WALES - The £872.6m pension fund for the Rhondda Cynon Taff County Borough Council is tendering for a specialist bond manager to run £120-130m and will tender for a custodian in October.
Currently, Deutsche Asset Management and F&C Management both hold balanced mandates, overseeing two-thirds and one-third of the assets respectively. Monies in those proportions will be extracted equally from their portfolios in whatever they hold in fixed interest bonds.
The Clydach Vale-based fund’s panel made the decision on March 7. Following a meeting with the procurement officer in a few week’s time the tender will be put out in May.
Once the bond manager is in place by October the scheme will advertise for a custodian. The fund’s current custodian is State Street which has been with it since previous provider Lloyds TSB hived off its custody arm.
All contracts are for a rolling three-year duration.
The fund is advised by Ely Fund Managers, independent adviser Peter Clements and Ives Associates.
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