UK - The £637m Worcestershire County Council's pension fund has revealed the results of a complete overhaul of its fund manager roster.
The fund, which has moved from a balanced set up to the use of specialist managers, however, did not disclose the exact size of the mandates awarded.
It has appointed four active managers – SG Asset Management for UK equities, Capital International for US equities, Nomura Asset Management for Far East equities and UBS Global Asset Management for European ex-UK equities.
UBS will also run UK, US and European equities on a passive basis, while JPMorgan Fleming Asset Management will run a bond mandate.
When the mandates were first advertised during the summer – at a point when the fund was valued at £775m – their values were:
- UK equities active £215m.- UK equities passive £205m.- Bonds £155m.- US equities £70m.- European equities £70m.- Far East equities £60m.
This gives the fund an asset allocation of 80% equities and 20% bonds.
The fund formerly used Gartmore Investment Management and Schroder Investment Management as its sole investment managers.
Earlier this year, Worcestershire’s principal accountant Graham Prosser said that it was dropping Gartmore and Schroders so that it could spread its investment risk among more managers and not for performance reasons.
The fund has also appointed ABN Amro Mellon Global Securities Services as its global custodian. It previously used the custody services of both Gartmore and Schroders.
The changes follows a comprehensive review of the asset structure of the fund earlier in the year.
No external consultant were used to advise on the changes.
A suite of liability driven investment (LDI) indices has been launched by STOXX and RiskFirst to aid trustees and consultants select, monitor and challenge managers.
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