A Swiss pension fund is using IPE Quest to search for fixed income managers for a global ex-Switzerland portfolio worth between CHF1bn (€908.5m) and CHF1.5bn and for a Swiss portfolio worth the same amount.
According to search QN-2654, the global mandate will follow the Bloomberg Barclays MSCI Global Aggregate ex-CHF Sustainability Index. As for the Swiss bonds mandate (search QN-2655), the active segregated strategy will follow the SBI AAA-BBB 1-5 Total Return Index.
The global mandate, also an active segregated strategy, is expected to invest in global corporate and government bonds, hedged to the Swiss franc, it said, adding that portfolio currencies are to be fully hedged – hedge ratio must be between 95%-105% at all times.
According to the notices, up to 5% of assets in off-benchmark listed securities – subject to limitations, such as a minimum rating of BBB- and the issuer being a corporate – will be permited. The use of collective investment schemes (i.e. implementing the mandates via pooled vehicles), however, will not be permitted.
Additionally, the exclusion list of the Swiss Association for Responsible Investments (SVVK-ASIR) would need to be implemented on both mandates.
With regards to compliance with Swiss pension fund law, both searches would be subject to the relevant provisions of the BVG, the BVV 2, Swiss GAAP FER 26, and notices and recommendations of the Federal Social Insurance Office (FSIO), respectively the Occupational Pension Supervisory Committee OAK.
The maximum expected level of tracking error for both is 4%.
Participating managers should supply gross of fees performance data as of 31 December 2020 for both searches.
The deadline to participate has been set for 5pm UK time on 29 January.
The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation 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.
Leicestershire Council scheme seeks actuary
The pension fund for the Leicestershire County Council is looking to appoint a single firm to supply actuarial services, benefits services, governance consultancy and consultancy services to support specialist projects.
According to a notice on the Official Journal of the European Union, the majority of the services will be actuarial although there is also a need for the other services albeit to a lesser degree. The fund’s current actuary is Hymans Robertson.
The initial contract duration will be for five years.
Those wishing to participate have a deadline of 2 February.