UK- Shetland Islands County Council has awarded the mandate for its £100m (e158m) pension fund to Capital International. UBS Global Asset Management, formerly Phillips & Drew, had been running the portfolio for five years, but lost the beauty parade when the five-year mandate period was over.

“We award mandates for five years, and although UBS performed well, we thought that Capital International were a better bet for the five years ahead,” says Jeff Goddard, trust and treasury services manager at the local authority.

Shetland Council had originally been considering employing two managers to run the portfolio, but decided against it.

Although Capital International were informally granted the mandate back in the summer, monies were not transferred until recently as a new custodian had to be appointed.

Says Goddard: “Originally the scheme’s custodian was in-house, but being a US firm, Capital asked for an external custodian to be appointed.” Northern Trust was awarded the mandate.

The fund comprises one balanced portfolio, of which 82% is allocated to equities. “The scheme is quite immature, and we are taking a long-term view,” says Goddard.