UK - The City and County of Swansea pension fund has issued tenders worth over £382m to manage the investment of six specialist active portfolios.
The tenders represent around 45% of the Council's £900m pension fund and will be divided between global ex-UK equities; diversified fixed income; fund of hedge funds; global and / or European property fund of funds; private equity fund of funds; and global tactical asset allocation.
Jeff Dong, chief treasury officer at the pension fund, said the decsion to review the portfolio was taken in the first quarter of 2007, before the current credit squeeze.
He said: "Had we moved to this structure, we could have not been so adversely affected. It may have mitigated the effects of the squeeze."
He added that as a long-term investor the fund was robust enough to weather short term market fluctuations.
The development comes amid a concerted effort to increase the level of diversification across the portfolio and better manage market volatility and risk budgets.
This diversification will see almost half the fund move from a balanced, unexposed investment structure to a specialist structure with a high level of exposure. Meanwhile, the fund's existing UK equities and passive investment managers will retain their portfolios.
The tender process will be overseen by b-finance and the closing date for tenders is 26 October 2007.
In a separate development, the pension fund has also issued a tender for a transition manager to move approximately £255m of assets.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.
In this week's Pensions Buzz, we want to know whether bosses should have to pay into the same staff DB scheme as their workers rather than their own executive pension fund.