IPE-QUEST: Scandinavian fund tenders US high yield debt
SCANDINAVIA - A Scandinavian pension fund has tendered an initial $50m (€39.9m) in American high yield debt via IPE-Quest.
The search (QN673) says the mandate is expected to be established at a size of $50m and is expected to have a maximum size at $125m.
The mandate is primarily a US high-yield debt mandate. It could be extended with a possibility to invest to a smaller extent in non USD-denominated debt.
Further guidelines include:
* Managers should have a proven ability to generate significant alpha with a moderate market exposure. The ability to implement conservative strategies in a market downturn will be a crucial qualification.
* Short-selling (credit default swaps and forwards) will be allowed.
* Leverage will not be allowed.
* The style is expected to be active.
* Performance fees could be negotiated.
* Hedging of the base-currency position will take place outside the mandate.
* The mandate must be managed on a segregated account.
The mandate will be subject to the pension fund's ethical restrictions for investments.
The manager is not allowed to invest in securities blacklisted by the pension fund.
The closing date for replies is November 6.
On Monday another search (QN672) via IPE-Quest showed that a Scandinavian pension is tendering an initial $50m (€39.9m) in Euro-zone high yield debt.