The Avon County Pension Fund, Bath, England, is breaking its fund into three equal chunks, sources said.
Pension officials were not available for comment, but informed sources said the £1.2 billion ($2.05 billion) fund is abandoning its existing core-satellite structure. Under the new approach, three managers will be hired to run £400 million each. One manager will provide passive stock selection and passive asset allocation in line with the U.K. average asset mix; a second will offer passive stock selection with an active tactical asset allocation overlay; and a third will provide active stock selection and active asset allocation. The date for applications has passed.
Current managers include G.M.O. Woolley for U.K. equities; Schroder for emerging markets and a tactical asset allocation overlay; G.T. Capital for emerging markets; and Jardine Fleming for Japanese equities. The fund also internally manages passive U.K. stock and bond portfolios. Frank Russell is the consultant.