Local authority pool launches £1.2bn global equity search with a tilt to quality
The pool is seeking two to three active managers, with a shortlist expected before year end and a clear preference for concentrated, quality-biased portfolios.
Marcus Hale, Senior Reporter, Mandates
5 min read
One of the largest UK local government pension pools has opened a search for up to three active global equity managers, with an initial allocation of around £1.2bn split across the successful firms.
Documents seen by Allo indicate the pool is targeting concentrated portfolios of 30 to 50 holdings, with an explicit preference for quality and profitability factors over pure growth exposure.
What the pool is looking for
- Minimum strategy AUM of £2bn with a five-year track record
- Tracking error between 3% and 6% versus MSCI ACWI
- Demonstrable stewardship and engagement reporting
- Fee proposals benchmarked against existing pool rates
“We want managers who can articulate why a business will still be compounding in ten years, not why it will beat consensus next quarter.”
The search follows a wider review of the pool’s equity structure, which concluded that passive exposure had become too dominant following a series of rebalancing decisions in 2024 and 2025.
Consultant support is being provided on the manager selection process. Shortlisted managers are expected to present in December, with funding scheduled for the first quarter of 2027.
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