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European pension fund tenders €360m global equity investment

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  • European pension fund tenders €360m global equity investment

IPE QUEST - A European pension fund is looking to invest $500m (€358m) in global equity, while a second based in Scandinavia hopes to increase its large-cap exposure by $125m, using IPE Quest.

The first mandate, QN1169, sees an industry-wide pension fund seeking to award a $500m, actively managed global equity mandate, with the investment manager asked to provide advice on tactical equity allocation as well.

While the $500m is the upper limit for the award, the scheme would also consider splitting the sum into several mandates if necessary.

Expected return is 75 basis points above gross excess return, with accounts made for a reasonable tracking error and the scheme's investment strategy implemented using derivatives.

Managers with past experience only in the area of global tactical asset allocation are welcome to apply, but are asked to demonstrate how this has enhanced its alpha returns on a consistent basis.

Interested parties should preferably have three years of experience and are asked to apply by 1 April, submitting their performance data gross of fees to the end of 2010.

Meanwhile, a Scandinavian pension fund is looking to increase its exposure to the large-cap equity market by investing $125m in the region.

Funds will only be allocated to companies in developed markets, with the MSCI World Value TR net index applied as a benchmark.

The scheme is looking for a boutique investor with at least three years' experience, but preferably five years, with global value investing, excluding deep value investing.

It also asks that the current management structure for the portfolio be unchanged for at least three years, so that the lead portfolio manager, their team and the investment approach have been in place for that time.

Additionally, the value-adding active approach should limit exposure to less than 70 stocks.

Interested parties should submit their applications gross of fees, including performance data until the end of last year by 4 April.

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 direct from IPE Quest, please contact Jayna Vishram on +44 (0) 20 7261 4630 or email jayna.vishram@ipe-quest.com.

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