Falkirk (Scotland) Council Pension Fund selected Legal & General Investment Management to run £280 million ($408 million) in passive global equities, said Alastair Redpath, treasury manager at the £800 million fund.
Funding comes by terminating Capital International, which ran £125 million in international equities and about £95 million in U.K. equities, for performance, Mr. Redpath said. A Capital International spokesman was not available for comment by press time.
Remaining funding will come from reducing an active U.K. equities portfolio run by Schroder Investment Management to £120 million. There were no performance concerns with Schroder, Mr. Redpath said.
Falkirk moved to passive management primarily to give us additional flexibility (and the ability to move more quickly) when changing managers, Mr. Redpath said.