The London Borough of Hillingdon pension fund has appointed Legal & General Investment Management (LGIM) to manage its index-tracking investments, replacing State Street Global Advisors.
The £215 million (€283 million) mandate, which will be invested across LGIM’s range of index funds, will benefit from a commercial agreement with the London Collective Investment Vehicle, a pooled fund arrangement involving London boroughs.
Councillor Philip Corthorne, chair of the pension committee at the £810 million fund, attributed the council’s decision to a desire to cut costs.
Adam Willis, head of index and multi-asset distribution at LGIM, said that the firm’s understanding of the specific challenges facing the local authority sector meant LGIM was able to offer investment solutions that meet clients’ needs.
LGIM said it is the largest manager of local authority assets, overseeing £44 billion. In November last year, the firm won a £6.5 billion passive mandate from a group of seven pension schemes, comprising Cheshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, Warwickshire and Worcestershire. Overall, it manages around £300 billion in passive assets.
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