A Scandinavian pension fund has tendered a long-only global emerging markets equity mandate using IPE-Quest.
According to search QN1395, the initial mandate size will be $150m (€109m), but the investor expects to increase this amount.
The mandate is likely to be a segregated account, but managers should also state whether “a UCITS fund is available”.
The investor is looking for a boutique with a strong focus on emerging markets, and calls for a fundamental, active approach, a proven process with a strong valuation framework, a solid long-term track record and a relatively low turnover.
It also requires an all-cap strategy, unconstrained versus the benchmark, with the ability to have a 0% weight in large benchmark stocks and large benchmark countries.
The investor said fund managers must be prepared to take quarterly meetings to discuss portfolio and market developments, positioning and performance.
It added: “We are not looking for an income strategy, a deep-value strategy, an EM consumer strategy or a managed volatility strategy.
“Strategies that have been created due to an existing strategy having reached full capacity will not be considered for this mandate.
“We are long-term investors and aim to obtain a deep understanding of our external managers’ performance drivers, investment philosophy and process.”
The mandate calls for a minimum tracking error of 4%, using the MSCI Emerging Markets IMI Net TR as benchmark.
Fund managers must have a track record of at least three years, preferably six.
Applicants should state performance, gross of fees, until the end of 2013.
The closing date for applications is 20 March.
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 directly from IPE-Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email email@example.com.