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Major fiduciary search takes to the global stage

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  • Major fiduciary search takes to the global stage

IPE-QUEST - Avida International, a Netherlands-based management and organisational adviser to pension funds, has issued a major search to find fiduciary investment and risk management for three Dutch pension funds, which manage almost €6bn in assets.

In the largest fiduciary management search via IPE-Quest, Avida International acknowledges it already has a deep knowledge of best-in-class investment and risk management services, but is spreading its search for suitable services beyond local borders in a bid to find the best possible tailored approach for its clients.

Paul Boerboom, managing director of Avida International, said each corporate pension fund has its own specific needs so is looking for tailored models.

Moreover, Avida is also prepared to look at services in countries including France, Germany, the UK and the US - where fiduciary management is beginning to take off - to find the best supplier.

"We have seen quite a big move among pension trustees who are rethinking their organisational models and risk management activities," said Boerboom. "I think this is a direct result of the recent crisis we have seen. And we have seen that from a few pension funds who have decided to outsource their risk management and investment activities."

He continued: In some cases, we are looking for fiduciary management. In other cases, it is a delegated approach. We are looking at parties which have state-of-the-art risk management to support pension trustees and help assess the mismatched risk of the fund. Integrated risk management is very important. And we are obliged to our clients to ensure we gain access to skillful managers anywhere in the world, they don't have to be based in the Netherlands. We want a good picture of what is available in the market," he added.

Before any formal selection phase begins, the search will generate a shortlist of 3-5 fiduciary service providers (FSPs) for each pension fund, and those lists are expected to vary depending on their specific requirements and knock-out criteria, saidinformation available on IPE-Quest search QN1060.

Due diligence will then be conducted on each of the candidates during the selection phase, and a questionnaire of open and closed answers will be presented to firms, as well as a request for a site visit and face-to-face meetings, to "measure the strategic and cultural fit between the clients and the candidate FSPs".

It is only at the final phase that a formal request for proposal (RFP) will then be presented.

A key requirement of that selection process means Avida - which advises clients will more than €100m in assets under management - is looking for providers which can supply the extensive integrated services or module frameworks with "relevant strategic advisory and investment processes" and "risk and performance reporting for clients.

Initial submissions must be presented by 4 November 2009 and further details of the search requirements can be found on QN1060 via IPE-Quest.

The news team is unable to answer any further questions about IPE-Quest tender notices, to protect the clients conducting the search. To obtain information direct from IPE-Quest, please contact Jayna Vishram on + 44 (0)209 7261 4630 or email jayna.vishram@ipe-quest.com.

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