UK - The £320m London Borough of Bromley pension fund has awarded Crédit Agricole Asset Management (CAAM) a £40m LDI/target return mandate.
Mike Pitt, assistant director of resources at the London Borough of Bromley, said the pension fund had moved its two existing balanced managers - Baillie Gifford and Fidelity - to slightly more aggressive balance mandates with a greater concentration of equities, and wanted to have something for a small part of the fund as a counter weight which would be closer to our liabilities in the event of equity markets falling.
He added the new mandate was a determination of a long running review of its asset allocation strategy, and that no other mandates were being planned at present.
The tender process was assisted by Bfinance.
When the borough first issued the tender late last year, a spokesman said it would be the council’s first move into the LDI space and was a decision made on the back of actuarial advice to diversify its portfolio.
The Bromley fund has seen its assets rise almost £140m over the last three years from £180m in November 2003.
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