REAL ESTATE – Welsh local authority Powys County Council is tendering for a multi-manager to handle £13m (€19m) of European (ex. UK) unlisted real estate for its pension fund.

An investment panel of five local councillors will appoint the successful fund manager, based on the "most economically advantageous" tender, before the summer.

The £260m Welsh pension fund identified no further selection criteria. However, information sent to potential bidders stressed fund managers’ "clear performance targets" and "maximum accountability".

The real estate investment will be benchmarked 5% above the UK Retail Price Index (RPI).

Following previous poor investment returns, the fund has diversified over the past few years, maintaining a risk-averse approach while exploring other asset classes. T

The tender for European property manager comes in the wake of recent review initiated in response to improvements in returns on equity investments.

Real estate makes up 5% of the fund.