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European pension fund tenders $700m low-volatility equity mandate

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An undisclosed European pension fund has tendered a $700m (€642m) low-volatility global equity mandate using IPE Quest.

According to search QN-2151, the active mandate could possibly be split between two managers.

The client said its primary aim was to achieve well-diversified global equity exposure to developed markets with significantly less volatility than the MSCI World index.

A secondary aim is to have an alpha-generating, systematic quant process.

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“As such,” the client added, “the preferred strategy maximises the Sharpe ratio with significantly less volatility than the overall market, rather than minimising absolute volatility.”

The mandate must also incorporate the pension fund’s blacklist of companies in violation of certain ESG principles.

The client said assets under management were likely to increase “significantly” in the coming years due to fund growth.

While there are no tracking-error guidelines, the client does calls for a minimum track record of three years and at least $1bn in assets under management.

Applicants must also have a track record in managing global equity low-volatility strategies

Interested parties should state performance, gross of fees, to the end of 2015.

The deadline for applications is 5 February.

The IPE 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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  • QN-2559

    Asset class: Multi Assets.
    Asset region: -.
    Size: EUR 15m (may be split into two mandates EUR 7.5m).
    Closing date: 2019-09-06.

  • QN-2560

    Asset class: Private Equity.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

  • QN-2561

    Asset class: Infrastructure.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

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