UK – Following the departure of two of its senior investment staff last year, the Merseyside Council 2.5 billion pound pension fund will appoint six external managers to run 1.75 billion pounds in mandates.

The decision to outsource management of part of the fund’s assets was made following the departure of chief investment officer, Simon Edwards, and senior investment manager, Alan Borrows, last year, who left to set up independent fund manager firm, Midas Capital Partners.

They took with them four of the remaining seven members of the investment management team.

A list of preferred bidders has been drawn up, with formal appointments expected to made by 1 April 2003.

Barclays Global Investors is preferred bidder for a 300 million pound UK equity mandate.

Legal and General Investment Management is preferred bidder for a 600 million pound global equity passive mandate and a 230 million pound active global bond mandate. The other half of the 460 million pound active global bond mandate is likely to be awarded to Schroder Investment Management.

Nomura Asset Management is preferred bidder for a 130 million pound Far Eastern and emerging markets equity fund. Dresdner RCM Global Investors (recently renamed Allianz Dresdner Asset Management) is preferred bidder for a 130 million pound North American equity mandate. Wellington Management International is expected to run a 130 million pound European equity fund.

Two portfolios will continue to be run in-house – a 300 million pound active UK equity fund, and a 125 million pound pan-European fund. Small venture capital and property portfolios are also run by the council.

Bank of New York continues its role as custodian for the scheme. Mercer Investment Consulting is the fund’s adviser.

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