A swiss pension fund has put out a request for information as a first step to define its requirements and needs in terms of both possible asset region allocation and the equity management for a low volatility mandate, via IPE Quest’s Discovery service.

According to search DS-2587, the pension fund is seeking to invest $500m (€448m) in global core low volatility equities, follwoing the MSCI Minimum Volatility Indices.

The fund is considering passive, enhanced index or active approaches, and can eitehr be a pooled or segregated contract.

Managers applying shoudl have at keast $1bn of assets under management for the asset class, and should state performance data to 30September 2019, net of fees.

Their track record should be of at least five years and have at least 10 clients/mandates within low volatility equities management.

 

The scheme added that as a second step, there might be a request for proposal as a follow up and for an in depth due diligence the fund would contact four or five managers directly.

Applications can be in either English or German. the deadline to participate is 10 January 2020, 17:00 UK time.

IPE Quest Discovery is a pre-RFP service allowing institutional asset owners to carry out a preliminary search for managers.

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 jayna.vishram@ipe-quest.com.

 

Brunel appoints Blackrock to provide bespoke risk management framework

Brunel Pension Partnership has appointed BlackRock to deliver bespoke investment risk management services to the investment pool’s Local Government Pension Scheme (LGPS) clients.

Brunel undertook a thorough search for the right partner to deliver the best possible solution, with a view to offering its clients the ability to manage a range of risks, including inflation, interest, equity and currency risks.

David Cox, head of listed markets at Brunel, said: “Rather than limiting risk management to traditional liability driven investment (LDI), we are keen to offer our clients a comprehensive risk management framework.”

He added that Brunel is “keen to empower” its member funds and this includes “equipping them to manage their strategic risks and exposures across asset classes.”

The framework being offered with BlackRock ”will enable us to meet the investment risk management requirements of our clients in these uncertain times,” Cox continued.

BlackRock was selected due to its technical expertise, range and scale, and its ”willingness to understand and address the particular needs of the LGPS,” he said.

 

Hymans Robertson advises on £800m longevity swap for FTSE100 pension scheme

Consultancy Hymans Robertson has led the advice on a £800m (€945m) longevity swap transaction with Zurich for a FTSE100 sponsored pension scheme.

The longevity swap protects the scheme against the risk of its pensioner and dependant members living longer than expected, the advising firm announced. 

Hymans Robertson acted as lead adviser on the transaction, and, together with legal transactional counsel, CMS, negotiated a new efficient structure with Zurich to meet the requirements of the scheme.

The majority of the longevity risk was reinsured by Hannover Re, with the scheme benefitting from diversification of counterparties under an ‘Enhanced Pass Through’ structure.

The transaction was unique in its demographics and covers a significant proportion of non-UK overseas lives, providing the scheme with valuable protection.

A trustee at the scheme said: “This continues the trustees’ strategy to de-risk the scheme, with this transaction significantly reducing the key outstanding risk for the scheme.”

The official added that Hymans Robertson’s specialist experience in the longevity insurance market “was invaluable”. “Through their efficiency and tailored broking approach the Scheme was able to save money at each stage of the process.”

Baljit Khatra, risk transfer consultant at Hymans Robertson and lead adviser, said: “The scheme had already taken significant steps to reduce financial risks, and we identified longevity as being a material outstanding risk for the scheme.”

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