SWITZERLAND - A Swiss institutional investor is using IPE-QUEST to look for advice on building a model portfolio for two sustainable equity mandates, one in the US and one in Europe.
In searches QN797 and QN798 the investor gives details of the portfolios that are to be created and which are then to be assigned to a manager as index enhanced mandates with a maximum 2% tracking error.
The selected model portfolio should outperform the benchmark by an average of 50 bp per year net of all fees (advisory and management) over a cycle of 3 years.
Only equities present in the index universe (MSCI North America and MSCI Europe respectively) are allowed in the model portfolio.
Appropriate sustainability filters which cover standard financial criteria, supplemented by aspects of ecological, social and entrepreneurial sustainability should be applied, the institution states.
Turnover, hence trading costs, should be kept to a minimum with flat management fees.
The search closes April 23 2007.