Greenwich’s local authority pension fund is tendering a £100m (€139m) absolute return mandate, bringing to £700m the value of tenders recently conducted by the scheme.
In the tender, for a multi-asset pooled fund, Greeenwich said it was looking for a manager to outperform the three-month sterling LIBOR rate by a significant margin, defined as 3-5%.
The local authority pension scheme (LGPS) said it would expect the pooled solution to grant it exposure to asset classes including equities, bonds, currencies, commodities and property but added that it would not consider hedge-fund-of-fund solutions.
Asset managers have until 23 February to register their interest with the council’s procurement department.
| Greenwich strategic allocation | |
|---|---|
| Asset Class | Target |
| UK equities 5% cap weighted | 15% |
| Overseas Equities | 35% |
| Global equity passive | 15% |
| Smart beta | 10% |
| Emerging markets active | 10% |
| Property | 10% |
| Bonds | 20% |
| Multi-asset credit | 10% |
| UK Aggregate Bond Fund | 10% |
| Multi-asset strategy | 10% |
| Diversified alternatives | 10% |
The tender comes as the scheme implements its new strategic asset allocation.
The new allocation calls for a 10% exposure to multi-asset strategies, standing alongside a 10% exposure to diversified alternatives, for which it launched the manager search in November.
It has also tendered £400m worth of equity mandates and, more recently, a £100m emerging market equity mandate.
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