Pensioenfonds UZ Gent is searching for money managers to run a tactical asset allocation portfolio and an emerging markets debt strategy.
The pension fund for Ghent University Hospital in Gent, Belgium, is searching for one manager to run an initial €82 million ($90.9 million) in TAA, investing across liquid asset classes, against a benchmark of 50% equities and 50% bonds, said tender documents on a public procurement website.
The TAA strategy aims to improve risk-adjusted returns vs. a fixed or strategic asset allocation, the documents said, and derivatives may be used to hedge certain exposures or for efficient portfolio management.
The allocation represents about a 15% weighting of the total portfolio of about €550 million, but it will be built up over time based on new inflows into the pension fund or reallocations. Chris Desmet, a consulting actuary at Willis Towers Watson, which is the consultant on the search, said it is a new allocation, made up by reallocation and new assets. Mr. Desmet did not comment further.
A search has also been launched for a manager to run €16 million in active emerging markets bonds. Mr. Desmet said this is a possible replacement, but did not comment further. The allocation will be invested in a combination of government bonds, quasi-sovereign and corporate bonds, both hard and local currency. The documents said the strategic weighting of this allocation is 3% of the portfolio, and the size of the allocation will significantly increase due to expected monthly net inflows to the pension fund.