UK - Henderson Global has lost a £190m global balanced mandate with the £880m North Yorkshire Pension Fund on the back of an investment strategy review linked to its triennial valuation.
The bulk of the fund’s assets are currently managed by Baillie Gifford (25%), Barclays Global (23%), Henderson Global (22%) and Standard Life (23%).
From July 1, North Yorkshire said it would redistribute the bond portfolios of the balanced managers to fund two new £100m global bond mandates awarded to Credit Agricole and European Credit Management.
The equity assets managed by Henderson will be redistributed among the three remaining balanced managers, who will now manage global equities to a fresh customised benchmark.
“We have introduced these changes to enhance the efficiency and effectiveness of the way the pension fund assets are managed,” said John Weighell, chairman of the pension fund committee.
“It is hoped that the new arrangements will improve the fund’s ability to meet the exacting performance standards set by the pension fund committee.”
The new global bond portfolios will have the ‘least risk portfolio’, agreed by the actuary, as their benchmark. This is 85% UK index linked gilts and 15% UK fixed income gilts,, both with maturities exceeding 15 years. The managers will target outperformance of 3% a year.
Transition arrangements will be handled by JP Morgan Investor Services, the fund’s global custodian and provider of performance measurement.
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