Avon Pension Fund, Bristol, England, terminated Gartmore Investment Management and Merrill Lynch Investment Managers, said Tony Worth, investment officer at the £1.48 billion ($2.1 billion) fund. Gartmore ran £450 million in a passive TAA portfolio, and MLIM managed £450 million in an active multi-asset portfolio. The managers failed to meet performance targets, and trustees wanted to use specialist money managers, he said. Lorna Meuber, MLIM spokeswoman, would not comment. Officials at Gartmore also declined comment
The plan also hired Capital International to manage a £518 million active multi-asset portfolio; Threadneedle Asset Management, £207 million in active U.K. equities; and Wellington Management International, £162 million in active international equities. Incumbent manager BGI, which manages a £444 million passive multi-asset portfolio, was hired to run a £118 million passive bond portfolio. Previously, BGI managed £450 million in a passive multi-asset portfolio.
Jupiter Asset Management will continue to manage £29 million in a socially responsible U.K. equity portfolio.
Separately, the plan later this year will review its WM Local Authority Average benchmark and may adopt a customized benchmark instead, he added.