Lonmodtagernes Dyrtidsfond, Frederiksberg, Denmark, is searching for a manager to run a 3 billion Danish kroner ($453 million) global developed markets high-conviction equities allocation.
The 35 billion kroner pension fund is known as LD Pensions.
The size of the allocation has not yet been determined, said a notice on European procurement website Tenders Electronic Daily.
The allocation has a different objective to what LD Pensions currently has in its developed market strategies as it is more concentrated and will have a higher tracking error, said Kristoffer Fabricius Birch, head of equities at the fund. The allocation will be funded from existing allocations, he said.
"Our current manager on developed markets equities is MFS. The existing strategy is not able to participate due to the number of stocks in the portfolio. But if MFS have a strategy that fits our requirements, they are more than welcome to participate," said Mr. Birch.The pension fund wants managers to run the allocation with "no extreme biases" to factors. Environmental, social and governance issues should be fully integrated in the investment process, as well as LD Pensions' existing exclusion list.
The contract will run for four years, with the potential for three, 12-month extension periods.
Proposals are due by April 14.
Further information, allocation and manager criteria are available in the notice.
A decision is expected late in the summer or early autumn, "but it is difficult to estimate these days," Mr. Birch added.
