Swiss pension fund tenders $100m high-yield mandate

IPE-QUEST – A pension fund based in Switzerland has tendered a $100m (€77m) short-duration high-yield mandate using IPE-Quest.

According to search QN1289, the mandate's remit will exclude the US.

The investor said it was looking for an active, "bottom-up manager, strong credit research and a focus on capital preservation".

Asset managers must have at least $500m in assets under management (AUM).

The mandate calls for a minimum track record of two years and a preferred track record of five.

There are no minimum or maximum tracking error guidelines.

Interested parties should state performance, gross of fees, to the end of 2012.

The closing date for applications is 12 April.

In a separate search, QN1290, a "large" corporate pension fund, also based in Switzerland, has tendered a $100m emerging market equity mandate.

The investor is looking for equal or lower volatility, or "superior drawdown characteristics", than offered by the MSCI Emerging Markets index.

Strategies with a focus on higher dividends or higher-quality stocks are preferred, but not a prerequisite.

In the case of a discretionary strategy, a track record of five years is needed. In the case of a quantitative strategy, however, a shorter track record is possible, the investor said.

The applicant must show "long-term experience and success" in developing and implementing quantitative strategies. The quantitative strategy can also be a pure smart indexing strategy.

The investor expects a positive information ratio over three and five years against the MSCI Emerging Market, after fees. Tracking error should be no more than 8%.

The investor expects managers to have at least $200m in AUM for the strategy and $2bn for the company itself.

The closing date for applications is 4 April.

The IPE.com 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.