UK - The £1.2bn Hertfordshire County Council Superannuation Fund is to tender for a £60m private equity mandate.
The investments will be built up over five years, taking private equity up to 5% of all funds under management. The fund already has a small private equity mandate with Permira – formerly known as Schroder Ventures – but Permira has closed its funds to new capital.
Hertfordshire finance manager Jill Digby said funding for the mandate will be sourced from cash inflows. She revealed that the scheme is removing about £36m in property unit trusts from its balanced managers, which include Merrill Lynch Investment Management and Schroder Investment Management. The money will be re-allocated to direct property investments and invested in-house. This move was not advised by the fund’s investment consultants, Mercer.
The scheme is also to conduct a review of its arrangements following Mercer’s appointment last month. Previously Hymans Robertson, Hertfordshire’s actuary, provided investment consulting on an ad hoc basis.
The scheme brought on board a full-time consultant to comply with the changes in the Myners report. Other changes include the adoption of a customised benchmark for its balanced managers and for the fund as a whole. Previously, only its specialist managers had customised benchmarks.
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