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Lothian Pension Fund establishes global emerging markets equities framework

25 February 2013

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Lothian Pension Fund has hired four global emerging markets equities managers.

The £3.7bn fund has appointed Lazard Asset Management, Martin Currie Investment Management, Mondrian Investment Partners and UBS Global Asset Management in a framework arrangement. The fund had received 14 offers following a tender alert.

Initial funding will be split between Mondrian Investment Partner and UBS Global Asset Management who will invest a total of approximately £200m in global markets equities.

The framework has replaced the previous arrangement of a single manager, Aberdeen Asset Management, and will be in place for a maximum of 10 years.

The performance target for the mandate is 3.0% per annum above the MSCI Emerging Markets Index rolling five years periods, net of fees.

In the tender alert, it was stated that the intention was for one investment manager to provide the service initially, and that during the lifetime of the framework, the services of the other managers may be utilised.

First published 25.02.2013

monique_simpson@wilmington.co.uk