An undisclosed pension fund based in the Nordic region has tendered a $350m (€219m) US large-cap equity mandate using IPE-Quest.
According to search QN1458, asset managers must show they have, historically, “been capable of beating the MSCI USA or similar benchmarks”, independently of the market or own investment style.
The manager must also be able to offer the strategy in a segregated mandate, and willing to comply with the pension fund’s SRI policy.
The initial size of the mandate is expected to be $350m but with a “potential for twice the amount for the right manager”.
The investor calls for actively managed, long-only products; enhanced index or extended products will not be considered.
Further, all type of traditional investment styles will be accepted, while minimum volatility and other single-risk-premia strategies will not.
For products with active, fundamental, bottom-up approaches, quantitative approaches – “regardless of base in fundamental stock ratios” – will be prohibited, as will be the use of derivatives or leverage.
The expected excess return level is 2-4% per annum, with a “suitable” tracking error.
Products with a three-year track record “are a must”.
The closing date for applications, stating performance to the end of June, is 15 October.
If you do have any questions regarding this search, please email info@ipe-quest.com. Questions will not be accepted after 13 October.
No comments yet