Strathclyde casts net for unconstrained global equity

Strathclyde Pension Fund, Glasgow, Scotland, is searching for at least one manager to run up to £500 million ($798 million) in active unconstrained global equity, said Richard Keery, investment manager at the £11.2 billion fund.

If a selection is made, funding would come from reducing the portfolio size of one or more of the fund's existing active unconstrained global managers. As of March 30, Lazard Asset Management ran £536 million; AllianceBernstein (AB), £345 million; Invesco (IVZ), £322 million; and Edinburgh Partners, £250 million.

Mr. Keery said the search is being performed to test the market and that there are no plans to terminate any existing managers. However, he said “one or two” unconstrained global managers had delivered “disappointing” performance recently. He would not name the managers.

According to meeting minutes on the fund's website, all of the unconstrained global equity managers trailed their benchmark for the year ended March 30: Edinburgh Partners by 8.3 percentage points; AllianceBernstein by 3.8 percentage points; Lazard by 1.9 percentage points; and Invesco by 0.1 percentage points. The benchmark returned 8.5% in the period.

Mr. Keery said fund officials plan to preapprove four or five managers that may or may not receive a mandate over the next four years.

Proposals are due July 25. A decision is expected in the fourth quarter, Mr. Keery said. More information is available by sending an e-mail to investment consultant Hymans Robertson, which is assisting in the search, at