The London Borough of Redbridge Pension Fund, Ilford, England, hired three managers in a restructuring of its £300 million ($560 million) portfolio, said Jan Grant, principal finance officer. "We've moved from a balanced to a specialist strategy," she said.
AXA Rosenberg Investment Management was hired to run £120 million in active global equities. Standard Life Investments was hired to manage a £95 million active U.K. bond portfolio, and Newton Investment Management will run £60 million in an unconstrained multiasset-class strategy that aims to return four percentage points above one-month LIBOR.
The real estate portfolio was increased to 7% of assets, up from 4%. Fund officials invested a combined £21 million in real estate strategies with Schroder Investment Management and Merrill Lynch Investment Managers, which split the portfolio about equally. Merrill Lynch previously managed the entire real estate allocation.
Fund officials terminated Capital International and Schroder from balanced mandates totaling about £288 million. The balance of the fund's assets is in cash.
HSBC Actuaries & Consultants advised.