UK - The £1.5bn Leicestershire County Council pension fund has tendered for an active currency manager to cover a currency overlay mandate worth £525m.
The tender follows a strategic review in which the fund decided to implement currency overlay for its overseas equities, which make up about 35% of the fund’s total exposure.
“It is currently anticipated that any appointment will involve the passive hedging of part of this currency exposure back to sterling, with active currency positions being taken to add value,” the fund said.
“If an active currency manager is appointed, the mandate is likely to become effective from early in the 2006 calendar year.”
The fund said it has approximately £525m invested in overseas equities. The manager would be required to actively manage the currency risk associated with the fund’s allocation to overseas equities while looking to add value.
According to the tender notice, the timely implementation of decisions taken as part of the review is of “vital importance” and any undue delay could be costly.
There is no fixed duration for the contract. Deadline for tender is June 30.
No one from the fund was contactable at the time of going to press.
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