Border to Coast Pensions Partnership, Leeds, England, is searching for up to three managers to run between £2 billion ($2.5 billion) and £3 billion sterling investment-grade bond allocation, according to its website.
The £46 billion pool of U.K. local authority pension funds will employ at least two but no more than three strategies benchmarked against the iBoxx GBP Non-Gilts index.
Managers should demonstrate low turnover, long-term approaches and conservative risk management, Boarder to Coast said.
The selected candidates will be active or buy-and-maintain managers focused on value-added strategies. Managers must have an environmental, social and governance focus demonstrated through active engagement, quarterly reporting on responsible investment activities that is in line with the U.N.'s Principles for Responsible Investment code or an international equivalent.
To be considered, managers must have a performance target of the index plus 60 basis points net and at least a five-year track record.
The pool will not accept performance-related fees or fees above 25 basis points overall.
Mercer is assisting with the search.
The RFP is available by emailing [email protected]. Proposals are due by 4 p.m. British Summer Time on July 22.
Boarder to Coast oversees the investment of assets for the Bedfordshire Pension Fund, Bedford; Cumbria Local Government Pension Scheme, Carlisle; Durham County Council Pension Fund; East Riding Pension Fund, Goole; Lincolnshire Pension Fund, Lincoln; North Yorkshire Pension Fund, Northallerton; Northumberland County Council Pension Fund, Morpeth; South Yorkshire Pension Fund, Barnsley; Surrey Pension Fund, Kingston upon Thames; Teesside Pension Fund, Middlesbrough; Tyne and Wear Pension Fund, Sunderland; and Warwickshire County Council Pension Fund, Warwick.