Strathclyde Pension Fund eyes fundamental index global equity firms
By Drew Carter | October 16, 2012 12:32 pm
Strathclyde Pension Fund, Glasgow, Scotland, is searching for at least one fundamental index global equity manager to run a total of £550 million ($867 million), according to Tenders Electronic Daily, a European procurement website.
The pension fund is increasing its passive equity investments following disappointing performance of its active managers, according to the pension fund's website. The active/passive split of equity assets was decreased to 57.5%/42.5% from 65%/35% as a result of an asset allocation review led by investment consultant Hymans Robertson in March, according to the pension fund's website.
The fundamental approach can help reduce exposure to asset valuation bubbles, provide a better measure of the long-term potential of portfolio companies and provide outperformance over the long term because of the strategy's value bias, according to Strathclyde's website.
In March, the pension fund hired active global equity managers Lazard Asset Management to run £497 million; Oldfield Partners, £313 million; and Veritas Asset Management, £301 million.
Following the asset allocation review, equities will decrease to 72.5% of total assets from 73%, real estate will increase to 12.5% from 12%, while bonds will remain at 15%.
Proposals are due Nov. 26. More information is available by sending an e-mail to StrathclydeGEPassive@hymans.co.uk.
Jacqueline Gillies, chief pensions officer for investments at the £11.2 billion pension fund, was out of the office; Alan Purdie, manager research analyst at Hymans Robertson, could not be reached for comment.
Separately, the pension fund is also searching for a global custodian. Northern Trust is the incumbent. Proposals are also due Nov. 26. More information is available by e-mailing Strathclydecustody@hymans.co.uk .