South Tyneside Metropolitan District Council's £2.2bn Tyne & Wear Pension fund has put a £100m private equity mandate out to tender, as part of an overhaul of its investment arrangements.
According to Stephen Moore, head of pensions at Tyne & Wear, the fund has also retained two of its current fund managers, Schroder Investment Management and RREEF. Schroder will continue to run a £170m Far Eastern equities brief, whilst RREEF still oversees a £170m property mandate.
Presently, the fund is divided equally into balanced and specialist mandates, but following a review, Moore said that a decision was made to shift the entire fund to a specialist management style. As a result, several specialist mandates were put out to tender. At the moment, balanced mandates are managed by Phillips & Drew (£700m), and Fidelity (£300m).
Remaining mandates out to tender include an active UK equities mandate (£300m); a pan-European equities brief (£300m); a global equities portfolio (£300m); an emerging markets brief (£60m); and a global bonds portfolio (£400m).
Also up for grabs is a £550m passive mandate. According to Moore the mandate, which is likely to go to a single manager, will comprise US and UK equities, UK government fixed interest, and index linked stocks.
Decisions on managers for all mandates are expected in October.
By Geoffrey Ho
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