Strathclyde Pension Fund has hired three managers as part of a framework agreement to look after the scheme's passive fundamental equity portfolio.

After receiving 17 offers, Glasgow City Council, on behalf of the pension fund, appointed HSBC Global Asset Management, Legal & General Investment Management and State Street Global Advisors.

In a tender, the council said it was seeking a manager to manage a mandate tracking non market-cap weighted, rules-based global equity index covering as broad a spread of size, industry and geography as possible.

It added that constituent weightings in the tracked index should be, wholly or substantially, determined by fundamental accounting values and that the mandate size has provisionally been set up to 5% of the value of the fund, which is around £550m.

The framework will also be made available to other Scottish local government pension scheme administering authorities.

First published 16.07.2013

monique_simpson@wilmington.co.uk