Cornwall County Council Pension Fund, Truro, England, issued RFPs for a global custodian and managers for a £134 million ($203 million) specialist equity portfolio and a £61 million specialist bond portfolio, said Vic Lush, investment officer for the £616 million plan. Proposals are due by October, and a decision is expected in March.
The new managers will replace Merrill Lynch Investment Managers, which ran a £195 million balanced portfolio. Trustees were disappointed by Merrill Lynchs performance, but the firm may rebid, said Mr. Lush. Merrill Lynch would not comment on client matters, said spokesman Jonathan Ruck Keene.
Also, plan trustees recently adopted a new asset allocation strategy increasing non-domestic equities and agreed to use plan-specific benchmarks, replacing the CAPS Median for U.K. pension plans. Newton Fund Managers will continue to manage a £198 million active portfolio and Barclays Global Investors will retain its £191 million passive mandate, but the benchmarks for both will change over the next few months, said Mr. Lush.
The current custodians are Bank of New York and Chase Manhattan.
Hymans Robertson advised.