Flintshire County Council Clwyd Pension Fund, Mold, Wales, issued three RFPs for managers to run a total of £269 million ($414 million) in passive developed market equities, active unconstrained global equities and tactical asset allocation strategies, according to fund spokesman Delwyn Evans.
The changes resulted from the £900 million fund’s new asset allocation plan, approved on Aug. 12, which includes 19%, or about £170 million, in passive U.K., U.S, continental Europe and Japanese equities. The active unconstrained global equities strategy accounts for 5% of assets, or about £45 million, and the TAA portfolio totals about £54 million, or 6% of total assets.
Fund officials wanted to add exposure to developing market equities, move from active management in developed markets and increase allocation to fixed income and inflation-hedging assets such as commodities, real estate and infrastructure, according to Mr. Evans.
Funding will mostly come from terminating active equity managers Standard Life Investments, from a U.K. portfolio; Gottex Asset Management, a U.K. portable-alpha mandate; T. Rowe Price, U.S. equities; and TT International and BlackRock, both European equities, Mr. Evans said. Fidelity International also was terminated as an active Japanese equities manager, Mr. Evans said.
Goldman Sachs Asset Management was terminated from a currency mandate, which is being folded into the TAA portfolio rather than as a standalone strategy, Mr. Evans said.
All managers are invited to rebid. Information about the specific allocation shifts and the sizes of the terminated managers' portfolios were not available by press time.
Proposals are due Oct. 11. Fund officials expect to appoint the new managers by April 1, 2011.
Further information on the two equity mandates can be obtained from consultant bfinance via e-mail at [email protected] Further information regarding the tactical asset allocation strategy can be obtained from consultant JLT Benefit Solutions via e-mail at [email protected]