UK – The roughly £2.6bn (€3.8bn) Lothian Pension Fund is tendering for a fund manager to manage its £230m global fixed income portfolio.

According to a spokesperson for the 64,000-member scheme, “This is part of the normal review process.” There will be an in-house selection process.

The current manager, Henderson Global investors, will be allowed to re-apply for the brief, the scheme told IPE.

The mandate will run for six years with an option to extend for a further three years.

The portfolio will be managed as a global overlay on a sterling benchmark, and the manager will be able to deviate from the benchmark within limits that will be agreed at a later date, the contract notice said.

The notice said the mandate would be awarded to the most economically advantageous tender in terms of, amongst others: regulatory body membership, 10-year performance record, number of dedicated staff, the total value of fixed income securities under investment; fee charges, client list and investment style.

The closing date is August 3.

In other news, Mellon has announced that its transition management arm completed a transition management mandate in respect of a £130m global equity portfolio for the London Borough of Brent Pension Fund.

The move saw a shift of assets from Brent’s legacy portfolio to its target portfolio.

The news follows an earlier announcement in January that Mellon Capital Management Corporation – a Mellon subsidiary specialising in global quantitative strategies – is to manage a currency overlay mandate for the £150m overseas portfolio of the Brent pension scheme.