligence and secured competitive commercial terms, which it believes give the mandate strong value for members. She added that Robeco's investment approach and its commitment to sustainable ownership are closely aligned with the trustee board's objectives and support Railpen's wider strategy of investing globally to achieve the best risk-adjusted returns.
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