Lonmodtagernes Dyrtidsfond, Frederiksberg, Denmark, is searching for a manager to run an allocation of high-grade European asset-backed securities.
The expected size of the allocation is 1.25 billion Danish kroner ($202 million), but this value may change.
The portfolio may include residential mortgages, consumer and commercial business lending and collateralized loan obligations. Managers must exclude commercial mortgage-backed securities and esoteric ABS sectors such as shipping containers and aircraft.
The contract will last for four years with three possible one-year extensions.
Proposals are due March 10. Further details are available on public procurement website EU Supply.
Separately, the 32 billion kroner pension fund, known as LD Pensions, hired Federated Hermes to run an emerging markets equities allocation.
The allocation will start at about 200 million kroner, said Kristoffer Birch, head of equities, in an email.
When a search was launched in April, the pension fund was looking for a manager to run about €100 million ($120 million).
However, the amount changed due to a payout from its "holiday allowance fund," Mr. Birch said.
In addition, Federated Hermes' integration of environmental, social and governance factors was welcomed by LD Pensions.
"ESG is one of the great risks of the time, but must also be seen as an opportunity," Mr. Birch said in a news release. "Emerging markets companies are often lagging behind in the ESG area compared to companies in the developed markets. So an integration of ESG risks and opportunities into the decisions of the companies and a follow-up dialogue is extremely important in these markets. That is why we are also pleased with Hermes' great focus and experience within ESG."
