Multi-manager Mercer has revamped its Australian share portfolio, slashing the line-up in half from ten to five managers.
The $1 billion mandate win by BlackRock this week is the only new addition to the manager line-up.
The win replaces six investment managers with BlackRock managing 25 per cent of the portfolio.
The six managers that have been terminated include Axa Rosenberg, Barclays Global Investors, BT Funds Management, Lazard, Schroders and Wallara Asset Management.
The revised line-up now includes Alleron Investment Management, Ausbil Dexia, Perennial Value Management and Tyndall Investment Management. They will each manage 17.5 per cent of the portfolio.
"Multi-managers have been criticised for adding too much diversity to their portfolio," Mercer chief investment officer Russell Clarke said.
"We wanted to have full conviction in a small number of managers that would add greater focus and accountability to our portfolio, Both BlackRock and Perennial will focus on tax-effective strategies.
"The investment industry has matured to such an extent that investors increasingly expect tax-effective solutions within mainstream asset classes like Australian shares."
