UK - The £4.3bn (US$8.45bn) Merseyside Pension Fund has placed over 10% of its assets out to tender in unconstrained UK equities strategies, including 130/30 and portable alpha.
Documents released in support of the tender stated the portable alpha strategies would be based on multi-strategy, non-directional alpha engines "demonstrating stable performance".
The decision by Merseyside pension fund to adopt unconstrained strategies marks one of the largest tenders to date in this area.
As Global Pensions previously reported (www.globalpensions.com; 10 March 2008), investment consultants Hewitt Associates claimed 80% of equity manager selections it had advised on over the past year had been for unconstrained mandates.
Hewitt Associates also revealed a third of the 150 investment mandates it had worked on over the last 12 months had been for unconstrained equity mandates.
bfinance, the consultants in charge of the tender process, were unavailable for comment at the time of going to press.
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