Prudential Portfolio Managers will present the winner - the person with the most money at the end of the year - with a trophy and donate £2,000 to a charity of the winner's choice.
The competition is open to any local authority treasurer or finance officer involved in the investment of pension funds. A draw in early October will select the 12 lucky players.
Public Treasurer will publish regular updates on their progress, and Prudential Portfolio Managers will handle the administration.
-- None of the competitors in the Public Treasurer/Prudential Investment Challenge saw the value of their portfolios increase over the summer months when stock markets and indices were relatively flat. The rankings of the top five remained the same, with Hackney LBC's Paul Audu retaining top place with a £13m lead over his rivals on a highly specialised portfolio.
Mr Audu has been appointed local authority representative on the National Association of Pension Funds investment performance code monitoring group.