London Borough of Harrow Pension Fund dismisses currency managers
The London Borough of Harrow Pension Fund has dismissed both of its active currency managers after disappointing performances, according to sources who have spoken to EuromoneyFXNews.
The pension fund has terminated the mandates of BNY Mellon’s £5 million currency mandate and another mandate with Record Currency Management. The fund is looking at replacing active currency management with more wide-ranging, absolute return mandates – which may or may not include active currency elements within them – but it is not looking to appoint specific active currency managers, according to an unnamed official at the pension fund.
According to the fund’s Statement of Investment Principles, its performance target on the active currency portion of its mandate was 18% of the value of the fund at the start of each three-year period of gross fees, while the passive portion was to match the benchmark, less 15 basis points gross of fees.
BNY Mellon’s target was 22% of the value of the fund net of fees.