UK tender roundup: Cardiff, Hillingdon
UK - Cardiff County Council has tendered a £25m global real estate fund-of-funds mandate, while London's borough of Hillingdon has appointed three new asset managers for a £180m mandate.
The Cardiff and Vale of Glamorgan Pension Fund is looking to appoint a manager for its new global real estate fund-of-funds mandate.
Cardiff County Council would like the £25m mandate to offer absolute returns of 8-10% net of fees, and is looking to award the contract for three years.
The £757m pension fund invested almost 60% of its portfolio in UK overseas equity as of March 2009, with another 20% in global bonds and 4.6% in property unit trusts.
Negative returns on all its mandates, with losses ranging from 0.2% to 31%, meant the fund lost £148m in assets in 2008-09 compared with the previous financial year.
Interested parties are asked to contact London-based consultancy bfinance for more details and submit proposals by 1 September.
Three investment managers have been hired for mandates worth as much as £180m by the London Borough of Hillingdon Pension Fund.
Marathon Asset Management, Ruffer and Fauchier Partners will manage the mandate, charged with producing equity-like returns with no greater volatility than offered by equity.
Initially, the companies, all awarded three-year contracts, will invest £90m, with the possibility that the sum could double to account for 40% of the pension fund's total assets.
Between 2007-08 and 2008-09, Hillingdon's pension fund lost almost a quarter of its value, sinking to £417m at the end of March 2009.
The low returns led to Capital Investment being replaced as one of the asset managers.