London Borough of Sutton Pension Fund appointed six managers divided into two separate framework agreements to manage two portfolios: a multiasset absolute-return portfolio estimated to be between £25 million ($40 million) and £75 million and an unconstrained global equity strategy between £50 million and £70 million, said Philip Crow, interim head of financial planning.
BlackRock was appointed in both framework agreements, which comprise preapproved managers that will run certain strategies for the £350 million pension fund. Newton Investment Management, Baillie Gifford and Pyrford International were preapproved for the absolute-return portfolio. Harding Loevner, Sarasin & Partners and Schroder Investment Management were preapproved for the global equity strategy, Mr. Crow said.
Funding for both strategies has not been finalized. However, pension fund officials said in a previous interview that the funding will likely come from reducing an active global equity portfolio managed by Newton estimated at about £130 million and a £110 million passive global equity strategy run by Legal & General Investment Management.
Hymans Robertson advised. RFPs were issued in the third quarter.
