IPE QUEST - A Switzerland-based institutional investor is looking for the manager of a corporate debt mandate covering global developed markets.
The initial size of the mandate is CHF50m (€33m), but the investor points out that this share can increase to CHF500m depending on the manager's success.
QN1046 states that the investor is seeking a manager with an active process. They will be benchmarked to the Merrill Lynch Customized Index, but hedged to Swiss francs.
A maximum tracking error (TE) of 5% has been set down in the TE guidelines for this mandate. The manager needs to have a minimum track record of three years in the class, but a ‘preferred minimum' of five years.
Performance data to the end of June this year will be required and this should be gross of fees. The investor stipulates that the performance figures must only be given in euros.
The investment universe is US dollars, British pounds, Swiss francs, as well as euros but all foreign currencies will be hedged in CHF.
The holdings must be investment grade and if a position is downgraded, it has to be sold within three months from the downgrade.
The modified duration is plus or minus 1.5 years from benchmark. The maximum holding per debtor is 1.5% of the portfolio.
Managers with knowledge and experience with the Swiss institutional funds or client marketplace will be at an advantage.
Submissions have to be made through IPE Quest by the closing date 14 September.