WALES - The £872.6m pension fund for the Rhondda Cynon Taff County Borough Council may seek investment managers and a custodian in March following the outcome of a periodic review.
The Clydach Vale-based fund, which reviews its investment arrangements once every three years, may tender for an unspecified number of mandates for both balanced and specialist bond management.
The decision to tender rests on the outcome of an investment committee meeting to take place at the beginning of March, said investment manager, Yvonne Keitch. Keitch also added that the fund would not look to go down the corporate bond route should they seek a specialist manager, and monies for the mandate would be shifted from existing balanced contracts.
Currently, Deutsche Asset Management and F&C Management both hold balanced mandates, overseeing two-thirds, and one-third of the assets respectively.
The fund’s current custodian is State Street which has been with the fund since previous provider Lloyds TSB hived off its custody arm.
All contracts are for a rolling three-year duration.
The fund currently invests in UK equities (53.9%); overseas equities (22.9%); UK fixed interest (5.1%); index linked gilts (0.4%); UK property (1.7%); cash and deposits (5.8%); UK and international bonds (7.3%), and other (2.9%).
The fund is advised by Ely Fund Managers; independent adviser, Peter Clements, and Ives Associates.
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