UK - Schroders has been awarded a £35m specialist European equity mandate from the £1bn Surrey County Council pension fund.
The move follows the completion of Surrey County Council’s review of its investment management arrangements, which saw the fund drop Baring Asset Management and Deutsche Asset Management as fund managers, as reported by International Pensions News in June.
The major outcome of the review was a decision by the fund to switch from multi-asset managers to a more specialist core-satellite structure, a strategy designed to bolster returns and contain risk.
The fund’s objective will be to outperform the FTSE W Europe (ex UK) Index by 3% per annum over rolling three-year periods.
Schroders’ latest mandate win marks its 39th local authority client.
“The appointment reflects the benefits of being a large, independent, global asset manager accessing a substantial research capability in combination with the focus and performance attainable through a specialist and highly experienced investment team,” Schroders’ said in a statement.
Schroders group head of corporate communications, Julian Samways (pictured), commented: “This win reflects our excellent track record in specialist European equities and a real understanding of the needs of local authority clients.”
Legal & General Investment Managers currently run 20% as a passive multi-asset mandate. UBS Global Asset Management controls 13% of assets as active core UK equities with SG Asset Management managing a further 12.5%.
The fund recently awarded a 10% global equity brief to Marathon Asset Management, a 15% global bond mandate to Western Asset Management and 5% to ING Real Estate in its property fund-of-funds.
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