Shake-up after LPFA review
The £2.8bn (E4.5 bn) UK London Pensions Fund Authority (LPFA) has appointed Henderson Investors, Goldman Sachs and Legal & General to manage a raft of investment mandates, after a major review of the fund’s asset structure revealed it needed a more active investment strategy.
As a result, the LPFA decided to release incumbent managers Prudential, Phillips & Drew and Mercury from the fund set-up.
Henderson picked up a £300m fixed interest portfolio, resulting from a switch of around £300m in assets from the former passive index-linked gilts portfolio.
The company also garnered an approximately £600m multi-asset portfolio and will act as an adviser to the fund on asset allocation changes. Goldman Sachs will manage a multi-asset portfolio of around £400m, with Legal & General appointed to run £500m of equities through an index-tracker pooled fund.
Hymans Robertson provided actuarial advice and assisted in the manager selection.
LPFA chairman, Bernard Harty, says the review outcome represents “a substantial change to the fund’s assets and their management to reflect the profile of the membership of the fund and consequent liabilities”.