The Invensys Pension Scheme has dropped BlackRock from managing a $275.1 million fund of hedge funds mandate.
Financial News reported that the U.K. pension fund will now allocate to credit strategies after the fund’s trustees decided to divest from BlackRock after conducting a review of the mandate, which was included in its annual report that covered the 12-month period to March 31. By that date, about 80% of its investment in the mandate had been redeemed.
The decision to terminate its investment in BlackRock followed a period of below-target performance.
Invensys is among a slew of pensions based in U.K, including the Railways Pensions Scheme and the Universities Superannuation Scheme, that have been divesting from fund of hedge fund managers to other more direct investment strategies.
Invensys Pension Scheme manages approximately $6.6 billion for employees.