UK- The Scottish Borders Council pension fund has put out to tender a new £44m (e69m) fixed-income specialist mandate. Between five and ten managers are expected to compete in the beauty contest, with a short-list anticipated by the end of September.
Baillie Gifford and UBS Global Asset Management, which have managed the £200m local authority scheme as a balanced fund the last ten years, could lose their bond allocation as part of the new mandate. It is understood that both managers will be invited to apply for the mandate, but a specialist fixed-income manager is wanted.
Currently, UBS is responsible for around £115m in global active and passive balanced briefs, and Baillie Gifford manages the remainder on an active balanced basis.
Says Alan Bowman, head of financial administration at the local authority: “the decision to establish the specialist fund was made following a strategic review undertaken by Mercers Investment Consulting.”
Scottish Borders Council pension fund is the latest in a line of schemes choosing to move away from the traditional balanced fund and appoint specialist managers.