The London Borough of Hillingdon Pension Fund has hired Legal & General Investment Management (LGIM) to oversee a £215m (€238m) index-tracking mandate.

The local authority fund, which had £810m, hired LGIM to replace State Street Global Advisors, first appointed in late 2008.

According to its most recent annual report, from March 2015, SSgA’s mandate for Hillingdon was worth £161m, equivalent to 20% of scheme assets.

Philip Corthorne, chair of the fund’s pensions committee, cited a desire to cut management costs when describing the reasons for LGIM’s hire.

“We have chosen LGIM because of its expertise in index-tracking fund management and its broad range of cost-effective pooled funds, which will enable us to take a step closer towards the government’s pooling agenda, with management and reporting of the mandate to eventually be carried out by the pool.”

LGIM was among the first managers hired by the London CIV, the pooling vehicle for London’s local authority funds, and was set to manage a number of passive equity sub-funds.

The manager is the largest single manager of local authority assets, overseeing £44bn, a figure significantly boosted after it won a £6.5bn passive mandate from seven pension funds in late 2015.

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