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.
Documents for the TAA and emerging markets bond searches are available on a Belgium procurement website. Proposals are due Sept. 8.
