LD Pensions’ tender for an Agreement concerning High Grade European Asset Backed Securities
()LD Pensions hereby initiates the tender for an Investment Management Agreement for a High Grade European ABS (Asset Backed Securities).
The Product/mandate in the Agreement invests in Investment grade liquid (primarily European) ABS including but not limited to the following major securitised sectors: residential mortgage, credit card receivables, consumer and commercial business lending, collateralised loans obligations (leverage loans and small and medium enterprises), autos, etc. The mandate should exclude commercial mortgage backed securities (CMBS) and esoteric ABS sectors i.e. shipping containers, aircraft, royalties etc. The mandate should only purchase asset-backed securities, not “unsecuritised” assets (i.e. not whole loans).
The investment objective is to deliver a stable return stream of EURIBOR + 150 bps net of currency hedge over a business cycle. Additionally, the manager shall have regard to LD Pensions’ objective of achieving an excess return over European Investment Grade Corporates as measured by ICE BofAML Euro Corporate Index (Bloomberg ticker ER00) excess return over swaps (duration hedged).