UK - The Environment Agency's £1.4bn (€1.6bn) Active Pension Fund has extended a global equity mandate. The University of Leeds is seeking a property manager for its non-USS pension scheme, and the City of London is searching for investment consultants.The Environment Agency's pension fund, which has a strong focus on environmental risks and opportunities, has confirmed it has topped up its existing £35m active global equity mandate with Impax Partners.
It appointed Impax to the original mandate in August 2008 - alongside RCM and Generation - following the termination of mandates by State Street and Capital International. However it has now confirmed the global equity mandate will receive a further £15m of funding. (See earlier IPE article: Environment Agency's SRI drive boosted by equity awards)
In the latest accounts for 2009, the Environment Agency noted that the strategic allocation of the fund remains 31.5% in UK equities, 31.5% in global equities, 13.5% in index-linked gilts, 13.5% in corporate bonds, and 5% to both property and private equity.
But it added: "To maintain the percentage of the quoted equity and bonds close to these percentages the fund has adopted this year a rebalancing programme. In addition a rebalancing programme has been put in place to maintain a regionally diversified global equity portfolio."
Howard Pearce, head of environmental finance and pension fund management for the Environment Agency, said: "We are pleased to award Impax this extra funding. Impax was selected because of the quality of its investment processes, integration of financially material environmental risks and opportunities, performance track record, organisation and team stability, client service and reporting and active participation in the UN PRI."
Leeds University highlighted that the property fund would primarily invest in UK commercial property, and is offering a five year contract with the possibility of a further three year extension.
Currently the pension fund, which is for non-academic staff who are not covered by the Universities Superannuation Scheme (USS), is 62% funded and employs three external investment managers to maintain an asset allocation of 70% equities and 30% fixed income.
However, following a review of the investment strategy over the 12 months to March 2009, the trustees agreed to maintain the 70% equity allocation but also agreed to invest around 10% of the scheme's assets into property, dependent on the state of the property market.
The closing date for submissions is 9 November 2009 and further information can be obtained from central purchasing office at the University of Leeds.
The City of London is offering a five-year contract and the closing date for applications is 21 December 2009. Further information is available from the City's procurement department.
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