GLOBAL - An institutional investor is looking to place a £450m (€540m) government-related bond mandate, using IPE Quest.

The client conducting search QN1218 asks that the mandate be invested to match the duration of investments, employing a client-directed overlay.

It also asks that the mandate be based on the Bank of America Merrill Lynch (BoA-ML) UK gilts 1-5 year index - with alterations made to accommodate client needs.

Turnover should be low, with a maximum of 2% to be held in cash at any one time and any coupon payments and bond redemptions being re-invested in line with the mandate’s duration. 

Strategies should also exclude any derivatives or unlisted bonds.

Applicants must have a proven track record of at least three years, although five would be preferred.

They should also have experience managing insurance assets, with at least £3bn in assets under management (AUM) in a similar mandate and a total AUM of £30bn across the company.

Further, they would preferably be based either in the UK or mainland Europe, falling within the GMT or CET time zones.

Interested parties have until 27 January to apply, submitting their performance to the end of 2011, gross of fees.

Meanwhile, a second mandate seeks to invest €1bn in euro-denominated government-related bonds.

Similar to the previous search, QN1219 asks that the investments closely match the duration of the portfolio, with a leeway of 0.5 granted.

The mandate is also “very fee sensitive”, the search adds.

Companies should employ the BoA-ML direct governments AAA-AA rated 1-5 year index as benchmark, with the possibility to steer investments outside the index requested.

Companies should have a minimum track record of three years, with five years preferred.

Additionally, the asset manager should have a minimum AUM of €5bn for the strategy, with a total of €30bn in assets overall.

Submissions should be made by 27 January, stating performance to the end of 2011, gross of fees.

The 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