Institutional Investors

Strathclyde issues absolute return mandate for over $1bn

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The Strathclyde pension fund - which manages the pension fund assets of Glasgow City Council in Scotland - plans to issue a mandate for up to $1.14 billion. The pension fund's new mandate will be run as an absolute return bond mandate.

The new investment will be benchmarked against sterling three month Libor. A range of performance objectives will be considered ranging between 1% and 3% over the cash benchmark.

The $12.1 billion public pension plan returned -8.4% for the quarter to 30 September 2008, with many of its managers underperforming in volatile markets, although its private equity holdings including