UK - Merrill Lynch Investment Management and Deutsche Asset Management have both lost a balanced mandate as the trustees of the Medical Research Council (MRC) Pension Trust decided to switch to specialist briefs.
Capital International and Mirabaud Investment Management have been awarded 125 million pounds (186 million euros) each respectively for global equities, including UK, and UK equities.
The Medical Research Council, a national organisation funded by taxpayers, said in a statement the review had been prompted by the “increasing maturity“ of the scheme.
“One important outcome was the trustees’ decision to focus on the investment strategy more specifically on the scheme’s own objectives and characteristics rather than following the strategy of a peer group,” the MRC said.
State Street has been appointed global custodian after “a competitive selection process”, while Goldman Sachs has been chosen to manage the transition of assets.
Barclays Global Investors, which passively manages 130 million pounds on a consensus index basis, has been awarded a further 45 million pounds in UK equities tracking the FTSE All Share Index, to be passively managed.
Royal London Asset Management has also been awarded a 55 million pound specialist bond brief.
The MRC said assets allocated to its property portfolio, currently 100 million pounds managed by Henderson Global Investors, have been increased earlier in the review process.
Hugh Dunlop, secretary to the trustees of the MRC pension scheme, said: “The three selected specialist managers greatly impressed the investment committee with the clarity of their investment philosophy and process and their performance record.”
Dunlop was not immediately available for further comment.