Camden fulfils first stage of restructuring
UK - Camden County Council has completed the first phase of its portfolio restructuring and confirmed the appointment of four new investment managers.
The council offered management tenders in July 2008 to take responsibility for passive securities, a fixed income mandate and its global equity portfolios after a review of its asset allocation strategy, as it had employed UBS, Schroders and Baillie Gifford since 1992. (See earlier IPE article: Camden starts first phase of portfolio restructure)
Following the tender process, Camden has appointed Legal & General as a UK passive equity manager and UK index-linked manager, while Goldman Sachs has been awarded the active fixed interest bonds mandate and the active global equities portfolio have been split equally between Aberdeen and Fidelity.
Camden offiicals have confirmed the new appointments replace the previous manager line-up, though both Schroders and UBS will continue looking after the Property Unit Trust Portfolio.
In addition, minutes from the last meeting of the pensions sub-committee in December revealed the council had agreed to alter its asset allocation so all global equities will be invested on an active basis and all UK equities will be invested passively.
It was also agreed the fund should increase its exposure to overseas equities by adopting a split of up to 45% in global equities and 30% in UK equities.
Camden confirmed the next stage of the portfolio restructuring will begin with a tender for a property manager within the next few months, followed by a search for an alternatives manager to meet an earlier decision by the pensions sub-committee to move around 10% of the fund into the asset class.
The council is still in the process meanwhile of appointing a global custodian for the pension fund, which has assets under management of between £500-700m (€562m-787m). (See earlier IPE article: Camden to consolidate custody services)
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