Dyfed Pension Fund (DPF) has awarded a £150m (€179m) global equity mandate to Threadneedle Investments, following a public tender.
The mandate represents just under 9% of DPF’s £1.6bn portfolio.
DPF said the mandate reflects a move away from a regionally focused equity portfolio towards a more global approach.
It will be funded by reallocating some of DPF’s existing investments in UK and European equities into Threadneedle’s Global Equity Income strategy, managed by Stephen Thornber.
Anthony Parnell, treasury and pension investments manager at Carmarthenshire County Council, which administers DPF, said: “Our fund works with only a small number of investment mangers, and this mandate is part of our strategy to take a more global approach to equity investing to deliver the best returns for our members.”
Parnell added: “We liked Threadneedle’s global equity income approach and its emphasis on quality companies, and the characteristic of protection in falling markets, which this strategy aims to provide.
“We were also impressed by their commitment to a high-quality client service delivery.”
The strategy seeks investments in “quality income” companies that deliver a high and sustainable dividend, but also generate growth.
Thornber has run the Global Equity Income Strategy since its inception in 2007.
DPF’s adviser is independent investment adviser Eric Lambert, with Allenbridge Epic assisting in the search.