IRELAND - Ireland's e14.5bn National Pension Reserve Fund (NPRF) has tendered for an EAFE small cap equity investment manager in line with its commitment earlier this year to up its allocation to small cap.
The mandate will be valued at about e70m, with an additional cash flow of between e20m and e30m expected over the course of the next three years.
The NPRF’s preferred benchmark is the FTSE Developed Small Cap ex -North America.
A spokesman for the fund said the new small cap mandate was in addition to those already managed by Arcadian Asset Management and UBS, who look after the EAFE and US small cap respectively.
He said “capacity constraints” faced by the existing managers was one of the reasons why the fund had tendered for another manager for the latest mandate.
“In accordance with EU regulations, we expect to appoint a manager for the mandate early next year,” he said.
In 2004 the NPRF made its initial move into small cap, allocating 1% to US small cap and 1% to EAFE small cap. In early in 2005, the fund increased its small cap allocation from 2 to 4%.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.