Brunel Pension Partnership, Bristol, England, is set to launch a search for managers to run £2 billion ($2.6 billion) multiasset portfolios known as diversified growth funds, the £28 billion pool of U.K. 10 local authority pension funds said.
In efforts to diversify its risk away from equity investments, Brunel will consider established diversified growth funds or separate accounts from a range of liquid alternatives, including risk premium funds, diversified factor funds, option-based products or insurance-based funds.
"We are looking for managers able to add value over a simple mix of bond and equity through genuine diversification or alternative sources of return. There will be some basic expectations of liquidity — we do not need daily liquidity but would need to feel able to move assets in reasonable scale over a few weeks," Mark Mansley, CIO at Brunel Pension Partnership, said in a news release.
Submmissions are accepted via email by April 26. Selected managers will be invited to formally tender in early summer 2019.
Managers should provide key investment metrics including total return and risk, drawdown experience, bond and equity correlation/beta, downside capture and indicative costs.