University of Bristol (England) Pension and Assurance Scheme is searching for managers to run 90% of its £113 million ($187 million) in assets, said William Liew, deputy director of finance.
The fund seeks at least one manager to handle £51 million in passive global equities, with 67% in ex-U.K. equities and 33% in U.K. equities, and £17 million each in index-linked gilts and active corporate bonds.
Also, a diversified growth manager is being sought to handle £17 million in a target-return strategy that will have a benchmark of cash rates plus 300 to 500 basis points over time. An exact benchmark has not been decided. Hedge fund strategies will not be considered, Mr. Liew said.
SEI had managed the entire fund in active equities, bonds and alternatives. Funding for the accounts comes from reducing SEI, which will retain a 10% allocation in alternatives, split about half in hedge funds and half in real estate. SEI may bid for the remaining mandates.
Trustees and investment consultant PricewaterhouseCoopers felt active management was not worth the added fees. “Historical data show you may as well follow a passive management style,” Mr. Liew said.
Proposals for all the searches are due Sept. 30, with selections expected in December. The RFPs are available at https://tender.bris.ac.uk/procontract/bristol/supplier.nsf/frm_home?openForm.
