A Nordic institution is searching for a fixed income high yield strategy with a substantial alpha target of +200 bps or more versus the relevant high yield benchmark. The strategy should be delivered in a managed account setup and will function as the sub-advisor for a white-labelled UCITS fund; hence the managed account should be able to work in a UCITS environment. The expected mandate size is USD 300-600 million.
The strategy should not be constrained to the investment universe of the benchmark but should instead be "benchmark aware". The investment universe is the global high yield markets with minimal EM exposure. Pure US strategies are also accepted.
The source of excess return could come from a combination of many sources including allocation across credit risk segments, factor/styles, geographical boundaries, industry sectors etc. and superior credit selection process. To achieve the alpha target, we expect the strategy to be highly active with clear and strong convictions in positioning within the outlined constraints.
Further product specifications
• Country / Region: Developed Markets with minimal EM exposure
• Derivatives accepted for FX hedging
• FX: All FX risk should be hedged back to DKK (when implemented)
• Vehicle: UCITS compliant managed account (for white-labelled mutual fund)
• Liquidity: Daily
• No leverage
Submission deadline: October 30, 2018.
Timeline: Estimated launch of strategy: Q2 2019
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