Avon Pension Fund, Keynsham, England, is searching for an active currency hedging overlay manager to run a nominal value of £500 million ($779 million), said Matt Betts, assistant investment manager at the £2.5 billion fund.
Avon will consider only quantitative non-discretionary approaches, and active hedges will be made only on euro-, yen- and U.S. dollar-denominated equity investments. This is the fund’s first active currency overlay manager, Mr. Betts said.
The decision to add active currency hedging was a strategic move made at the fund’s May investment committee meeting and was not driven by recent volatility in the euro, Mr. Betts said. JLT Benefit Solutions, the fund’s investment consultant, is assisting in the search.
Proposals are due Jan. 4, with a selection expected by June. Interested managers can view the RFP by registering at http://www.supplyingthesouthwest.org.uk.