UK - Clwyd Pension Fund has appointed commodities and portable alpha managers following its pension fund restructure.
The £850m Clwyd Pension Fund has now completed the third stage of its Fund Structure Review exercise.
Gottex has been awarded a £101.7m (12% of portfolio) mandate for UK equity portable alpha, replacing BGI, and Wellington has been awarded a new commodities strategy mandate worth £16.9m (2% of portfolio).
In the last month Clwyd has also appointed a UK equity mandate (15% of portfolio) to Standard Life, which replaces Fidelity.
Stone Harbor won the unconstrained fixed income mandate (13% of portfolio) from BGI & Barings.
Clwyd dedicated 5% of its portfolio to a new strategy for global equity that was awarded to Investec and BGI were re-appointed to manage its global tactical asset allocation (5% of portfolio).
A spokesperson for the fund said it “carries out a review every three years with the aim of improving the performance on those areas where returns have been weaker and, more generally, to consider the risk/return profile of the fund in the context of current investment and market trends”.
Clwyd Pension Fund said it aims to have the mandates in place by 1 April 2007 and Blackrock has been appointed as transition manager.
Another local government pension fund has also announced a multi-million pound mandate. Falkirk Council Pension Fund has awarded a £120m diversified fixed income mandate to Edinburgh-based investment manager Baillie Gifford & Co.
The money for the mandate has come from the consolidation of two previous contracts: an active bond mandate that was held by Schroders and a passive bond mandate that was held by BGI.
Speaking when the contract was tendered in September, fund treasury manager Alastair Redpath said there was "nothing sinister" in the reshuffle of its bond portfolios.
The move was the last step in a process of diversification that began two or three years ago and which Redpath described as following a "chosen specialist route".
He stated that the fund had sought to award mandates through the careful selection of different specialist managers, when it "became clear that there are not many multi-asset managers around that can deliver across all asset classes at any one time".
The asset allocation of the Falkirk Council Pension Fund now stands as follows: 35% UK equities; 35% overseas equities; 5% private equity; 12% UK bonds; 3% index-linked and 10% property.
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