London Borough of Bexley Superannuation Fund issued an RFP for at least one manager to run an active bond portfolio valued at about £50 million ($75 million), according to Nigel Bate, head of technical finance at the £440 million fund.
Funding will come from terminating an active bond portfolio managed by UBS Global Asset Management. UBS is invited to rebid. The move resulted from a slight change in the plan’s investment strategy that now targets one percentage point net of fees above a custom benchmark that’s 50% U.K. government bonds and 50% mostly U.K. corporate bonds. The strategy will likely comprise mostly U.K. bonds.