Annualised Alpha Target:
Investment Process Characteristics:
- Active Manager using a bottom up fundamentally driven credit research process.
- Active Enhanced Index or Smart Beta processes will be considered if they are grounded in fundamental research, and meet the other requirements set out in this specification.
- Pure passive processes aimed at replicating an index will not meet our requirements and should not be proposed.
- A broadly diversified portfolio formed from the analysis of the entire US High Yield Universe.
- Off benchmark exposure will be set according to your recommendation.
- Other constraints will be agreed in co-operation with the manager based on your proposal (e.g. Cash Limits).
- A high quality portfolio with a focus on BB/B ratings.
- Exposure to high quality lower rated issuers is permitted if the credit fundamentals suggest a mis-rating or rating upgrade potential.
- Aim to achieve a minimum of your benchmark's return net of all fees over the credit cycle.
- Hard Minimum of 3 years live track record as of 30 June 2022, using the same process at the current firm.
- Track records built at a previous firm, backtests, paper based portfolios, and theoretical model portfolios will not be accepted as a substitute for a 3 year live track record at the current firm using the current process.
NOTE: All Performance and AuM numbers, and fee schedules requested should be provided in USD, in order to facilitate our comparative analysis. Our currency hedging decision for this mandate will be addressed later in our process.