The Lothian and Enfield local government pension funds are both opting to run some of their assets without benchmarks. The two funds are separately looking to run specific funds in an ‘unconstrained manner’, which will mean managers can run the assets without having to meet a financial target. The Lothian fund is one of the biggest in the UK and includes Edinburgh City Council and East Lothian, West Lothian and Mid Lothian councils. It has a membership of 125 public bodies, representing almost 62,000 workers from across Scotland, and is worth £2.6bn. A fund of £260m has been put up for tender in specialist global equities. A maximum six-year contract is up for grabs, and the deadline for receipt of tenders is 19 July. Enfield Pension Fund is looking to appoint one or more unrestrained global equity managers to look after 25% of its total fund, which is worth £125m. The news follows pension funds for both Westminster City Council and Kent CC opting to allow managers to run unconstrained portfolios.
