Leicestershire County Council Pension Fund, Leicester, England, is searching for an active global credit manager to run up to £150 million ($247 million), said Colin Pratt, investments manager at the £2.3 billion fund.
The initial funding is expected to be about £70 million, but could be increased as valuations become more attractive, Mr. Pratt said.
The return target for the mandate has yet to be decided, but a successful manager will be given “great freedom to invest where they think good (real) returns will be had,” Mr. Pratt said. As long as the manager creates a well-diversified portfolio that is 80% liquid in normal circumstances, no restrictions will be made on geographies, currencies or distressed assets, and there will be no minimum allocation to investment-grade bonds.
Hedge fund and limited duration strategies won't likely be appropriate for this mandate, Mr. Pratt said.
Managers must have experience managing emerging markets sovereign debt (denominated both in local currencies and developed market currencies), asset-backed and mortgage-backed securities, subinvestment-grade debt and other credit strategies, he said.
Proposals are due June 9. A selection could be made by the end of the year, Mr. Pratt said. Further information is available by sending an e-mail to investment consultant Hymans Robertson at [email protected].