SCOTLAND - The £935m Aberdeen City Council Superannuation Fund has taken its first tentative steps towards a strategic change following its release of Friends Ivory & Sime.
FI&S was dropped from a £30m active UK equities mandate earlier this year. The brief was transferred on a passive basis to an incumbent manager, State Street Global Advisors.
Aberdeen said that restructuring at FI&S prompted the move. Last year Friends Ivory & Sime rebranded as Isis and acquired Royal & SunAlliance Investments.
Aberdeen has now completed its asset liability study and will be reviewing the results in December, following local council elections.
The fund touted a reduction in its equity allocation, the globalisation of its private equity portfolio and a first step into hedge funds.
Superannuation fund officer, Joanne Hope, said: “That will all go into the melting pot. But we have decided to start with a clean sheet.
“The asset liability study was purely on the equity/bond split. From that we will decide later in the year how we will [break] it down.”
The fund currently allocates 60% across global- and UK specialist equities and just over 30% to bonds, including cash.
Managers include Aberdeen Asset Managers, Capital International, Deutsche Asset Management, Merrill Lynch Investment Managers and Schroder Investment Management.
Hymans Robertson advises.
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