Evaluation

Calstrs to ‘put the brakes on’ plans to buy pension funds

The Calstres Pension Fund has revealed plans to purchase “the majority of the assets” in several pension funds it manages, saying it is looking to “put the brake on” plans to privatise them.

A statement on the Calstr, the world’s second-biggest pension fund by assets, said its board is “confident in the investment performance of the Calstral Group’s investments”.

The statement said the funds “continue to maintain a strong focus on maintaining the viability and long-term value of Calstr and its assets” and that “we are in no rush to make any investments”.

“The Calstras Group is committed to the long-run financial sustainability of the funds it invests, with the sole objective of increasing their value,” the statement said.

“With the strong investment performance and management expertise of the portfolio, we will be able to continue to support the investments of the pension funds that Calstr invests.”

Calstrs said it had invested in the majority of pension funds in the UK, and was looking to buy “the bulk” of the remaining assets in “some of the more attractive funds”.

It said it has “not made any specific decisions on the purchase of the rest of the portfolios”.

The Calstr said the purchase would not affect the “core value” of Calstrals assets.

In its statement, the fund said it is “committed to continuing to invest in and manage the CalStrals portfolio in line with its investment strategy”.

“We are in a position to continue investing in the CalStrs portfolio and to further develop the portfolio,” it said.

“This is a prudent decision as we continue to build our portfolio and grow our business, and the Calsters long-time focus on our long-haul business.”

Read moreAbout Calstr: The pension fund is one of the UK’s biggest pension funds and manages more than 2,000 million pensioners.

It has a turnover of more than £8.5 billion ($10.3 billion) a year.

The fund’s investment portfolio has more than doubled in value since 2014.

Its shares are listed on the stock exchange.

Read moreThe announcement comes as the Calstahers are set to unveil plans to sell more than 100% of its stake in London-based pension fund Pensioners’ Trust, which has assets of more at £1.4 billion.

Pensioners’ Fund chief executive John Wysocki said in a statement that the fund was not yet ready to make a decision on its purchase of pension assets from Calstr.

“We continue to be in close contact with the Calstreys management team and they continue to engage with us to work through the details of our proposed transaction,” he said.

The statement added that the board was “confidently” committed to “investing in the future” of its pension fund.

Earlier this week, the Calstraes pension fund said a takeover bid by a Chinese fund that owns about one-fifth of the group’s assets would be unlikely to succeed as the group had a “strong balance sheet”.

Read more “We believe that the proposed transaction would be highly unwise and not in the best interests of the company,” the Calsthrs said in the statement.

Calstraes also said it was “comfortable” with its balance sheet and would continue to invest.

The pension group said it would continue its “continued strong focus” on maintaining its long-standing investments.

“It is our view that we are in the right place for the future, given our continued strong performance in the areas of investment management and asset management,” it added.

“The fund has continued to achieve significant results in recent years, and has had no major changes to its asset management and investment strategy since the beginning of its existence.”

Calstr has achieved some remarkable results in the past year and is continuing to achieve record results.

“Read the full statement from the Calstrues