Wiltshire County Council Superannuation Fund, Trowbridge, England, hired a total of six managers to be put on two preapproved lists to manage a multiasset absolute-return portfolio and a dynamic currency hedging strategy, said Catherine Dix, investment and accounting manager for the £1.3 billion ($2.1 billion) fund.
Baring Asset Management, Newton Investment Management and Pyrford International were named in the framework agreement to run a £100 million absolute-return mandate. Funding came from terminating a multiasset mandate previously run by AIG Investments. “It was due to a change in strategy,” Ms. Dix said.
State Street Global Advisors, Pareto Partners and Berenberg Bank were included in a separate framework agreement to manage a dynamic hedging overlay linked to the fund’s £500 million overseas equity portfolio. The aim is to reduce volatility, minimize cash outflows associated with hedging activities and capture potential gains from currency movements, Ms. Dix said.
The fund had been passively hedging about 50% of the overseas equity exposure, a strategy that was implemented by Record Currency Management, Ms. Dix said.
Hymans Robertson advised, and RFPs were issued in October.