Investment Manager RFP Alerts

- Strong idea generation process that can uncover new alpha opportunities that other investors miss.

- Wide coverage of European companies across all market capitalizations.

- Your decision to buy or sell a stock will be based on fundamental company research.

- ESG risks and opportunities will analyzed as part of your fundamental company research process.

- Portfolio construction will be used effectively to manage unintended risks and diversify unrewarded risks.

In order to maximize the long-term alpha generation of the portfolio, the manager may:

- Take a flexible approach to the benchmark, but at all times measure risk and return against our benchmark.

- Take country and sector risk versus our benchmark.

- Take style risk versus our benchmark.

- Allocate to non-benchmark stocks including small and mid-caps.

Irrespective of which country, sector, style or size risks you take, the portfolio should be managed to an ex-ante tracking error range of 2.0 to 6.0 versus our benchmark.

- Hard minimum of 3 years live performance numbers as of 31 March 2023.

- Aim to deliver at least 150 basis points alpha p.a., gross of fees on a rolling 5-7 year period.

- Clear definition of desirable and undesirable company ESG characteristics.

- Evaluate company ESG credentials on both a current and forward looking basis.

- Directly/indirectly engage company leadership with a view to increasing their performance on ESG metrics.

- Only active quantitative and/or fundamental managers are in scope.

ESG Focus:

- Integrates ESG considerations into the portfolio in the broad sense. Or targets a specific range of E, S and/or G goals.

- Portfolios that focus on only one sub-ESG theme will not be considered - these portfolios are too narrow for this allocation.

- Your portfolio will at all times reflect the ESG characteristics you define in your investment philosophy/objectives as desirable.

Broad Guidelines:

- The portfolio is not constrained by the country or sector weightings of our reference index
(For example, an unconstrained approach is in scope).

- The portfolio is not constrained by the constituents of our reference index.
(For example, off-benchmark investments are allowed with no set limits).

- The portfolio is not constrained by company market capitalisation.
(For example, off-benchmark small/mid caps are allowed with no set limits).

- The portfolio is not constrained by the growth or value exposure of our reference index.
(For example, the portfolio may invest in growth and/or value stocks with no set limits).

- The portfolio may not invest in illiquid holdings with low trading volumes.
(Specific limitations will be agreed with the manager).

- The portfolio manager is not required to hold a hard minimum of stocks in the portfolio.
(For example, a concentrated portfolio is in scope).

- The portfolio may include holdings listed in both emerging markets (0% - 50%) and developed markets (0% - 100%).
(For example, 100% pure developed market portfolios are in scope. As are 50/50 emerging/developed market portfolios).

- The portfolio does not need to be managed to a specific tracking error range/target.
(For example, a benchmark agnostic approach is in scope).

- The portfolio may be managed against your preferred benchmark or be benchmark agnostic.

- You should have a clearly defined (out)performance target, or a target that is aligned to your specific ESG investment objectives.

- The portfolio should perform in line with your stated performance target, without compromising on the ESG characteristics you defined as desirable in your investment philosophy/objectives.

- Any outperformance should be clearly attributable to the ESG characteristics that you define, and target, as desirable.

- The track record you provide must include a hard minimum of 1 year live performance numbers as of 31 January 2023.

- You should provide your track record in USD.

- Managed by an experienced team with clear lines of responsibility for final decisions.
- The types of companies in which you invest should be clearly defined.
- Based on proprietary research that creates an informational advantage for investing in global emerging markets.
- We have a preference for fundamental managers and quantitative managers that use fundamentals-based models.
- Blackbox (quantitative) processes will not be considered.

- Growth portfolio.
- 30 stocks hard minimum.
- You are allowed to take a flexible approach to country and sector over/under weights.
- Avoid companies where you believe there is no visible improvement in how they manage Environmental, Social and Governance risks.

- Target an information ratio of 0.5 or greater.
- Prove that your proprietary research is able to generate alpha in emerging markets without compromising on company specific ESG issues.
- 3 year track record as of 31 Dec 2022 (soft requirement - shorter track records will be considered if you believe we should take a serious look).

- You should have ample research capabilities to cover a wide spectrum of issuers globally. Or utilise data screening techniques that are able to narrow down the universe to a more manageable size and simultanenously identify interesting opportunities for further analysis.

- Be designed to continuously identify new investment ideas from the EMD Local universe, using either your top-down thematic/macro insights and/or pure bottom-up issuer analysis.

- Risks relating to geo-political themes, macroeconomics, microeconomics, country, duration, ESG, currency, etc... will be continuously measured, managed and integrated into your process.

At this stage we are open to different types of portfolios. It is of more value to us to understand why you have chosen for a specific portfolio design (e.g. higher quality, duration neutral versus your benchmark, etc...). And why this is aligned with our interests as an allocator to EMD Local Bonds. Allocations to hard currency and EM Corporate bonds are allowed up to a total joint maximum of 15 %.

- We are open to boutiques and large EMD Local managers. As such we are not setting any specific requirements on track record or AuM minimums. Your entire proposition will be considered, not just performance.

- To facilitate manager performance comparisons, please ensure you upload your longest monthly fund performance track record in USD.

- If your USD fund has a short track record but follows an equivalent USD product with a longer track record (e.g. a separate account track record), please provide the longer track record explaining what you have provided.

- If you do not have a USD fund/product but are prepared to launch a new share class, use the longest track record you have specifying the base currency of the track record provided.

- You should have ample research capabilities to cover a wide spectrum of issuers globally. Or utilise data screening techniques that are able to narrow down the universe to a more manageable size and simultaneously identify interesting opportunities for further analysis.

- Be designed to continuously identify new investment ideas from the Global High Yield universe, using either your top-down thematic/macro/sectoral insights and/or pure bottom-up credit selection analysis.

- Risks relating to region, country, sector, duration, ESG, currency, etc... will be continuously measured, managed and integrated into your process.

At this stage we are open to different types of portfolios. It is of more value to us to understand why you have chosen for a specific portfolio design (e.g. higher quality, duration neutral versus your benchmark, etc...). And why this is aligned with our interests as an allocator to Global High Yield at this stage in the credit cycle. Allocations to both bonds and loans are allowed.

- We are open to boutiques and large high yield managers. As such we are not setting any specific requirements on track record or AuM minimums. Your entire proposition will be considered, not just performance.

- To facilitate manager performance comparisons, please ensure you upload your longest monthly fund performance track record in USD.

- If your USD fund has a short track record but follows an equivalent USD product with a longer track record (e.g. a separate account track record), please provide the longer track record explaining what you have provided.

- If you do not have a USD fund/product but are prepared to launch a new share class, use the longest track record you have specifying the base currency of the track record provided.

- Sufficient resources to cover the Pan-European issuer universe.
- Based on in-depth credit research.
- Repeatable process that has been tested in different market environments.

- Risk should be sufficiently diversified across countries, sectors and issuers.
- The main driver of performance will be credit risk.
- Duration risk will be a smaller contributor to performance.

- 3 year live performance record as of 31 October 2022 in either a fund or composite format. (Strict requirement).
- Demonstrate that your active management approach generates better risk adjusted returns than a pure passive approach.
- Outperformance of the index is welcome, but it is not a prerequisite for participation. We will focus on your risk-adjusted returns, not just alpha.