GLOBAL - The £2bn Leicestershire County Council Pension Fund has appointed three new currency briefs together worth £1.36bn, and a £270m global equity mandate.
Mellon Capital Management and Millennium Asset Management were awarded active currency portfolios of £340m each.
In addition, Millennium will manage a third brief; a passive currency portfolio worth £680m which will look to hedge out 70% of the fund’s exposure to currencies, achieved by its weighting in overseas equity.
The new global equity mandate will be managed by Goldman Sachs.
The appointments, put in place at the beginning of April, were made following a strategic review of the fund’s structure in 2005.
Aside from the new passive currency brief, this review led the fund to abandon its use of passive management, which had been in place since 1990. Assets released from the passive portfolio were used to fund the Goldman Sachs brief.
The remainder of the fund’s multi-asset class passive portfolio, managed by Barclays Global Investors since 1992, was apportioned between three of the fund’s existing managers.
Of these, Standard Life received an additional £70m for their UK equity mandate, Morley an extra £35m for their bonds/property portfolio, and UBS Global Asset Management were awarded £27m for their multi-asset class brief.
Colin Pratt, the pension fund’s investments manager, thanked BGI for their long-service.
“Their assistance in restructuring the fund, where they acted as transition manager and transferred significant elements of the new managers’ requirements directly out of the pooled indexed funds in which Leicestershire already invested, helped to reduce the potential costs very significantly,” he said.
By Lisa Haines
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