UK- Hampshire county council’s £2.1bn (e3.4bn) pension fund has fired Morley fund management from a £360m (e585m) balanced mandate and replaced it with SG Asset Management.

A spokesman for the fund said they fired Morley for underperformance and because some members of the original team had moved on.

Morley was set a performance benchmark of the Caps median plus 1% but it failed even to meet the median.

As for the investment team, Morley has effectively changed hands twice since Hampshire appointed it to run the fund and many of the original managers have left.

Speaking about the appointment of SG the spokesman says :“we felt that we were getting high calibre staff and it is a young evolving company.”

SG is working to a bespoke benchmark based on an ALM study carried out by the consultants Bacon & Woodrow in 1999.