LGPS Central Ltd., Wolverhampton, England, is searching for money managers to run its upcoming targeted return fund.
The fund will have about £700 million ($980 million) in assets, a posting on the pension pool's website said.
LGPS Central runs the pooled assets of eight local authority pension funds with a combined £45 billion in assets.
The pool expects the fund to be made up of six to 12 different investment strategies which, in aggregate, have a correlation of below 0.5 to global equity markets. It wants the fund to invest in underlying assets that have a high degree of liquidity and wants it to be unconstrained in terms of geography.
LGPS Central will choose the managers and strategies and decide their weightings. Managers will run the assets in line with parameters agreed with the pool, a spokesman said.
Successful managers will have to show a consistent, robust, repeatable investment process; be low cost, fully transparent and demonstrate value for money; integrate responsible investment; and actively manage the allocation.
The procurement process will happen in three stages and be managed electronically by LGPS Central's targeted return team. Managers must register with the pool's procurement website to access information and apply.
Pool executives want to launch the sub-fund toward the end of the year, the spokesman said. The selection process is expected to take around six months.
Proposals are due by March 29.
