London Borough of Southwark Pension Fund is searching for up to three passive managers to run a combined £600 million ($973 million), said Caroline Watson, investment manager at the £850 million fund.
BlackRock runs about £425 million in passive equities and bonds for the fund and can rebid. Additional funding comes from terminating AllianceBernstein from two — one growth, one value — active unconstrained global equities mandates worth a combined £191 million. The firm was dismissed for performance reasons, Ms. Watson said in an e-mailed response to questions. Mark Atkinson, spokesman for AllianceBernstein, declined to comment, citing company policy.
Increasing passive investments was recommended by the fund's investment consultant, Aon Hewitt, after AllianceBernstein was terminated in November.
The consultant is assisting in the search.
Proposals are due Sept. 27. A selection date has not been determined. Additional information is available from Ms. Watson at [email protected]