Threadneedle lands €175m equity income mandate

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Carmarthenshire County Council has awarded a £150 million (€177 million) equity investment mandate to Threadneedle, the company has announced.

The award follows a public tender by the Welsh local authority, which is the administering authority for the £1.6 billion (€1.9 billion) Dyfed Pension Fund.

It reflects the council’s decision to move away from a regionally focused portfolio towards a more global approach.

This will see its existing investments in UK and European equity reallocated to the Threadneedle Global Equity Income fund, which is run by Citywire + rated manager Stephen Thornber (pictured).

Threadneedle said the award marked the second success in the UK local authority pensions sector over the past few months. It was previously selected by the London Borough of Hounslow to manage its UK property mandate.

Commenting on the award, Anthony Parnell, treasury and pension investments manager at Carmarthenshire County Council, said: ‘Our fund works with only a small number of investment managers, and this mandate is part of our strategy to take a more global approach to equity investing in order to deliver the best returns for our members.’

The Threadneedle Global Equity Income fund has returned 43.9% over the three years to the end of November 2013. This compares to a rise of 44.13% by its Citywire benchmark, the FTSE World TR GBP, over the same period.