UK - The £2.5bn (€3.7bn) Hampshire County Council Pension Fund has completely overhauled its management structure. In a move from multi-asset to specialist managers it has re-appointed three of the old managers and awarded mandates to seven new managers.
Aberdeen Asset Management, Schroder Investment Management and SG Asset Management will continue managing parts of Hampshire's portfolio under new specialist mandates. AllianceBernstein, Newton Investment Management, Western Asset Management Company, Legal & General Investment Management, State Street Global Advisors, CB Richard Ellis Investors, and Arlington Securities were appointed as new managers for the fund. Cordea Savills LLP, former manager of a £100m real estate portfolio, lost out in the overhaul. (The sizes and details of the new mandates are given below.)
"I am delighted with the calibre of firms that we have appointed to manage the fund's investments. I am sure that our new management arrangements will provide the investment returns required to meet the fund's future liabilities", said Ken Thornber, chairman of the Pension Fund Panel.
As the contracts of the fund's existing investment managers expire later this year the fund chose to overhaul the manager structure. "The appointments follow a comprehensive review of the Hampshire Pension Fund's assets and liabilities over the past 18 months with the assistance of the fund's actuary, Hewitt Bacon & Woodrow. Bramdean Asset Management also assisted with the process", a press release stated.
In the course of the overhaul the fund's asset allocation was also adjusted slighlty to 65% equities, 25% bonds and 10% real estate, with a shift of 5% equities to real estate.
Hampshire also appointed Bramdean Asset Management to provide advice on a possible allocation of up to 10% of the fund's assets to alternative investments such as private equity and hedge funds. Later this month "the tender process for procuring such advice on a longer term basis will start", the fund stated.
Portfolio/Management firm £m
UK equities low risk active management
Aberdeen Asset Management 200
Schroder Investment Management 300
UK equities high performance management
SG Asset Management 225
Global equities high performance management
Aberdeen Asset Management 300
Newton Investment Management 300
Global bonds active management
Western Asset Management Company 125
UK index linked bonds index tracking management
Legal & General Investment Management 250
State Street Global Advisors 250
CB Richard Ellis Investors (UK direct and indirect property) 200
Arlington Securities (European indirect property) 50