Merseyside Pension Fund, Liverpool, England, plans to search for passive equity and fixed-income managers to run a combined £1.3 billion ($2.1 billion), said Paddy Dowdall, investment manager at the £4.8 billion fund.
An RFP is expected to be issued within the next week, Mr. Dowdall said.
Legal & General Investment Management ran £476 million in U.K. index-linked government bonds and £446 million in passive U.K. equities as of Nov. 30. UBS Global Asset Management ran £380 million in passive U.S. equities at that time. Both incumbents can rebid.
The search is being performed because both managers have been in place since 2003, and the fund is required by law to review manager contracts, Mr. Dowdall said.
Aon Hewitt will assist in the search.
Separately, the fund rehired CB Richard Ellis as property manager to oversee its £300 million direct U.K. real estate portfolio, Mr. Dowdall confirmed. CBRE has managed the portfolio since 1999.