UK – The £1.24bn (e2bn) Devon County Council pension fund has stripped around a third off a £235m balanced mandate with UK fund manager Phillips & Drew and brought in Capital International to manage the balance, with each firm given12.5% of the total portfolio to run on a global multi-asset basis.

Phillips & Drew formerly ran just under 20% of the fund’s assets.

Both new briefs will involve managing around £150m with a performance target of plus 1% per annum against the WM Local Authority Weighted Average.

Bacon & Woodrow advised the Council on the selection.

Phillips & Drew will shortly begin transferring assets to Capital International who will also be transferred cash that has been accumulated for the purpose of the new mandate.

The fund says the change in management structure has been designed to improve its chances of out-performing in all market conditions.

The balance of the fund will continue to be managed in-house, largely on a passive basis.