UK - The £1.8bn Essex County Council Pension fund has appointed eight managers to run mandates equivalent to over half the scheme's assets.
The changes – the second part of the council’s move to a specialist manager arrangement – sees Merrill Lynch Investment Management and Baring Asset Management both losing balanced mandates.
The biggest winner has been Legal & General Investment Management, which will now run a £620m passive multi-asset brief, though it has lost a £250m index-tracking UK equities mandate.
Baillie Gifford’s multi-asset mandate has been dropped in exchange for a new global equities brief.
The other mandates wins are:
- APS Asset Management (based in Singapore) £20m Pacific ex-Japan equities.- First State Investments £20m emerging markets equities (this is believed to be one of the few occupational scheme mandates First State has ever won, the manager is better known for its retail funds).- Marathon Asset Management, Investec Asset Management and the fund management arm of the Swiss private bank Mirabeau will all run UK equities mandates worth £35m.- Nomura Asset Management £40m Japanese equities.-Prudential M&G £120m UK active bonds (50% UK sterling non government bonds).
The scheme put the mandates out to tender in April following an asset liability study by Watson Wyatt.
The consultant recommended a move away from balanced to specialist management, leaving the council with just one passive manager on its roster.
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