London Borough of Lambeth Pension Fund hired seven managers to handle a combined £405 million ($631 million) — more than half of the £750 million fund’s assets.
Invesco Perpetual will manage about £90 million in real estate, joining UBS Global Asset Management and RREEF, which run real estate portfolios of about £5 million each, according to the fund’s website.
Baillie Gifford and MFS Investment Management will each run £85 million in active global equity. They replace UBS, AllianceBernstein and Aberdeen Asset Management, which ran approximately £225 million, £120 million and £100 million, respectively, also in global equity. When the searches began, Harry Musisi, the borough’s treasury manager, said the managers were able to rebid.
PAAMCO and BlueCrest Capital Management were hired to handle £50 million and £25 million, respectively, in hedge funds of funds. Principal Global Investors was hired to run £35 million in active currency, while Standard Life Investments was hired to run a similar amount in its Global Absolute Return Strategies fund.
Searches began in November 2009; Mercer assisted.
Mr. Musisi did not return requests for additional information by press time.