UK - Asset manager Henderson Global Investors is to shift its own defined benefit pension scheme into a Liability Driven Investment structure.

It also plans a total of £80m (€118m) in special payments to shore up the fund's assets, the firm said in its 2006 annual report.

The company has three types of pension plan. These include a defined benefit plan, which closed to new members in 1999, a money purchase plan and several top-up plans for executives.

The first two plans together form the Henderson Group Pension Scheme, the firm said.

It has already made a special payment of £40m last December - funded largely by the proceeds of the Towry Law sale. This will be followed by two more special payments of £20m each in October 2007 and 2008.

It said: "The company has reached agreement with the trustee on the future funding principles and schedule of contributions for the scheme.

"In summary, the Scheme is intended to be funded to at least 106% of its liabilities on an IAS 19 basis, after taking account of the £80m of special contributions and regular contributions to the Scheme.

"In addition, a Liability Driven Investment (LDI) strategy will be adopted for Scheme assets backing defined benefit liabilities.

Some 50% of assets will be held in a risk-reducing portfolio, comprising bonds broadly matching the liability profile of the scheme with hedging of inflation and interest rate risks. The balance will be invested in a well-diversified risk-seeking portfolio.

The firm added: "These changes will significantly reduce the market risk of the scheme and give the scheme exposure to some of Henderson's most highly rated investment professionals."

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