EUROPE - Denmark-based Nykredit Asset Management has tendered a large-cap Japanese equities mandate using IPE Quest.
According to search QN1198, beginning assets under administration for the mandate will be approximately $250m (€174m), but Nykredit said it expected that to double within three years.
The benchmark should be either the MSCI Japan or the Topix First Section, but Nykredit said this might be subject to change.
The excess return target for a market cycle must be at least 200-300 basis points per year, the company said.
The mandate will be set up as a segregated account, and the selected manager must be willing to manage a Danish mutual fund within Nykredit's current Multi Manager Invest fund structure (www.multimanagerinvest.dk).
Multi-manager products, index products, enhanced index products and carve-outs will not be accepted. The use of neither derivatives nor leverage will be permitted.
Products with a proven track record of five years will be preferred, but three years is the minimum requirement.
Products with a track record of less than three years are welcome to participate if the investment team has a proven track record of at least three years from a competing asset manager.
Esben Ørum Tiedemann, senior portfolio manager, said: "Our current manager on Japanese equities has unfortunately decided to make a change to the product we invested in. Based on our ongoing monitoring, we therefore concluded we needed to replace them.
"We are open for all investment styles and look for an active manager with an alpha target above 200bps a year. We plan to complete the search within the next three months, ending with an onsite visit around October this year.
He added: "Even though Japanese equities have been under-owned by many foreign investors, Nykredit is still committed to the asset class. We actually decided to reduce our underweight to Japanese equities in our asset allocation model and believe the asset class has the potential to be a winning tactical bet in 2011."
Questions regarding this search should be directed to Esben Ørum Tiedemann (eti@nykredit.dk).
The deadline for applications is 29 July.
To hear more about the investment prospects for Japan, you can view an interview with the always-entertaining Hugh Hendry on the Asian Investment Managers website: www.funds-asia.com
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