Essex County Council has instructed Norwich Union Investment Management to increase the property allocation of its segregated property mandate with a £20m investment. The influx of cash over the next few months will raise the property allocation to 7.5% of the total portfolio.
A segregated property mandate is a stand-alone portfolio with the money in it being managed specifically to the needs of that client, and therefore, will not be lumped in with other Norwich Union portfolios.
As part of the strategy to increase the property allocation the fund has invested over £50m in ‘indirect property portfolio’ – funds that hold property shares but do not directly invest in bricks and mortar – this year in a bid to expand its exposure in this type of asset.
Essex County Council Pension Fund property mandate is valued at £130m. NUIM will also be given the freedom to manage the portfolio as they see fit. The NUIM’s property team manages £3.9bn of property assets including some on behalf of Norfolk, Lincolnshire and West Yorkshire councils.
Chris Laxton, property investment director at NUIM, said: “We are very enthusiastic about this opportunity to work with the Essex County Council Pension Fund team. With NUIM’s unique internal property research capabilities, our strength in actively managing direct and indirect property investment and our performance record with other pension fund clients, we are very confident that we can meet the objectives that we have been sent.”
EGi News 10/12/1999
