UK - The £670m Shropshire County Council Pension Fund has awarded Goldman Sachs Asset Management (GSAM) and Majedie Asset Management UK equity mandates worth a total £160m at the expense of Deutsche Asset Management, State Street Global Advisers and Barclays Global Investors.
Head of finance Graham Chidlow said the fund had awarded a £150m UK quantitative equity brief to GSAM and a £50m brief to Majedie.
The fund re-tendered its entire portfolio late last year following a review of its UK equity structure. As a result of the restructuring of the fund’s asset allocation, the allocation to UK equities had reduced, prompting a review of the portfolio management.
Before the review, Deutsche, State Street and BGI managed equal shares of the portfolio.
The objective of the GSAM mandate is to achieve consistent outperformance with a targeted tracking error of 2.5-3%, by combining traditional fundamental analysis with quantitative modelling, GSAM said.
Sally Marshall, head of UK local authority business development, said: “This new mandate complements the US enhanced index portfolio [Shropshire] gave us in 2003.”
The latest Shropshire brief marks GSAM’s 14th local authority pension fund mandate.
This week's edition of Professional Pensions is out now
MPs failed to place legislation into the Financial Guidance and Claims bill that would have made pension guidance default, which Just Group director Stephen Lowe said left a "bitter taste".
Aegon has called for the government to double the tax exemption on employer-arranged pension advice, up from £500 to £1,000.
Institutional investor confidence in Europe rose by 8.9 points in April with each region showing growing appetite for risk, according to State Street Global Exchange.