WALES - The £780.3m pension fund for the Rhondda Cynon Taff County Borough Council is tendering a new specialist bond portfolio.
The mandates will be divided between segregated and corporate bonds, both UK and overseas, explained investment manager, Yvonne Keitch.
The value of the portfolio is likely to be approximately £125m and will be sourced from existing fixed-income holdings. Both Deutsche Asset Management and F&C Management - who each hold balanced mandates overseeing two-thirds and one-third of assets respectively - will have around £62.5m cut from their portfolios.
Deadline for rfps is September 9, 2002. Between 3-8 service providers will be invited to tender by September 26. Beauty parades will be held in November with the new arrangement expected to be in place by April 2003. The contract will have no fixed termination date.
Keitch added that the fund has no plans to go down the specialist route with any other asset class, meaning that Deutsche and F&C will retain their equity and cash holdings.
After April 2003, the fund will tender its custody arrangements. The incumbent custodian is State Street which has been with utilised since previous provider Lloyds TSB hived off its custody arm Rhondda Cynon is advised by Ely Fund Managers, independent adviser Peter Clements and Ives Associates.
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