UK - Lloyd George Management has lost the right to manage the Lothian Pension fund's emerging markets equity mandate, worth around £160m (€214.4m), to the benefit of Aberdeen Asset Management.
A statement issued today by the £3.2bn pension fund, which is managed on behalf of 17 Edinburgh-based employers in the Edinburgh and Lothian region including Edinburgh City Council, said Aberdeen will now invest its global emerging markets equities exposure following a tender process.
While the exact amount is not declared, Lloyd George had been the manager of its emerging markets mandate since 1998 and the pension fund's investment strategy to March 2006 stated the fund allocated approximately 5.1%, or £163.2m, to the sector.
However, its contract to run the money was up this year, so Aberdeen will now be charged with delivering outperformance of 3% per annum over the MSCI emerging markets index on a rolling three-year basis.
Lothian achieved an 8.1% annualised return over 10 years to March 31, 2006, according to the pension fund's 2006/07 annual report.