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Mandate roundup: IPE-Quest, Leicestershire Council, JPMAM

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  • Mandate roundup: IPE-Quest, Leicestershire Council, JPMAM

EUROPE - A corporate pension fund based in Continental Europe has tendered a $50m (€37m) European fixed income mandate using IPE-Quest.

According to search QN1232, the active mandate, which includes the UK in its remit, calls for a tracking error no greater than 3%.

The corporate scheme said it was looking for a manager that could outperform the Barclays Capital Euro Aggregate Bond index.

Asset managers should have at least $1bn in assets under management (AUM) and at least $750m in AUM for the mandate.

They should also have at least three years' relevant experience, preferably five, stating performance gross of fees to the end of 2011.

The deadline for applications is 16 April.

In other news, the Leicestershire County Council pension fund has awarded an active global credit mandate to JP Morgan Asset Management, which beat out 10 other contenders.

The initial expected funding amount will be £70m (€83m), although that amount could be increased to as much as £150m, the council said.

While the return target will be "subject to discussion", the council said its aim was to achieve "meaningful" real absolute returns - assessed against the UK retail prices index - based on the income from a diversified credit portfolio, with limited use of leverage.

The £2.3bn scheme first put the mandate out to tender in May last year, with the annual report indicating it would serve to consolidate two pooled fund mandates for UK credit held by UBS Global Asset Management and Aviva Investors.

A spokesman for the scheme told IPE that while the mandates had been reassigned, it came as part of a strategic shift away from UK credit.

Finally, the UK's Green Investment Bank (UKGI) is tendering several mandates worth up to £100m to launch its investment in sustainable developments.

Managers would be granted capital to deploy alongside matching investment from the private sector, with the government hopeful it can attract £20bn from domestic pension funds for infrastructure projects.

"As a broad estimate UKGI intend to invest between £20m - £50m with each fund manager, with the investment injected on a project by project basis. UKGI envisages investing up to £100m through Fund Managers, depending on the quality of proposals made," the tender notice said.

Although the mandate only asks for managers to consider non-domestic energy efficency projects, the government-backed instition also has a mandate to invest in commercial and industrial waste plans, as well as off shore wind.

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 jayna.vishram@ipe-quest.com.

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