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United Kingdom-London: Pension investment services
Section I: Contracting authority
Section II: Object
Pension fund investment — Global High Yield Bond.
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.
— 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.
— 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.
It is intended that the contract will continue in force until such time as is determined in accordance with the provisions contained in the contract.
See the procurement documents
The procurement documents can be obtained on the bfinance website https://impp.bfinance.com/ Alternatively you may contact bfinance using the email address newhamHY@bfinance.com
The Pension Fund of the London Borough of Newham does not wish to be contacted during the tender process.
Section III: Legal, economic, financial and technical information
See the procurement documents.
An institution authorised to accept deposits in the United Kingdom. Providers must be authorised under the Financial Services Act 1986 or any equivalent legislation in any EU member state. Providers must satisfy the requirements of the Superannuation Act 1972 and the Local Government Pension Scheme (Management and Investment of Funds) regulations 1998 (as amended).
Section IV: Procedure
Section VI: Complementary information
As detailed in procurement documents.