Hampshire County Council Pension Fund, Winchester, England, is searching for managers to run about £600 million ($804 million) in multiasset credit strategies.
The £6.6 billion pension fund said in a notice filed with European procurement website Tenders Electronic Daily that it has a strategic allocation to multiasset credit of 10%. It said it is "a new addition to its investment strategy."
The fund wants up to three money managers to run the allocation, with an investment objective of U.K. three-month LIBOR plus 3% to 5% per annum net of fees, over three- and five-year rolling periods.
Managers should invest primarily in a portfolio of U.S. and European high-yield fixed and floating-rate corporate debt instruments. Investment in corporate debt instruments will include senior secured loans, second lien loans, senior unsecured and subordinate loans, and senior secured and unsecured high-yield bonds.
Managers may also invest up to 25% of the portfolio on an opportunistic basis in other debt, such as asset-backed securities. All currency exposure must be hedged back to pound sterling. Both pooled and segregated accounts will be considered.
Hampshire wants managers with more than £3 billion in actively managed multiasset credit strategies and, at a minimum, have a lead manager with 10 years' experience in managing global multiasset fixed-income portfolios and a track record of more than three years with the relevant money manager.
Further, management fees including all other fees and expenses should be below 0.5% of assets under management in the portfolio per annum.
The deadline for RFPs is July 16; further details are available on the TED website.
Spokesmen could not be reached for comment by press time.
