UK - The £1.2bn Aberdeen City Council pension fund is tendering for a series of specialist investment managers for mandates totalling £610m as part of a move from away from a balanced structure.
The fund is seeking five separate managers to cover a property, global equity and bond portfolio and two private equity mandates.
Aberdeen City Council spokesperson Joanne Hope said the new mandates were the result of a restructure following an investment review.
“It was a restructuring of the pension fund following an asset liability study that was carried out earlier this year,” she said.
“We’ve done away with balanced mandates and we’re moving to specialist mandates.”
According to the tender notice, the size of the mandates is likely to range from £24m to £240m.
The £240m global equity mandate will be weighted 50% UK and 50% overseas, the £120m property portfolio will be initially pooled, moving to direct holdings and the £190m bond brief will be split one third gilts and two third overseas bonds.
The council said one £36m private equity mandate will take on a fund of funds structure and the other £24m private equity brief will be a segregated direct holding.
Mercer Investment Consulting is advising the fund on the selection process and deadline for tender is January 14, 2005.
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