UK-Bristol: pension investment services
The investment management of a global bond portfolio with an estimated value of between 10 000 000 GBP to 150 000 000 GBP (or between 11 000 000 EUR to 167 000 000 EUR).
It is anticipated that the appointment and funding will be for one or more managers with funding of the manager(s) subject to our investment strategy review and strategic asset allocation.
The portfolio (preferably segregated but a pooled fund may be considered) is to be actively managed to achieve excess returns from global bonds preferably on a basic maintenance and performance-related fee basis. One or more investment philosophy, process or product may be used. We expect the majority of the portfolio to be invested in fixed rate investment grade bonds denominated in the major currencies, to achieve the mandate objectives.
The financial out-performance target for the fund performance net of fees is to exceed a suitable global bond benchmark return by a minimum of +1.0 per cent per annum on a rolling three year basis within an agreed maximum risk budget. This may be adjusted lower to less than +1per cent if the benefit is justified.
In addition to mainstream bond managers with a strong and credible process we are also looking for bond managers who incorporate and integrate financially material environmental, social and governance (ESG) criteria in line with best practice sustainable environmentally responsible investment. While integration of ESG issues are important to us we are also keen to hear from all global bond fund managers able to offer excellent returns.
In terms of integrating ESG factors, we are open to a broad range of product types and or combinations of bond products including green or sustainable bond products. Although in no way limited to, these could include traditional bond mandate with an ESG overview, allocations to green bonds, climate change bonds, supranational and agency bonds, weather catastrophe bonds, and other environmental or sustainability bond products. Our preference is for positive bond selection using financial and sustainable criteria rather than negative screening.
We are open to the use of either in-house or external company research and/or partnering with third parties on the integration of ESG issues into the managers investment strategy. Other innovative approaches may also be considered.
We are signatories of the UN Principles for Responsible investment (UNPRI) and we would expect the manager to be a member of or be willing to participate in the UNPRI and or support other global initiatives such as UN Environmental Programme - Finance Institutions (UNEP - FI) and or the UN Global Compact.
We are open to proposals for new concepts, strategies and teams. We will allow proposals where certain aspects may be contingent on appointment.
The appointed investment manager will be expected to manage the assets in accordance with the Local Government Pension Scheme regulations and the Agency Statement of Investment Principles, Corporate Governance and Environmental Overlay strategies and reporting requirements. For further details please see our website www//environment-agency.gov.uk/pensions.
