Danish fund tenders 100m euro for UNPRI compliant small caps manager

Mandate placed on IPE-Quest tender service.

A Danish pension fund has put out a mandate tender for a €100m ($134m) segregated, small cap European equity portfolio and says it will only hire fund managers that are complaint with the United Nations Principles for Responsible Investment (UNPRI) or that have similar ethical guidelines. The tender has been placed on the IPE-Quest mandate service. The fund, which is not named in the anonymous tender, says it is looking for a manager with a preferred minimum track record of 5 years. It stipulates that the fund manager should operate a fundamental, non-quantitative, long-term, bottom-up active investment philosophy. Danish pension funds have been actively seeking managers this year and many are signatories to the UNPRI, suggesting that fund manager signatories will be better placed to win the briefs. In February 2009, Responsible Investor revealed that a flurry of the country’s largest pension funds with combined assets of over €30bn had signed up to the UNPRI following initiatives by the governmentto allow PRI or UN Global Compact membership to represent a company’s new legal corporate social responsibility requirement. Joiners included the DKr200bn (€26.6bn), PFA Pension, one of the country’s biggest corporate pension fund companies, DIP, the DKr27.3bn Danish engineers pension fund and the Arkitekternes Pensionskasse fund for Danish architects, another large scheme. The pension fund for agricultural academics and veterinary surgeons (Pensionskassen for Jordbrugsakademikere og Dyrlaeger) and the fund for Danish M.A.‘s, M.Sc.‘s and Ph.D.‘s (MP Pension, Pensionskassen for Magistre og Psykologer) also signed. UNPRI signatory, Lønmodtagernes Dyrtidsfond (LD Pensions), is understood to be preparing to tender approximately 90% of its assets, worth €6bn, later this year when existing contracts expire. IPE.com said LD was looking for managers to look after a potential 10 bond and equity mandates worth between €100m and €1.5bn each.
Link to IPE-Quest