Devon County Council Pension Fund, Exeter, England, hired Legal & General Investment Management to provide currency hedging on passive equity portfolios, according to pension investment committee documents.
State Street Global Advisors previously provided currency hedging to the £4.1 billion ($5.5 billion) pension fund, managing the fluctuations of the value of sterling. The pension committee agreed that 50% of the currency exposure would be hedged down from 100% before. The pension fund outsourced its U.K., North America, Europe and Japan passive equity allocations to the £30 billion Brunel Pension Partnership, the pool of local government pension schemes established by the U.K. legislation and effective in April this year.
Overseas and regional allocations were combined and allocated to a developed world passive equity fund managed by LGIM.
Devon's pension fund passive equity managers UBS Asset Management and State Street Global Advisors were dropped in result of the transfer to Brunel.
Separately, the pension fund approved a new £75 million allocation to infrastructure, which will be invested via the Brunel pool. Additional details could not be learned.
As of March 31, Devon County Council Pension Fund invested 58% of the plan in equities, 29% in alternatives, including £146 million in infrastructure, and 13% million in fixed-interest assets.