London Borough of Bromley Pension Fund is searching for up to three managers to run long-only active global equity strategies totaling about £370 million ($560 million), said Martin Reeves, group accountant.
The £530 million pension fund is largely managed by two balanced fund managers, Baillie Gifford & Co. and Fidelity International. Funding for the global equities mandates will come from reducing the existing balanced mandates. Both managers are invited to rebid, Mr. Reeves said.
The move followed an asset allocation shift to reduce overall equities exposure to 70% from 80% of total assets. Furthermore, the portfolio shifted to a global allocation from a regional approach. Bonds will remain the same at 20%, while a new 10% allocation to diversified growth funds was added, Mr. Reeves said. In December, the fund hired Baillie Gifford and Standard Life Investments to equally split the diversified growth portfolio.
Proposals for the global equity mandates are due March 22. Managers are expected to be appointed in the third quarter. Further information can be obtained from consultant AllenbridgeEpic Investment Advisers by e-mail at [email protected].