Compenswiss, Geneva, is searching for an active fixed-income manager to run a $300 million allocation to U.S. high yield, the pension fund said on its website.
Eligible managers will have at least $1 billion in a high-yield strategy and at least a 12-year track record of managing high-yield bonds.
In addition, Compenswiss is looking for a return of 70 basis points above the benchmark on an annualized basis over three to five years. The Bloomberg Barclays U.S. High-Yield 1% Issuer Capped index will be used as the benchmark.
The 37 billion Swiss franc ($37 billion) social security funds, which provide first-pillar pension benefits to all Swiss citizens, had a 41.3% allocation to global bonds as of March 31. Some 14% of the global bonds allocation is invested in global high-yield corporate bonds.
The RFP is available on Compenswiss' website. Proposals are due May 25. Compenswiss will evaluate proposals by May 31. A hiring date was not provided.
A spokesman could not be reached to provide additional details.