UK local authority schemes are set to launch a national framework agreement for passive investment management, valued at up to £140m (€179m) in fees and charges.
Norfolk County Council, which has been overseeing the National LGPS Frameworks, announced that it would soon be launching a procurement exercise for passive management, which it estimated could earn associated managers £20m-140m in fees.
Supported by local authority funds from the Cambridgeshire, Essex, Hampshire, Kent, Northamptonshire and Suffolk councils, the framework aims to be open to all emerging LGPS asset pools, as well as statutory bodies including the Pension Protection Fund.
Further details of the four-year framework are expected to be discussed during a concept viability event being held in London on 20 June.
The passive investment framework is being considered after a number of LGPS, including a consortium of councils in the Shires and those based in Wales, have completed tenders for new passive managers.
In other news, a Dutch consultant is seeking an investment manager for a €20m infrastructure mandate, using IPE Quest.
Sweco Capital Consultants (SCC), behind search QN2197, said its client would consider exposure to a range of OECD countries – those member states based in Europe, as well as Canada, the US, Australia and New Zealand.
SCC said the €20m commitment is expected to be in place by the end of the year, and that interested parties should reply to a request for proposal.
A longer request for information will then be sent out, with a shortlist of up to three suitable funds invited to present directly to the client.
Managers should only submit infrastructure funds larger than €250m, with at least 10 assets already within the fund.
The core, core-plus, or value-add strategies pursued by the funds should target a net internal rate of return of no more than 6.5%, and should achieve this without leveraging assets above 80%.
Managers should submit net of fees performance to the end of May 2016 by 20 June.
The IPE news team is unable to answer any further questions about IPE Quest tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email email@example.com.