UK - The £2.8bn Merseyside Pension Fund is set to tender a passive portfolio worth around £840m following a best value review.
The local authority scheme decided to diversify its asset management structure by shifting management of the passive portfolio from the in-house investment team to an external manager.
Senior investment officer Alan Borrows said the transfer of risk from the in-house team to an external manager as well as cost considerations also played a major role in the decision to outsource the brief.
He added that the fund is expected to have a beauty parade towards the end of January and hopes to appoint a new investment manager by the end March, 2002.
Apart from the in-house team, Merseyside’s remaining assets are split between Tilney Investment Management, Phillips & Drew, LionTrust Baring Asset Management and Friends Ivory & Sime.
It is not clear at this stage how the current manager roster will be affected by the move.
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