UK - The £800m Cambridgeshire County Council has completed its selection process for private equity managers and a global custodian.
The Council has appointed Adams Street Partners and HarbourVest Partners, each with a mandate of £25m, to the private equity portion.
Adams Street will invest in a global private equity fund, and HarbourVest's investments will be divided equally between an international fund and a US fund.
In addition the Council has recently committed £2m to The First Cambridge Gateway Fund for investment in the equity of early stage high technology companies, principally in the Eastern Region.
County Council director of resources Mike Parsons said: These appointments are the first significant commitment to private equity for the Cambridgeshire pension fund, and over time will build up to a weighting of approximately 4% of the whole fund.
This type of investment has generated very impressive investment returns over a long period, and I believe this additional diversification of the fund's assets will be beneficial.
The award of a global custody mandate has been made to Deutsche Bank who are currently custodians of part of the fund.
Parsons said: I believe there are many advantages to be gained from the appointment of a global custodian, and I look forward to the improvements in accounting and reporting which this appointment will provide.
Hymans Robertson advised on the moves.
Last month JP Morgan asked not be reconsidered for the Cambridgeshire custodian mandate following a tender for a sole provider at the local authority scheme because it was too “small”, according to a source at the scheme.
By Luke Clancy
This week's edition of Professional Pensions is out now
Collective defined contribution (CDC) schemes will need clear and transparent governance frameworks, as well as effective communication strategies, to be a success, the Work and Pensions Committee (WPC) has been told.
The aviation sector's constant evaluation of mistakes to improve safety should be applied to defined benefit schemes, as too many are making the same mistakes again and again, latest research shows.
A month of strikes are due to hit 64 universities from tomorrow over major reforms to the Universities Superannuation Scheme (USS).