Global Credit – PGSC11
Global Credit – Assisted Search PGSC11
Deadline: Thursday 25th June
A UK pension scheme is running an assisted search for a global credit manager for their DB scheme. In the long term, they are looking for a manager to run either a segregated credit portfolio against the Bloomberg Barclays Global Aggregate Corporate index (hedged to GBP) but may be interested in accessing the strategy via a Pooled Fund with the same/similar benchmark initially. The manager is expected to be open to in-specie transactions to Pooled Fund, and Pooled Fund to Segregated account.
All applicants will be required to complete additional information in an excel sheet that Natasha Fletcher will send to you when you apply to her with your fund name; this is in addition to our standard CAMRADATA database entry requirements. This is due to the requirements for this search being very specific.
This part of the search refers to the possible pooled solution you may have.
If you would like to put a vehicle, or a number of vehicles, forward for this search then you must contact me with the name of the vehicle that you would like to propose and I will then send you the spreadsheet to fill in. All funds being proposed must be listed in CAMRADATA Live and returns must be up to date i.e. to 31st March 2020.
Search Requirements
| Deadline | Thursday 25th June 2020 |
Asset Class | Global Credit |
Benchmark | Bloomberg Barclays Global Aggregate Corporate index (hedged to GBP) |
Currency | GBP hedged |
Performance Target | 0.5-1.5% |
Size of Potential Mandate | £350m growing to c£750m in 1-2 years |
| Track Record | Minimum 5 year track record required |
Tracking Error | 1.5-2.5% |
| Other Requirements | We would like opportunistic exposure to securitised credit, capped at 15%Max non-IG exposure of 20%ESG exclusions for companies involved in: – tobacco manufacturing; – thermal Coal mining (the mining of coal to be burned to create electricity), specifically where this makes up more than 25% of revenues; – cluster Munitions; – white Phosphorus; and – landmines. – We will need you to confirm that the vehicle you are proposing conforms to all of these criteria please. |
Given they are suggesting an allocation of up to 15% in securitised credit, further information on capabilities in securitised credit is required as below and these responses can be made on the attached excel sheet that Natasha Fletcher will send to you:
- assets under management;
- details of strategies currently run;
- track records for these strategies (since inception); and
- the relevant investment team’s organisational chart with experience and tenure;
- details on current segregated mandates (AUM, no. of accounts, benchmarks, inception dates, excess return, tracking error, IR)
The client requires a performance fee % proposal at mandate level, assuming a 5bps management fee, performance hurdle of benchmark +100bps, with annual performance fee crystallisation and fee cap of 100bps for this mandate. They will be filtering on this metric at the initial stage.
To submit a fund please email natasha.fletcher@camradata.com