UK – The £6.6bn (€9.7bn) West Midlands Metropolitan Authorities Pension Fund is tendering two new briefs – one currency alpha mandate and an active specialist currency overlay mandate.
The 219,000-member scheme is looking for one or more managers to run a £60m pure currency alpha brief with a long-term target.
According to an investment executive at the scheme, “If the fund decides to select a manager or managers, it will form part of the alternative asset allocation.”
She added that no more than five managers would be short-listed before the final selection.
There is no minimum or maximum duration, and the mandate may be reviewed and/or terminated at any time by the scheme based on performance and quality of service, said the contract notice.
The scheme is also searching for two or more managers to run an active specialist currency overlay mandate.
The assets on which the overlay is to be managed are valued at roughly £2.2bn of overseas equities.
“We will look to hedge between 50-75%,” the scheme told IPE.
The pension scheme will conduct its own due diligence interviews, and trustees will make their selection with input from consultants, which include bfinance and Mercers.
The contracts will be awarded to the most economically advantageous tenders in terms of performance, philosophy, product, personnel and price.
The closing date for both is August 29.
Meanwhile, the University of Sheffield has tendered investment management services to manage the investment of its Pension Scheme (1975) for Non Academic Staff as part of a periodical review.
Legal & General and Fidelity are the current respective passive and active managers of the scheme of about £60m. Both will be asked to re-tender, among the total of nine tenders that will be invited to participate.
Last year, the university ended a mandate with Deutsche Asset Management.
"After underperformance the Trustees no longer wanted DeAM's services," says pension administrator Amanda Bullock.
And elsewhere, the £950m Bedfordshire County Council pension fund has tendered a new £100m global equities brief.
It’s also made a £50m allocation to commodities.