UK - Shropshire County Council is seeking one or more managers to run a new global equity portfolio for the £740m (€824m) Shropshire Pension Fund.
The new mandate is being offered following a review of the pension fund's strategic asset allocation as its 75% allocation to equities and property currently includes 25% in UK equities, 9% each in US and European stocks, 5% each in Japan and emerging markets and 4% in Pacific (ex Japan) equities.
Other investments include 10% in hedge funds, 3% in private equity and 5% in European property, including the UK, while the other 25% of the fund is invested in fixed interest comprising UK index linked and aggregate bonds and global aggregate bonds.
However, as a result of the review Shropshire has now decided to reduce its UK equity holdings from 25% to 15% and create a new 10% allocation to global equities to sit alongside its existing regional managers, who are all being retained.
The tender notice revealed the mandate is valued at around £74m and the council is seeking to appoint "one or more investment managers for an investment strategy on a segregated or pooled basis with client specific performance objectives" for the new portfolio.
Shropshire is also in the process of completing the appointment of a second global aggregate bonds manager, following a tender search initiated in December to take advantage of perceived opportunities.
The new manager will sit alongside the existing global bonds mandate run by Pimco as the contract will be funded by the reallocation of the UK aggregate bonds portfolio currently run by Aberdeen. (See earlier IPE article: Shropshire to add second global bond portfolio)
Tender submissions should be received by 16 June 2009 and further details can be obtained from Shropshire County Council.
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