UK - The £2.4bn Lancashire County Pension Fund has put out to tender £960m of its assets in a move from balanced to specialist investment management.
The fund is tendering for £600m UK active equity managers and £360m active bond managers.
The balanced portfolio was managed by Schroders, Deutsche Asset Management and Newton Asset Management, holding around £480m apiece. While Newton has been retained to run a £500m global equities portfolio, Schroders and Deutsche stand to lose their mandates.
The fund’s principal accountant, Mark Bennett, said that two asset managers were free to bid for the mandates.
“It was felt by our consultants (Mercer) that going forward, a specialist arrangement would be best suited for the fund,” Bennett said.
The fund will retain Legal and General Investment Managers, which runs 25% of the fund’s assets in a passive multi-asset portfolio. Knight Frank manages 6% of assets in a direct property brief, while Westport runs 3% of the fund’s assets in a private equity mandate. Henderson, which holds 2% of assets in a UK equity SRI portfolio, has also been retained.
Deadline for tender is June 29, 2004.
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