UK - Deutsche Asset Management is set to lose a balanced mandate worth £160m as the London Borough of Tower Hamlets pension fund seeks two new specialist managers.
The pension scheme is tendering for managers of a UK equity mandate and a bond mandate worth approximately £160m. The UK equity mandate is for approximately £75m, managed actively, said an official at the Tower Hamlets pension fund. The bond mandate is for approximately £85m. The equity mandate will represent about 15% of the fund’s £400m portfolio, while the bond mandate will represent about 18% of the portfolio.
The money for the mandates will be seeded from a balanced fund currently managed by Deutsche Asset Managers, the official said. The pension scheme had undertaken a strategic review and decided to move from a balanced to a more specialist structure, spurring the tender. Deutsche has been invited to retender for the mandates, he added.
The balance of the pension fund is managed by Schroders, who oversee a balanced mandate and the fund’s property investments, and GMO, who has a specialist equity mandate.
The Tower Hamlets pension scheme’s asset allocation is 35% UK equities, 35% oversees equities, 10% indexed linked equities, 2.5% fixed interest, 5.5% stirling non-gilts and 12% property, the official said.
Proposals must be tendered by 17 May. Hymans Robertson is assisting the scheme in the manager search.
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