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PIP seeks out investment managers
08 May 2013
Pensions Infrastructure Platform is looking for investment managers for its target £2bn assets
Pensions Infrastructure Platform
Pensions Infrastructure Platform (PIP) will open invitations for expressions of interest (EOI) for investment managers on May 13 and applicants have until May 31 to develop and submit responses to the EOI.
PIP Ltd, established to facilitate development of the PIP, is seeking EOI for investment management services from existing managers, teams or individuals that may be interested in managing some, or all, of the PIP’s target £2bn ($3.1bn) assets.
Joanne Segars, speaking on behalf of the PIP, notes that the start of the investment manager selection process is an important next step in the PIP’s development.
“Founding Investors will be seeking an investment manager, or managers, with a strong track record, expertise, the ability to innovate and generate appropriate investment opportunities, and an alignment with the interests of pension funds as long-term investors,” she says.
“We continue to make excellent progress. Earlier this year we were able to announce that pension funds had made soft commitments of £1bn to the PIP. In addition to the investment manager selection exercise, work is continuing on a number of key areas to prepare the PIP for launch later this year,” adds Segars.
The models of investment management under consideration include a “buy” option, whereby PIP Limited could outsource the management of some or all of PIP’s assets to an existing manager or managers.
A “build” option where PIP Limited could develop its own in-house fund manager for all or some of the assets. And a “hybrid” option, which would combine elements of the buy and build options, e.g. outsourcing certain sectors whilst keeping the management of other sectors in-house.
The EOI process will be the first phase in the selection of a manager(s). A formal request for proposal stage will commence with a smaller number of short-listed parties following the EOI stage. Advisers PricewaterhouseCoopers and legal advisers Clyde & Co. will support PIP Ltd in the selection of the fund manager.