North Yorkshire Pension Fund, Northallerton, England, hired Credit Agricole Asset Management and European Credit Management to handle £99.4 million ($181 million) each in U.K. gilts, said Michael Lord, a spokesman for the £880 million fund.
Partial funding will come from terminating Henderson Global, which managed 22% of the scheme's assets, for underperformance, said Mr. Lord. The fixed-income portion of Henderson's account will be distributed equally to Credit Agricole and European Credit Management, while the equity portion will be evenly distributed among existing global balanced managers Baillie Gifford, Barclays Global Investors and Standard Life Investments. The remainder of the new hires' portfolios will be funded by trimming the fixed income portion of BGI, Standard Life and Baillie Gifford's portfolios. The changes were made following a review of the fund's investments. The new asset amounts handled by the three firms could not be learned by press time.
Richard Acworth, a Henderson spokesman, did not return calls by press time.
"We have introduced these changes to enhance the efficiency and effectiveness of the way the pension fund assets are managed. It is hoped that the new arrangements will improve the fund's ability to meet the exacting performance standards set by the pension fund committee," Councillor John Weighell, chairman of the pension fund committee and leader of the North Yorkshire County Council, said in a news release.