The £1.4 billion Cornwall Pension Fund has split a £60 million active frontier market equities mandate between Advance Emerging Capital and HSBC Global Asset Management.
The allocation to global frontier markets by Cornwall is a result of a restructuring of the equity portfolio, which is 25% of the fund’s assets. The equity allocation split is now 60% global equities, 20% active emerging market equities and 20% active frontier market equities. The fund was advised by JLT Investment Consulting’s Julian Brown on strategic allocation, and bfinance assisted in the manager search. Cornwall Pension Fund pension investment manager, Matthew Trebilcock, said: “Like all pension funds, we are focused on where we are likely to see investment growth in the future. We are confident that we have secured two partners with deep insight into the companies that will be at the forefront of the growth in the next wave of developing economies.”
HSBC Global Asset Management UK CEO, Andy Clark, commented: “We are very pleased to have been chosen by the pensions committee to manage frontier market equities for the Cornwall pension fund and its members, and look forward to a long and successful relationship with the team at Cornwall.”