London Borough of Islington terminated Allianz Global Investors as its alpha equity manager, said a spokesman at London CIV, a pool of 32 London local authority plans.
Allianz, which was appointed by the Islington borough prior to the 2015 when London CIV was established, managed about £130 million ($158 million).
Following the pooling of London local authority plans, Islington transferred its allocation to a sustainable equity fund, managed by RBC Global Asset Management.
RBC manages about £430 million for the £25 billion London CIV.
An Allianz spokesman said the firm was "aware of Islington's intention to terminate and in March LCIV confirmed that a redemption could be expected."
"We can confirm that we recently received formal notice of this full redemption by mid-August and have worked constructively with LCIV management throughout this process," he said.