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Danish pension funds tender global equity mandates using IPE-Quest

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  • Danish pension funds tender global equity mandates using IPE-Quest

IPE - A Danish asset manager has tendered two global equity mandates on behalf of three Danish pension funds using IPE-Quest.

According to search QN1244, each mandate will be worth $125m (€100m).

The pension funds said they were looking for managed volatility products either in the form of 'minimum variance' portfolios - tracking the MSCI World Minimum Volatility index, for example - and/or 'quality' portfolios that invest in staple companies and focus on capital preservation, with a down-market capture "significantly below 100".

The mandates can be quantitatively or fundamentally driven.

The schemes said they were looking for "active, research-driven strategies", with a long-term, bottom-up investment philosophy.

The mandates' tracking error should fall below 10 per year against the MSCI World index, measured over a five-year period.

The schemes said a proven investment process and a well-diversified portfolio, securing a consistent track record - such as a high information ratio or a "batting average above 50%" - would be essential, with performance primarily coming from investment style and stock selection.

Additionally, risk management should be an "important and integrated" part of the investment process, with a large part of the risk budget coming from investment style and stock selection, and no significant bets towards country or sector allocation.

"We are searching for a manager who can demonstrate skills both in allocating the risk budget and generating performance in line with the investment process and philosophy and the core competencies of the investment team," the schemes said.

"Preferably, the portfolio will be being run by a team with a lead portfolio manager who is focused on, accountable for and has a long experience with the product and strategy. Stability is a key prerequisite, with the same type of process and preferably the same team of portfolio managers for at least three years."

The schemes said they preferred a UN PRI-complaint asset manager or one with similar ethical guidelines.

They also stipulated that their account has to be segregated, and that they would not accept carve outs or performance fees.

The closing date for applications is 27 July.                   

The IPE.com news team is unable to answer any further questions about IPE-Quest tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE-Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email jayna.vishram@ipe-quest.com.

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IPE QUEST

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IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2519

    Asset class: Fund wrapper.
    Asset region: Global.
    Size: EUR 80m.
    Closing date: 2019-03-29.

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