UK - The £1.4bn (US$2.79) Cambridgeshire County Council pension fund has awarded State Street Global Advisors (SSgA) a £140m passive equity mandate, following a reshuffle due to manager underperformance.
Speaking to MandateWire, fund accountant John Hopwood said: "In the process of replacing UBS we decided against a like-for-like switch, and instead chose to hire specialist managers."
The assets in the passive equity mandate will be invested in SSgA's Managed Pension Fund UK Equity Index Strategy, which tracks the FTSE All-Share index.
Kanesh Lakhani, managing director, SSgA UK, commented: "Local authorities are increasingly recognising the benefits of passively managed funds and the role they play in a balanced portfolio."
MandateWire said the fund initially went out to tender with three mandates totalling £700m, consisting of a £350m active global equities mandate, a £200m active European equities mandate, and the £150m index-tracking UK equity mandate awarded to SSgA.
However, after receiving presentations from prospective managers, the fund split the active global equities mandate, with two managers now to handle the brief.
The fund is expected to confirm its additional managers after signing off on management contracts in the next few weeks, with fee negotiations largely concluded, MandateWire said.
This week's edition of Professional Pensions is out now.
Ben Gunnee reflects on 2018 and talks about the Fiduciary Management trends to keep an eye on in 2019
Lloyds Banking Group secured 630,000 new pension customers last year, according to its 2018 annual results.
Guy Opperman has rejected calls to speed up changes to auto-enrolment (AE) despite increasing pressure to boost contribution rates and overall savings pots.