​LD Pensions tenders €235m systematic HY bond mandate

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Denmark’s LD Pensions is searching for an investment manager to take on a systematic high-yield bond mandate, following a smaller tender for high-grade European asset-backed securities (ABS) earlier this year.

According to a notice on the EU’s TED tendering service, LD Pensions said the expected size for the mandate is DKK1.75bn (€235m), although – as the firm usually says in its tenders – it said this amount was strictly indicative because it could not determine the precise volume in advance.

The expected size for the ABS mandate tendered in February this year was DKK1.25bn.

LD Pensions said the new mandate being tendered was for investment in high-yield bonds, including securities meeting benchmark inclusion criteria for either the Bloomberg Barclays US High Index or the ICE BofA Developed High Yield index.

“The investment strategy is a long-only, systematic quant driven high yield strategy,” the firm said, adding that the successful manager would use one or more factors to drive allocation in the portfolio.

The deadline for receipt of tenders or requests to participate is 15 September at 11pm local time, and duration of the contract is 48 months – which can be renewed by 12 months up to three times, according to the tender notice.

Frederiksberg-based LD Pensions runs two funds – the older Cost-of-Living Allowance Fund (Lønmodtagernes Dyrtidsmidler) and the newer Holiday Allowance Fund (Lønmodtagernes Feriemidler).

A spokeswoman for Bloomberg told IPE on Friday that as of August 24, the Bloomberg Barclays fixed income benchmark indices had been rebranded as the “Bloomberg Fixed Income Indices”, marking the end of the five-year transition period following Bloomberg’s acquisition of Barclays Risk Analytics and Index Solutions (BRAIS) in August 2016.