UK - The £550m Westminster City Council pension fund has tendered for five specialist managers, citing a decision to restructure, and the performance of existing managers Aberdeen and Henderson as the reasons prompting their search.
Aberdeen and Henderson currently manage approximately 50% of the funds’ assets each, equating to two approximate mandates of £225m.
These are focussed on domestic and global equities, including US, Japan, Pacific and Europe, and also fixed interest securities.
Treasury manager Helen Strand said the pension fund was revising the management structure so that two managers would invest solely in UK equities, another two managers in global equities, with one further manager concentrating on the fixed interest portfolio.
With regards to the performance of the current managers, she said: “We thought they could perform better. Looking at our fund over the past couple of years it has not performed particularly well compared to other local authority funds.”
Strand added that Aberdeen had been Deutsche Asset Management at the time the decision to review managers was taken by the pension fund’s investment committee. Aberdeen’s acquisition of the UK arm of DeAM was completed in September 2005.
Aberdeen declined to comment on the review and Henderson were unavailable at the time of going to press.
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