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Mandate roundup: Compenswiss targets $500m for EMD local currency

The CHF37bn (€33bn) manager of Switzerland’s social security funds is seeking to invest $500m (€449m) in emerging market local currency bonds via an actively managed fund.

In a request for proposal document, Compenswiss said any emerging market bonds were eligible for the universe, with limits to apply on quasi-sovereigns, corporate bonds and non-local currency bonds.

Performance would be measured against JP Morgan’s diversified global emerging market bond index (JP Morgan GBI-EM Global Diversified), with a target of annual outperformance by an average of 100 basis pints, net of all fees, over a four-year cycle.

The maximum tracking error target is 5%.

The deadline for initial proposals is 10 October. A “long” request for proposal document is to be released on 1 November.

The search is available via IPE Quest. According to search QN-2569, Compenswiss wants managers to have at least $5bn in assets under management as a firm, and a track record of at least three years. Applicants should state performance gross of fees to 30 June. 

Luxembourg’s FDC tenders out €5bn trio of passive mandates

Luxembourg

Credit: Waldo Miguez

Luxembourg

Luxembourg’s €18bn pension reserve fund has tendered out €5bn in passive equity and bond mandates on behalf of its investment vehicle, which invests the majority of the reserve fund’s assets.

Fonds de Compensation (FDC) is looking to award a €1.955bn euro denominated bond mandate, a €2.285bn global bond mandate, and a €675m emerging market equity mandate.

The global bond mandate requires the exchange rate risk to be hedged.

A spokesman for the fund told IPE the mandates were originally awarded in 2010 and would reach their legal maturity next year.

According to the sovereign investor’s 2018 annual report, Credit Suisse Asset Management currently holds the euro denominated bond mandate, BlackRock the global bond mandate, and State Street Global Advisors the emerging market equity mandate.

FDC said the launch of the request for proposal was approved by the board in July. 

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IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2572

    Asset class: High Yield Bonds.
    Asset region: Global.
    Size: $200m.
    Closing date: 2019-11-27.

  • QN-2573

    Asset class: Real Estate.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-06.

  • QN-2575

    Asset class: Core Real Estate Muli-Manager Separate Managed Account.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-20.

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