Border to Coast Pensions Partnership, Leeds, England, hired UBS Asset Management and FountainCap Research & Investment (Hong Kong) to run China equity allocations.
The local government pension scheme pool expects to allocate between £300 million ($388 million) and £500 million total to the two managers, a news release said.
The new allocation will be funded through a restructuring of the pool's £700 million emerging markets fund, a spokesman said. The emerging markets allocation, which is currently managed in-house, will be split into an ex-China portfolio and the two new allocations run by UBS and FountainCap.
The restructuring of the emerging markets fund is expected to be completed early next year.
"China is becoming increasingly important in the emerging markets benchmark, and we are very pleased to have selected two managers with local presence and specialist expertise to cover such a wide and diverse market," CIO Daniel Booth said in the news release. "They will complement our ex-China mandate in our planned restructuring of our emerging markets fund early next year, and we look forward to working closely with them to meet our partner funds' return objectives."
The pool's 11 member LGPS funds have about £46 billion in assets.
