UBS Global Asset Management has been terminated from a contract to run £219m (€240m) of retirees' money at the London Pensions Fund Authority, suggesting that its chief executive John Fraser has further to go to convince clients that his efforts to improve investment performance are bearing fruit.

According to documents published recently at the LPFA's website, the £3.6bn scheme let UBS go in October, and is now searching for a replacement. UBS managed the money according to a "target return" process, meaning it can invest in what it likes, so long as it hits a target of retail price inflation plus 6 percentage points.