Leicestershire County Council Pension Fund, Leicester, England, is conducting shortlist searches for an active global equity dividend-focused manager to run up to £230 million ($367 million) and an alternative indexation manager to run a mandate of undetermined size, said Colin Pratt, investments manager at the £2.3 billion fund.
Both searches are led by investment consultant Hymans Robertson. Interested managers are encouraged to contact the consultant for consideration.
The alternative indexation, or smart beta, mandate will take up to 50% of about £900 million in global equity managed passively, according to a report on the pension fund's website. However, Mr. Pratt said a proportion as high as 50% would be “extreme.”
Funding for both strategies comes from reducing Legal & General Investment Management's £1.1 billion mandate in a number of passive equity strategies.
Also, the fund hired J.P. Morgan Asset Management to run £80 million in active global credit. Funding comes from terminating UBS Global Asset Management, which ran the money in active U.K. credit. UBS was terminated because the fund changed the scope of the mandate to global from U.K.
An RFP was issued in May. Hymans Robertson assisted.