A German corporate investor is looking for an asset manager to oversee a $100m (€79m) bond mandate using IPE-Quest.
According to search QN1462, the German client would appoint the best submission as a standby manager for one its current existing managers.
The $100m high-yield US corporate bond mandate would be benchmarked against the Bank of America Merrill Lynch US non-financially constrained high-yield BB-B index, with investments hedged against euro currency risk.
Interested managers should have at least $1bn in similar mandates and six years’ experience in managing portfolios, although a track record of 10 years would be preferred.
Applications are welcome until 7 November, submitting performance data to the end of September.
Meanwhile, M&G Investment Management has been hired by the London Borough of Sutton Pension Fund to manage an active bond mandate.
The manager has replaced Aberdeen Asset Management.
The divestment was completed by the end of the second quarter, according to minutes from Sutton’s pensions committee.
The local authority scheme chose to invest 40% of the £74m (€92.3m) former Aberdeen mandate in M&G’s index-linked fund and the remaining 60% in its alpha opportunities fund.
The mandate accounts for a significant chunk of the London council’s £431m in pension assets.
The £100m award aims for the portfolio’s dividend growth to outstrip the UK rate of inflation.