UK – Baillie Gifford could be axed as active balanced fund manager of the £1.4bn (€2bn) West Sussex County Council pension fund following the scheme’s regular review process.

The fund has tendered a £650m (€950m) balanced brief, which Baillie Gifford has managed since 2002.

According to a spokesperson for the scheme, “This is part of a regular procurement programme under best value. The fund has two active balanced managers and each is reviewed every four years.”

UBS is the scheme’s other active balanced fund manager. Its portfolio will be up for review in 2008.

The fund also has a direct property portfolio and a private equity manager, Pantheon Ventures. It is also up for renewal in 2008.

Baillie Gifford and UBS can both apply for the £650m mandate, the scheme told IPE.

Baillie Gifford told IPE it would be reapplying for the tender. A spokesperson added that the firm has built a “good relationship” with the fund over the past three years.

No consultant will be used in the tendering and selection process. “WSCC does not use consultants,” according to the scheme spokesperson.

She added that the scheme is not looking to change the management style of this portfolio. It is also only looking to appoint one manager for this brief.

“The portfolio is currently managed on a balanced active management style and will continue to be managed as such.”

According to the tender document, “allocation of part of the fund to a specialist manager may be considered at some future date”.

The closing date for tenders is June 12.

The pension scheme has 21,569 contributors, 11,370 pensioners and 10,199 deferred pensioners.

Topics