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Mandate roundup: IPE-Quest, Environment Agency

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  • Mandate roundup: IPE-Quest, Environment Agency

EUROPE - A public pension fund on the Continent is looking to place a $200m (€162m) global corporate debt mandate using IPE-Quest.

In search QN1246, the scheme said it would expect the manager to pursue a buy-and-maintain strategy, with success measured by the Barclays Global Corporate or Absolute Return benchmarks.

"We are looking for a global corporate bond manager with a good track record in the credit selection, especially in Europe and the US," the scheme said in the mandate, adding that it aimed to achieve a stable return above its chosen benchmark.

Interested companies should have at least $1bn in assets under management overall, although no restriction is being placed on the assets within a comparable mandate.

The fund has also not placed any restrictions on minimum track record, implying it is open to newer managers in the sector.

However, any submissions should state performance, gross of fees, to the end of June this year. Interested parties should apply by 20 July.

Meanwhile, the UK's £ 1.8bn (€2.2bn) Environment Agency scheme is tendering for as many as three equity managers to assume responsibility for an environmental, social and governance (ESG) themed mandate.

The mandate, worth between £50m and £200m, would be granted to the managers following the completion of the investment strategy and strategic asset allocation review, the fund said.

A spokesman added that the assets under tender were currently with one of the scheme's passive managers following a re-allocation of mandates last year. None of the scheme's current managers stand to lose as a result of the award.

The low-volatility mandate should exceed the long-term return of the MSCI World or FTSE All World indices, but with no more than 80% of the volatility, with active management allowed to achieve the goals.

However, the fund said quantitative and passive approaches would also be considered, with the low volatility achieved through the stock selection and the portfolio's overall construction.

The local authority pension fund - split into an active and closed fund, with combined assets close to £2bn - said the segregated account mandate would be preferred, although pooled vehicles will be considered if properly regulated under UK tax law.

It asked that the use of derivatives, trading strategies and shorting be kept to a minimum.

It added: "The portfolio will preferably include an exposure to emerging markets, but options focused on developed markets alone will be considered.

"Broad exposure across global regions, industry sectors and company size bands is also preferred."

The fund said it would be interested in applications from managers with an understanding of, or willingness to, integrate the financial impact of ESG risk into the strategy.

It added that it preferred managers to employ an integrated process of equity selection over negative screening.

"We expect the managers to be responsible for voting and engagement with portfolio companies, or to be prepared to work with a governance overlay provider, in line with our internal policies and the general principles of good stewardship," it said.

"Again, in view of the nature of the mandate, we would be interested hearing from managers who can demonstrate the use of governance as a tool to reduce risk in the portfolio."

Interested parties with at least £2bn in assets under management have until 27 July to apply for the six-year mandate.

The Environment Agency added that not all contract awards would necessarily be funded, with one or more managers potentially kept in reserve.

The IPE.com 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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IPE QUEST

Your first step in manager selection...

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

  • QN-2558

    Asset class: Private Equity.
    Asset region: Global or Swiss.
    Size: USD $5-10m.
    Closing date: 2019-08-20.

  • 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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