Pension investment services

Tender description

The Pension Fund of the London Borough of Newham invites proposals for the management of an investment in Global High Yield Bonds through a UCITS pooled fund vehicle. The Pension Fund of the London Borough of Newham does not wish to be contacted during the tender process. Please contact bfinance for any queries regarding the tender. Asset Class: Global High Yield Bonds Size of mandate: Approx. 60 000 000 GBP to be invested with 1 manager. Investment Vehicle: — UCITS Pooled funds only. Proposals for a segregated account will not be considered — The client does not want to hold more than 20 % of a fund's assets, i.e. min. 240 000 000 GBP fund AUM. — GBP hedged share class preferred. Preference also for an Accumulative share class but distributive share class will also be considered. Benchmark: Participating managers may propose the most appropriate benchmark for their strategy. It will preferably be a Global High Yield Bond index from either Bofa Merrill Lynch or Barclays. Investment Objective: 1-2 % out-performance above the relevant benchmark, with a focus on capital preservation and managing default risk. Investment Constraints: — Portfolio mainly invested in high yield, rated bonds of global corporate issuers. — Global orientation is a must (no pure USD strategies). The portfolio should demonstrate the ability to invest in non USD denominated bonds. — Max 10 % in investment grade rated bonds. — Max 20 % in CCC rated bonds. — Max 20 % off-benchmark investments. — No specific duration limits, but large deviations from benchmark level would need to be justified. — Derivatives allowed only for hedging purposes and risk management. The use of derivatives for portfolio leverage will not be accepted. — Borrowing or short selling is not permitted.