Greenwich’s local authority fund has awarded £200m (€230m) worth of mandates, as it completes the implementation of a new asset allocation.
The local government pension scheme for the London borough of Greenwich has selected a manager for a £100m multi-asset absolute return mandate, and a second £100m emerging market equity mandate.
The 10-year multi-asset mandate has been awarded to Invesco Perpetual, with the manager beating nine other applicants to the award. Greenwich said it was looking for a manager to outperform the three-month sterling LIBOR rate by a significant margin, defined as 3-5%.
Fidelity beat a similar number of managers to the 10-year contract for the global emerging market equity mandate. The manager will be expected to outperform the MSCI EM index by 2-4%, placing the funds invested into an existing pooled vehicle.
Previously drawing its equity exposure from a UK equity and a general overseas exposure accounting for 45% of assets, the local government pension fund instead agreed to allocate 15% to UK equities and a further 35% to overseas equities.
| Greenwich strategic allocation | |
| Asset Class | Target |
| UK equities 5% cap weighted | 15% |
| Overseas Equities | 35% |
| Global equity passive | 15% |
| Smart beta | 10% |
| Emerging markets active | 10% |
| Property | 10% |
| Bonds | 20% |
| Multi-asset credit | 10% |
| UK Aggregate Bond Fund | 10% |
| Multi-asset strategy | 10% |
| Diversified alternatives | 10% |
The overseas exposure includes the 10% target allocation to emerging market equity but also a 15% passively managed global equity mandate and a 10% exposure to smart beta strategies.
The two awards comes after BlackRock was hired for a £400m passive global equity mandate, and Partners Group put in charge of a £100m diversified alternatives mandate – part of £700m worth of new mandates handed out by Greenwich.
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