Swiss institution tenders CHF250m EM bond mandate using IPE Quest

An undisclosed institutional investor in Switzerland has tendered a CHF250m (€230m) emerging market bond mandate using IPE Quest.

According to search QN-2164, the actively managed mandate should be based in local currencies.

The investor expects asset managers to outperform the JP Morgan GBI EM Global Diversified benchmark by an average of 100 basis points (net of all fees) per year over a four-year period.

Tracking error should be no greater than 10%, and limits will apply to quasi-sovereigns, corporate bonds and non-local currency bonds.

Applicants should have at least CHF500m in assets under management (AUM) for the specific strategy and CHF5bn in AUM as a company.

They should also have a track record of at least three years, preferably five.

Interested parties should state performance, gross of fees, to the end of 2015.

Separately, a Swiss institutional investor also tendered a CHF250m, sub-investment-grade, high-yield bond mandate using IPE Quest.

According to search QN-2165, the active mandate will cover Europe, including the UK.

Investors should use the BofA Merrill Lynch BB-B European Currency Developed Markets Non-Financial High Yield Constrained (HP4M) as a benchmark, keeping tracking error below 10%.

The investor will accept any non-investment-grade bond from a corporate issuer.

Convertible bonds and emerging market bonds are not part of the universe.

Exposure to financials, senior loans and bonds rated lower than B- will be limited.

Applicants should have at least CHF500m in AUM for the specific strategy and CHF5bn in AUM as a company.

They should also have a track record of at least three years, preferably five.

Interested parties should state performance, gross of fees, to the end of 2015.

The deadline for both applications is 11 March.

The IPE news team is unable to answer any further questions about IPE Quest 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.