LD Pensions’ tender for an Agreement concerning Global Developed Markets High Conviction Equities
LD Pensions hereby initiates the tender for an Investment Management Agreement for a Global Developed Markets High Conviction Equities Mandate, investing actively, fundamentally, and long only in a concentrated portfolio of listed global developed market equities of all sizes, in a relatively beta-neutral fashion, with no extreme biases to e.g. 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 vs. the MSCI World benchmark over a full market cycle is at least 2 %-points p.a. The maximum number of issuers (stocks) in the portfolio is 60, target TE is above 4% and target Active Share is above 90%.
The investment process must be firmly rooted in a strong, sensible, well-supported investment philosophy. The investment strategy is long term, and turnover low. A fundamental, holistic company evaluation and monitoring process is required, with ESG fully integrated, such that ESG related risks and opportunities are analysed and considered in the investment process. Investment decisions are based on a deep understanding of companies in the investment universe, and their current and expected future operating environments. Interaction and engagement with companies is expected. Portfolio construction is benchmark agnostic, conviction based, albeit with attention to diversification.
A high degree of alignment of interests between portfolio managers and clients is expected.
The tender process is two-staged. In the first stage, Applicants are invited to participate in a prequalification process. Based on the prequalification replies submitted by the Applicants, LD Pensions will select up to six Applicants who will be allowed to participate in the second stage, the tender process.
Please be advised, that each Applicant/Tenderer can submit one Product only.