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European scheme tenders €1bn LDI mandate

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  • European scheme tenders €1bn LDI mandate

IPE QUEST - A European pension scheme is tendering a €1bn liability-driven investment (LDI) mandate, using IPE Quest.

Managers applying for the mandate advertised in QN1174 should note that the fund, based in continental Europe, will benchmark the investment on its euro-based liabilities and only wishes exposure to assets in the region.

The mandate notes further: "The performance of the liability stream will be based on changes to its net present value as calculated using the methodology as prescribed by the Dutch central bank [De Nederlandsche Bank] and agreed with the client."

The pension fund asks that the portfolio be managed in a risk-controlled manner, in the sense that no active bets on the movement and share of interest rate curves be taken.

It also prohibits any intentional investments regarding movements on currency exchanges.

It further says that no exposure is allowed to companies unrelated to European governments, unless the duration of the company bond is such that it could be classified as money market exposure.

Asset managers should have at least €10bn in assets under management in any proposed LDI mandate, with €25bn overseen by the company in total.

They should additionally have at least three years of experience, with five years preferred, and submit applications stating performance net of fees to the end of last year by 12 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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