Compenswiss, Geneva, is looking for an active emerging markets bond manager to manage $500 million allocation, according to the 37 billion Swiss franc ($37.4 billion) pension fund's website.
The social security fund, which provides first-pillar pension benefits to all Swiss citizens, seeks to add a manager that can outperform the benchmark by an average of 100 basis points net of all fees per year over four years. The maximum tracking error target is 5%, the fund said.
The selected manager will offer local currency bond strategies. The fund will accept a limited exposure to quasi-sovereign bonds, corporate bonds and non-local currency bonds.
Compenswiss has 38% of its allocation in foreign currency bonds. Its emerging market bond allocation could not be learned.
The RFP is available on the pension fund’s website. Proposals are due by Oct.10. The fund will evaluate proposals by Nov. 1.