UK - The £290m London Borough of Harrow Pension Fund is dropping Merrill Lynch Investment Managers from £100m worth of global equities.
The equities formed part of a balanced mandate at the council with MLIM retaining the property and bond assets.
Harrow’s pension fund assets are currently equally split between MLIM and a balanced mandate held by UBS Global Asset Management.
Harrow chief accountant John Fenwick blamed poor performance and concern over staff departures at MLIM as the reason for the change.
The council is now looking for a manager to run another global equities mandate with broadly equal proportions of UK and international equities.
No benchmark has yet been set.
The deadline for submissions of interest is November 26, at which point the scheme will invite between five and 20 firms for the mandate.
Hymans Robertson is the scheme’s consultant.
MLIM has been invited to reapply.
The Harrow mandate is the third that MLIM has lost within the last three weeks.
It lost a mandate with the £1.8bn Essex County Council Pension Fund, and last week, the £103m University of Bristol Pension and Assurance Scheme tendered for a manager of managers to replace both MLIM and Barclays Global Investors.
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.