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Pension funds tap growing prospects for emerging markets

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  • Pension funds tap growing prospects for emerging markets

IPE-QUEST - Two European pension funds are pursuing the predicted surge of interest in emerging markets equity investments and have launched searches for suitable EM managers, using IPE-Quest.

Details of QN1073 reveal a Swiss pension fund may invest CHF400m-600m (€271m-€407m) in passive long-only emerging marketing equities, benchmarked to the MSCI EM Total Return local index.

The fund's request for information (RFI) states there will be no hedging into Swiss francs but the segregated account must be based on an enhanced passive strategy delivering full replication or "optimized sampling".

Tracking error must be less then 2%, said the fund, while interested firms should have a preferred minimum track record of five years of a similar emerging market equity product.

Management must be flexible so officials can increase or decrease exposure to match internal tactical asset allocation decisions, and performance must be stated to 31 December 2009, with completed data returned by 25 January 2010.

Elsewhere, a German pension fund is looking to invest $150m (€103m) in active global all-cap/large cap emerging markets equities.

Information provided in QN 1074 stated the fund intends to benchmark against the MSCI EM index but carries a much higher tracking error than the Swiss fund, as it is willing to accept minimum and maximum tracking errors of 2% and 10% respectively.

Performance must be stated net of fees to 31 December 2009 and preferred minimum track record is five years.

Interested parties must show their interest via IPE-Quest by 19 February 2010.

The news team is unable to answer any further questions about IPE-Quest tender notices, to protect the clients conducting the search. To obtain information direct from IPE-Quest, please contact Jayna Vishram on + 44 (0)209 7261 4630 or email jayna.vishram@ipe-quest.com

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  • QN-2570

    Asset class: Direct Real Estate.
    Asset region: Europe excluding Switzerland.
    Size: 150m.
    Closing date: 2019-10-30.

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