Mandate roundup: Dorset, JPMAM, Baring, Insight, Lothian, Baillie Gifford, Unicredit [updated]
EUROPE - Dorset County Council pension fund has recently awarded three new mandates to asset managers in the UK, worth over 10% of total assets.
The local authority fund has selected JP Morgan Asset Management (JPMAM) and Baring Asset Management to manage an emerging market equities portfolio and a diversified alternatives mandate, respectively.
Under the agreement, JPMAM will manage an active global emerging market equities portfolio worth approximately £50m (€59m), while Baring Asset Management will manage an active diversified alternatives/growth mandate valued at approximately £70m.
According to the tender notice, the local authority fund selected JPMAM and Barings on a quality, technical merits and price basis.
Additionally, the £1.4bn Dorset fund selected Insight Investment Management to provide investment management services to the scheme, focusing specifically on fund liability management, through the use of bonds and other vehicles.
Moving to Scotland, the Lothian Pension Fund has selected six asset managers as part of a framework agreement for a £500m unconstrained global equities mandate.
Baillie Gifford, Cantillon Capital Management, Nordea Investment Management, Lazard Asset Management, as well as Nataxis Asset Management and BNY Mellon Asset Management have been chosen as the shortlist for the framework, which would see the managers in charge of around 15% of the the local authority fund's £3.5bn in assets.
Lothian has yet to decide how to divide up the £500m mandate, but a spokeswoman said 3-4 managers would likely be appointed, while the remaining companies would be awarded a portfolio should a new appointment be needed over the course of the 10-year contract, worth £35m overall.
Managers will be expected to return a performance above 3% on a 5-year rolling basis, with the fund's benchmark comprising both developed and emerging market equities.
Lothian added that a large proportion of the portfolio would be managed on a segregated basis.
In other news, the Unicredit Pension Fund has selected Generali Immobiliare Italia to form and manage a real estate fund, which will comprise Unicredit properties for an overall value of some €500m.
Generali Immobiliare Italia will pursue long-term management policies, consistent with the needs of Unicredit Pension Fund.