Tender for Danish High-Grade Bonds and Danish Short-Term Bonds
LD Pensions hereby launches two tenders for (1) Danish high-grade bonds, subject to two investment management agreements, and (2) Danish short-term bonds, subject to one investment agreement.
Mandates
Danish High-Grade Bonds: Both mandates invest primarily in Danish high-grade mortgage bonds, with the option to invest in government bonds from a few selected European countries; one of the mandates may also invest in European covered bonds.
Both mandates are actively managed, and the objective for both is to outperform the benchmark over a period of 2–3 years by 50–100 basis points per annum, without making direct duration bets.
The benchmark for one of the mandates consists of Danish mortgage bonds and Danish government bonds, whereas the benchmark for the other mandate also includes European covered bonds in addition to Danish mortgage bonds and Danish government bonds.
A tenderer may submit a tender for one of the contracts or for both contracts. The two contracts will be awarded to two different tenderers; in other words, a tenderer cannot be awarded both contracts.
Danish Short-Term Bonds: The funds invest in Danish high-yield mortgage bonds and Danish government bonds.
The objective is to outperform the benchmark over a period of 2–3 years by 25–50 basis points per annum. Direct duration bets are not permitted. The benchmark comprises Danish mortgage bonds and Danish government bonds.
Procedure
The tender for the two Investment Management Agreements for Danish high-grade bonds will be conducted as a single tender, whilst the Investment Management Agreement for Danish short-term bonds will be conducted as a separate tender.
The procedure for both tenders is an open EU procurement process, and the award criterion is the most economically advantageous tender.
Information about the tender
The contract notices are published in the Official Journal of the European Union/TED (Tender Electronic Daily)
Danish High-Grade Bonds: contract notice 2020/S 083-196502
Danish Short-Term Bonds: contract notice 2020/S 083-196508
Tender documents and information about the tender are available on EU-Supply:
All communication regarding the tender will take place via EU-supply.com. LD Pensions will not communicate directly with any manager regarding this tender process.
Tender Emerging Markets Active High Conviction Equities
LD Pensions hereby launches the tender for an Investment Management Agreement for a Global Emerging Markets High Conviction Equities Mandate.
Mandates
The mandate is a Global Emerging Markets High Conviction Equities Mandate, which invests actively, fundamentally and on a long-only basis in a concentrated portfolio of listed global emerging market equities of all sizes, in a relatively beta-neutral manner, with no extreme biases towards, for example, momentum, deep value, small-cap, high-growth or low-volatility. The investment objective is to generate true long-term alpha adjusted for academically tested factors (a high level of idiosyncratic risk). The expected outperformance relative to the MSCI Emerging Markets benchmark over a full market cycle is at least 2 percentage points per annum. The maximum number of issuers (shares) in the portfolio is 70, and the minimum is 30. The target total return is above 4 per cent and the target Active Share is above 90 per cent.
The investment process must be firmly rooted in a strong, sensible and well-supported investment philosophy. The investment strategy is long-term, and turnover is low. A fundamental, holistic company evaluation and monitoring process is required, with ESG fully integrated, so that ESG-related risks and opportunities are analysed and taken into account in the investment process. Investment decisions are based on a deep understanding of companies within the investment universe, and their current and expected future operating environments, including the macroeconomic and political environment. The approach and process strike a sensible balance between bottom-up and top-down dynamics. Interaction and engagement with companies are expected. Portfolio construction is benchmark-agnostic and conviction-based, whilst still paying attention to diversification.
A high degree of alignment of interests between portfolio managers and clients is expected.
Procedure
The tender process consists of two stages. In the first stage, applicants are invited to take part in a pre-qualification process. Based on the pre-qualification responses submitted by the applicants, LD Pensions will select up to eight applicants who will be permitted to take part in the second stage, the tender process.
Please note that each applicant/tenderer may submit only one product.
Information about the tender
The contract notice is published in the Official Journal of the European Union/TED (Tender Electronic Daily) – contract notice 2020/S 067-159633.
Tender documents and information about the tender are available on EU-supply. All communication regarding the tender will take place via EU-supply.com. LD Pensions will not communicate directly with any manager regarding this tender process.
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