UK pension fund eyes agriculture, timber in long-term fiduciary mandate

The £2.4bn (€2.9bn) Hertfordshire County Council Pension Fund is looking at potentially investing in agriculture and timberland via a long-term fiduciary mandate worth up to £300m.
“Hertfordshire County Council Pension Fund is seeking to appoint a provider to manage a diversified portfolio of alternative assets on a fiduciary basis,” the fund says in a tender document.

The portfolio would be expected to include a number of asset classes, including timberland and agriculture. Other asset classes could include: currency, commodities, emerging market debt, global tactical asset allocation (GTAA), hedge funds, high yield bonds, infrastructure, insurance-linked securities, private equity and real estate.The arrangement would be for an initial five years with an option to extend every year for up to a further five years.

The preferred approach will be expected to beat three-month LIBOR by 3-5%. The mandate is anticipated to be worth between £200m-£300m.

“Investment managers, fiduciary managers and consultants providing implemented solutions are encouraged to apply,” the tender adds.

The estimated value of the contract is between £3.75m and £12.5m.

“The most economically advantageous tender” will be chosen. The deadline for the receipt of tenders is April 30. Link