The Avon Pension Fund, Bristol, England, issued an RFP for at least one manager to run £100 million ($187 million) in active unconstrained U.K. equities, said Liz Feinstein, assistant investment officer. The new mandate is part of the £2 billion fund's strategy overhaul, Ms. Feinstein said. The RFP is available from consultant bfinance at www.bfinance.co.uk. Proposals are due Nov. 30, and Avon officials plan to appoint a manager by April.
Terminated were Capital International, which managed a £640 million active multiasset strategy, and Wellington Management, which ran a £220 million active international equity portfolio. "It was due to performance," she said, "but it was also because the existing mandates didn't fit into the new structure." Capital spokesman Simon Levell declined to comment; Wellington spokeswoman Lisa Finkel nor could not be reached for comment by press time.
Fund officials will also increase an existing passive multiasset strategy run by Barclays Global Investors to £700 million from £500 million.
The plan will also make its first foray into hedge funds, allocating about 10% of total assets to the asset style. It will put another 10% of assets into enhanced index strategies; Ms. Feinstein declined to provide details. Fund officials will also add a £60 million emerging markets mandate, as well as shifting an undisclosed amount into active global real estate. There is no timeframe for making these changes, she said.