UK - Flintshire County Council has appointed State Street Global Advisors (SSgA) to run a £20m (€22.4m) absolute return mandate for the Clwyd Pension Fund.
In June the council issued a tender on behalf of the scheme for one or more managers to run a specialist fund of hedge fund or multi strategy mandate. (See earlier IPE article: Clwyd tenders hedge fund portfolio)
It has now revealed the pension fund, valued at £697m at 31 March 2009, has awarded the mandate to SSgA. The £20m of assets will be invested in the SSARIS Multi-Manager Absolute Return Strategy, an absolute return fund of hedge funds with a target return of 3-6% over US Treasury bills, over the market cycle.
SSgA claimed the strategy "combines a convergent approach, one based on fundamental valuation of companies, with a divergent approach, which focuses on trends and momentum factors that reflect changing market themes and investor sentiment."
Philip Latham, Clwyd Pension Fund manager from Flintshire County Council, said: "We are confident that SSARIS will meet our investment objectives with its Multi-Manager Absolute Return Strategy."
The mandate follows the appointment of seven external advisers as part of a framework agreement in October 2008, after Clywd completed its fund structure review in 2007. This included the appointment of a commodities and portable alpha manager. (See earlier IPE articles: Gloucester seeks equity manager as Clwyd picks advisers and Clwyd finds commodities and portable alpha managers)
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