UK – The £2.5bn (€3.56bn) Lancashire County Council Pension Fund has appointed two new asset managers and retained two of his previous managers in a revamping of its portfolio. The changes followed an investment strategy review earlier this year.

In May the pension fund decided to switch 65% of its portfolio from a balanced to specialist investment strategy “with a desire to enhance the investment performance”, said Mark Bennett, the fund’s principal accountant.

Schroder Investment Management managed 22% of the re-tendered portion, Newton Investment Management 22% and Deutsche Asset Management 21%.

At that time Bennett told IPE that the managers in charge of the £600m equities and £360m bonds mandates, would be allowed to re-apply.

Newton and Schroder have been retained. Newton will manage a global equities mandate accounting for 25% of the fund subject to re-tender and Schroder a UK equities mandate, accounting for 12.5%.

JP Morgan Fleming has been appointed for an actively managed £300m equities mandate, 12.5% of the fund, which will be invested in the asset manager’s UK Specialist Equity product. The mandate will be managed on a segregated basis.

UBS Global Asset Management has been tapped for a bonds portfolio accounting for 15% of the fund.

The remaining 35% of the fund remains the same, with 25% being managed passively by Legal & General, 5% in property with Knight Frank, 3% in private equity with Westport Private Equity and 2% UK equities SRI with Henderson, said Bennett.

Lancashire County Council was advised by Mercer Investment Consulting and independent advisers.

Last May the fund also consolidated several custody providers with the appointment of ABN Amro Mellon as sole custodian.

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