Charities Aid Foundation (U.K.), West Malling, England, hired UBS Global Asset Management to run about £350 million ($635.5 million) in active U.K. equities and Insight Investment to manage £150 million in active U.K. bonds, said Tracey Reddings, executive director-charity financial services division. The managers replace Deutsche Asset Management, which had run the money in an active balanced portfolio for the past eight years.
Officials of the £1.5 billion foundation had been monitoring DeAM's performance as well as the firm's prospective sale for a year to 18 months, and while DeAM's performance picked up "the last quarter or so," the manager often struggled to outperform its FTSE All-Share index benchmark, Ms. Reddings said. Foundation officials also decided to hire multiple managers to help diversify the risk for investors. The U.K. Charities Aid Foundation also has about £100 million in a FTSE All-Share index fund managed by Legal & General, Ms. Reddings said, adding foundation officials wanted to differentiate the actively managed investments from the index fund.
Elaine Bartleet, a Deutsche Asset Management spokeswoman, said officials at the firm "are obviously disappointed" to lose management of the Charities Aid Foundation assets but understand the foundation's "desire for a change of style."
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