Strathclyde Regional Council superannuation fund is putting around £2bn ($3.2bn) worth of assets from its £5.1bn pension fund out to tender.
According to Geoff Singleton, depute director of finance at Strathclyde, the move has come after a six- year period in which: no review of the pension fund had taken place and needed to be looked at", and follows a desire by the council to "reduce volatility in the returns of its funds".
"It marks a change towards a passive element in the fund's management structure," he added.
About £1.3bn is to be run in a multi-asset brief, for which present manager Schroders has been invited to re-submit a tender by June. A smaller multi-asset mandate of about £650m, similar to the equity brief presently run by PDFM, will also be decided in June, with PDFM asked to tender.
Baillie Gifford has been confirmed as manager of the 10% of the fund in UK equities and Gartmore, which manages the 6% (£300m) in international equities, has been asked to reapply.
A new bond brief of £190m and a property brief of £400m have arisen due to the demise of previous manager Scottish Amicable. Flemings has already been chosen to manage two merged overseas small-cap portfolios."