Pension Fund Investment – Global High Yield Bond
The Pension Fund of the London Borough of Newham invites proposals for the management of an investment in Global High Yield Bonds through a UCITS pooled fund vehicle.
United Kingdom-London: Pension investment services
2016/S 231-421021
Contract notice
Services
Directive 2014/24/EU
Section I: Contracting authority
I.1)Name and addresses
Newham Dockside 1000, Dockside road
London
E16 2QU
United Kingdom
Contact person: Rakesh Rajan
E-mail: Rakesh.Rajan@oneSource.co.uk
NUTS code: UKI12
I.3)Communication
Clareville House, 26-27 Oxendon street
London
SW1Y 4EL
United Kingdom
Contact person: Gwenaelle Rose
Telephone: +44 2077478619
E-mail: grose@bfinance.com
NUTS code: UKI11
I.4)Type of the contracting authority
I.5)Main activity
Section II: Object
II.1.1)Title:
Pension fund investment – Global High Yield Bond.
II.1.2)Main CPV code
II.1.3)Type of contract
II.1.4)Short description:
The Pension Fund of the London Borough of Newham invites proposals for the management of an investment in Global High Yield Bonds through a UCITS pooled fund vehicle.
The Pension Fund of the London Borough of Newham does not wish to be contacted during the tender process. Please contact bfinance for any queries regarding the tender.
II.1.6)Information about lots
II.2.3)Place of performance
II.2.4)Description of the procurement:
Asset Class: Global High Yield Bonds
Size of mandate: Approx. 60 000 000 GBP to be invested with 1 manager.
Investment Vehicle:
— UCITS Pooled funds only. Proposals for a segregated account will not be considered
— The client does not want to hold more than 20 % of a fund’s assets, i.e. min. 240 000 000 GBP fund AUM.
— GBP hedged share class preferred. Preference also for an Accumulative share class but distributive share class will also be considered.
Benchmark: Participating managers may propose the most appropriate benchmark for their strategy. It will preferably be a Global High Yield Bond index from either Bofa Merrill Lynch or Barclays.
Investment Objective: 1-2 % out-performance above the relevant benchmark, with a focus on capital preservation and managing default risk.
Investment Constraints:
— Portfolio mainly invested in high yield, rated bonds of global corporate issuers.
— Global orientation is a must (no pure USD strategies). The portfolio should demonstrate the ability to invest in non USD denominated bonds.
— Max 10 % in investment grade rated bonds.
— Max 20 % in CCC rated bonds.
— Max 20 % off-benchmark investments.
— No specific duration limits, but large deviations from benchmark level would need to be justified.
— Derivatives allowed only for hedging purposes and risk management. The use of derivatives for portfolio leverage will not be accepted.
— Borrowing or short selling is not permitted.
II.2.5)Award criteria
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
It is intended that the contract will continue in force until such time as is determined in accordance with the provisions contained in the contract.
II.2.10)Information about variants
II.2.11)Information about options
II.2.13)Information about European Union funds
II.2.14)Additional information
See the procurement documents
The procurement documents can be obtained on the bfinance website https://impp.bfinance.com/ Alternatively you may contact bfinance using the email address newhamHY@bfinance.com
The Pension Fund of the London Borough of Newham does not wish to be contacted during the tender process.
Section III: Legal, economic, financial and technical information
III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
See the procurement documents.
III.1.2)Economic and financial standing
III.1.3)Technical and professional ability
III.2.1)Information about a particular profession
An institution authorised to accept deposits in the United Kingdom. Providers must be authorised under the Financial Services Act 1986 or any equivalent legislation in any EU member state. Providers must satisfy the requirements of the Superannuation Act 1972 and the Local Government Pension Scheme (Management and Investment of Funds) regulations 1998 (as amended).
III.2.2)Contract performance conditions:
See the procurement documents.
Section IV: Procedure
IV.1.1)Type of procedure
IV.1.8)Information about the Government Procurement Agreement (GPA)
IV.2.2)Time limit for receipt of tenders or requests to participate
IV.2.4)Languages in which tenders or requests to participate may be submitted:
IV.2.6)Minimum time frame during which the tenderer must maintain the tender
IV.2.7)Conditions for opening of tenders
Section VI: Complementary information
VI.1)Information about recurrence
VI.4.1)Review body
London
United Kingdom
VI.4.3)Review procedure
As detailed in procurement documents.
VI.5)Date of dispatch of this notice:
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