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 
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.