Avon Pension Fund, Bristol, England, is looking for a manager to set up, implement and manage a diversified hedge fund portfolio.
The £3.3 billion ($5.2 billion) pension fund is allocating about 5% of overall assets, around £165 million, to a customized portfolio of hedge funds, according to an announcement on the European procurement website Tenders Electronic Daily.
The fund is targeting a return of three-month LIBOR plus 3 percentage points per annum, or 6% per annum — whichever is higher — over rolling three-year periods. Volatility is targeted at one-third to one-half of equity markets, said the announcement.
The fund already has a 4.9% allocation to hedge funds of funds, according to its 2014 fiscal year annual report.
Proposals are due by Dec. 22. A hiring decision is expected on March 30. Further information is available on TED.
Executives at the pension fund did not respond to requests for comment by press time.