London Borough of Bexley Pension Fund, Bexleyheath, England, is seeking two money managers for the £360 million ($636 million) plan's first allocations to hedge funds and private equity. Each manager would run £10 million.
Mike Ellsmore, assistant director of finance, said an RFP was issued Friday and will close Feb. 27. Additional information on the RFP is available via e-mail at [email protected]
The search follows an asset-liability study completed last summer by Mercer Investment Consulting. Adding hedge funds and private equity will help diversify the fund and cover a deficit gap, Mr. Ellsmore said. The plan is about 83% funded.
In addition to a 5% allocation to private equity and hedge funds, the plan decreased bonds to 30% from 40% and increased equities to 65% from 60%.
Two balanced managers run the equity and bond portions of the portfolio: Newton Investment Management manages about £150 million; UBS Global Asset Management manages about £190 million in assets.