Leicestershire tenders targeted returns

UK - The £1.9bn (€2.8bn) Leicestershire County Council pension fund is looking for a targeted or absolute return manager to invest 5% of its portfolio.

Colin Pratt, investment manager for the fund, told IPE that the council had no preferences as to which instruments were to be used under this mandate.

"We have no view of what can and can't be used as long as their acceptable within the local authorities pension scheme arena. Hedge funds or fund of hedge funds would certainly be acceptable; any pooled fund would be acceptable."

The tender is for either a targeted return or an absolute return mandate. However, the contract notice states that "at the present time the preference is for a targeted return approach".

For the mandate all of the fund's cash, amounting to 1.5% of the portfolio, will be used. Where the remaining 3.5% will come from has not been decided yet. "The mandate will not  up and running for next six months or so. We will assess nearer to the date what is happening on the investment markets and decide where to take the money from", Pratt said.

The deadline for receipt of tenders is midday on 9 November 2006.