London Borough of Lewisham Superannuation Fund hired UBS Global Asset Management and BlackRock to run a combined £475 million ($739 million) in passive equities and bonds, an official at the £773 million fund confirmed.
Funding comes from terminating active global equity managers RCM and AllianceBernstein from accounts of £171 million and £166 million, respectively. Also, UBS was terminated from a £138 million active U.K. bond mandate. Reasons for the terminations were not disclosed.
Sizes of the new passive portfolios have not been determined, according to the official, who asked not to be identified. Details on the equity and bond portfolios could not be learned.
Investment consultant Hymans Robertson assisted in the search, which began in August.
Separately, hedge fund-of-funds manager Fauchier Partners was terminated from a £21 million mandate. Fund trustees are expected to consider replacement options at a September meeting.