The £2.3bn South Tyneside Pension Fund has gone out to tender for a private equity mandate worth £100m and appointed Prudential to run a new AVC scheme.
As part of a major overhaul of its investment strategy, the Tyneside scheme has decided to allocate £100m, approximately 4.5 per cent of the fund, to private equity investment as it transfers all its portfolios to a specialist approach.
Stephen Moore, head of pensions at the Tyne & Wear fund, said that the fund already had some investment in venture capital but wanted to increase the scheme's exposure.
He said: “I thought it was an appropriate asset class to move into after we had conducted an asset liability study.”
Schroders has been reappointed as fund manager of a £170m Far Eastern equities mandate and RREEF has kept is position as manager of a property brief also worth £170m.
The Tyneside scheme is also out to tender for a £550m passive US equities and UK government fixed-interest and index linked stocks mandate and a £400m fixed interest brief.
The fund is also searching for managers for an active UK equities mandate, a global equities mandate and a pan-European equities mandate all worth £300m. The scheme has also tendered for a new £60m emerging markets brief.
In a separate move, the Tyne & Wear fund has appointed Prudential to join Equitable Life as an AVC provider. Moore said that members were still free to carry on paying into the Equitable plan.
Watson Wyatt advised the fund through the investment review and the appointment of Prudential.