A Swiss pension fund, with assets valued at $13bn (€10.9bn) is using IPE Quest to search for asset managers for emerging market (EM) equity in semi-active and passive strategies.
According to search QN-2714, the fund is seeking two semi-active EM equity managers – each to manage $250m – that have a strong focus on sustainability without sacrificing returns.
The MSCI Emerging Markets Low Carbon Target Net Total Return USD has been set as a guide benchmark, the notice said.
Additionally, to control the tracking error, participating firms need to control the carbon intensity of their portfolio vs. the benchmark. The carbon intensity is allowed to be a maximum 25% higher than the benchmark, with an aim to reach an average tracking error of about 2%, it added.
Participating managers will need to have at least $2bn in assets under management (AUM) for this asset class, with a minimum of at least $4bn in total AUM.
When applying, performance as of 30 June 2021 should be stated.
As for the passive strategy, the pension scheme is looking for one or two EM equity managers that replicate the MSCI Emerging Markets Low Carbon Target Net Total Return USD benchmark.
As per search QN-2715, each appointed manager will also be running a mandate worth $250m.
Participating managers will need to have at least $4bn in AUM for this asset class, with a minimum of at least $10bn in total AUM.
The deadline to participate in both searches has been set for 14 September 5pm UK time.
Nordic insurer also follows EM equity path
A Nordic insurance company is also looking to appoint an EM manager for a $40m mandate.
The strategy is to invest in large-cap and adopt a core active strategy via an existing fund (UCITS/OIEC-compliant) as a segregated mandate is of no interest to the insurer, according to search QN-2716.
Participating managers will need to have at least $500m in AUM for this asset class, with a minimum of at least $5bn in total AUM.
The strategy is to follow the MSCI Emerging Markets Index and the minimum tracking error has been set to 3%, with a maximum to 10%.
The closing date for applications is 16 September 5pm UK time.
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 firstname.lastname@example.org.