Tyne & Wear tenders for investment consultant
UK – The two billion-pound (2.9 billion euro) Tyne and Wear pension fund has put out to tender a mandate for an investment consultant.
Watson Wyatt previously provided both actuarial and investment consultancy to the fund, but it was decided to review the position and test the market.
Following the withdrawal of Watson Wyatt from the local authority actuarial consultancy market, Tyne and Wear quickly appointed Hewitt, Bacon & Woodrow to fill the position. “We are now following on with a review of the investment consultant, and have put a mandate out to tender,” said Stephen Moore, head of pensions at South Tyneside Council.
The fund has a diverse investment management structure, employing nine different managers over a total of fourteen mandates. The structure includes discretionary mandates for the active management of UK equities, pan-European equities, global equities, Pacific equities, emerging market equities, global bonds and corporate bonds.
About 25% of the fund is managed on a passive basis. The passive mandate includes a proportion of the total allocation to UK equities, US equities and UK government bonds.
In its statement of principles, the fund says it intends to allocate up to five percent of the assets to private equity. This position will be built up over a period of years, largely by investment in funds of funds. The allocation will be top-sliced from the allocation to quoted equities.
Applications must be received by October 20.