LGPS Central Limited begins search for Targeted Return managers

3 March 2021

LGPS Central Limited is delighted to announce we are now looking for fund managers to run our upcoming c.£700m Targeted Return Fund.

Although subject to slight variations as the process progresses, as a general guideline, the Fund’s mandate is expected to include that the Fund will:

• be benchmarked against 3-month GBP SONIA (or equivalent)
• be expected to return a provisional active net performance of 3-4% p.a. above benchmark
• consist of between 6 and 12 different investment strategies which, in combination, will have a correlation of below 0.5 to global equity markets
• provide sources of return which are not entirely reliant on the market direction of mainstream asset classes such as equities and bonds, with an additional element of manager alpha
• be invested in underlying assets that have a high degree of liquidity
• provide a pattern of returns which is genuinely diversified from most other assets held within the Pension Funds of the potential investors
• be unconstrained geographically.

Successful candidates will need to be able to demonstrate:

• a consistent, robust, repeatable, investment process
• low cost, fully transparent, value for money
• responsible investment integration as part of the investment process
• an actively managed portfolio

Source: LGPS Central Limited