UK - The £1.18bn Wiltshire County Council pension fund has dumped Northern Trust in favour of three boutique managers for mandates totalling over £178m.
Investment officer, David Broome, said the fund had discarded Northern Trust over “performance issues” in March 2006 and began tendering soon after.
Broome told Global Pensions: “We held a strategy day in spring 2006 and realised dismissing Northern Trust presented a great opportunity to diversify into areas we had been looking at for some time.”
As a result, Edinburgh Partners scooped a £86.5m mandate for unconstrained global equities.
Meanwhile, Hedge fund Fauchier Partners received a long-short equities contract worth £57.5m.
Finally, Record Currency won two mandates. The first on an active basis for £23m cash with a £320m notional value and a hedging contract worth £11m cash, and a £225m notional value.
Broome said modelling by advisors Hymans Robertson, showed a new approach would increase returns by 60 basis points and reduce volatility by a further 60.
The Wiltshire County Council pension fund covers all council workers, plus local charities and outsourced private sector funds.
The new firms have been actively investing the fund's assets since July 2 2007.
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