UK fund manager Gartmore has lost out on a roughly £22m (E33m) balanced mandate held for the £70m pension fund of the UK’s Economist publishing group, in favour of Legal & General’s (L&G’s) index tracking Consensus Fund, following underperformance.
Peter Johnstone, international compensation and benefits manager at The Economist, said: “We had looked at the possibility of index tracking funds for a while and felt there was a lot to be gained by using them. Gartmore hadn’t been performing particularly well, and this moved the issue on.”
L&G was selected from a shortlist of three provided by Buck Consultants – which included Gartmore’s own tracker fund – after showing slightly better performance than the competition, Johnstone added.