NETHERLANDS – Dutch investment consultant Fortunis has announced a new RFP for an e300m Eurozone debt mandate on behalf of a Dutch pension fund client, with the search being transmitted through the IPE-Quest electronic manager selection system.
Fortunis says the objective of the mandate is to at least equal the Salomon Smith Barney Euro Government Bond Index after all costs and expenses, including management fees.
The maximum tracking error for the mandate is 40 basis points (bps) per annum.
The pension fund has stipulated that the portfolio must have a minimum of 90% invested in euro government bonds and government guaranteed bonds.
Other bonds are allowed to a maximum of 10% of the total portfolio, with a minimum investment grade rating of AA.
The bond portfolio shall also not deviate more than 100 bps from the benchmark duration.
Fortunis says that preferred managers will have a track record of five years in Euro/EMU/European government debt management.