View Expired Tender

Get immediate access to tenders like the one below by subscribing now to Tenders Direct. We will set up your personalised profile and send you tender alerts direct to your mailbox as soon as they are published. You will also benefit from having access to historical tenders.

Notice Summary

Title:
UK-Leeds: China Equity Management Services
Document Ref:
TED320M219661
Document Type:
Contract Notice - Open Procedure
Published By:
Border to Coast Pensions Partnership Limited
Date Published:
05 May 2020
Deadline Date:
29 May 2020
Document Source:
Framework/DPS:
No
Alert Profile:
Labels:

Notice Abstract

Border to Coast is an incorporated company (Company Registration No 10795539), wholly owned by twelve Local Government Pension Scheme (LGPS) Administering Authorities. It is regulated by the Financial Conduct Authority (FRN: 800511). It is one of eight entities recently created nationally to meet new LGPS regulations requiring the pooling of assets across the 89 Local Government Pension Funds in England and Wales. Border to Coast has been created to meet the needs of its twelve Administering Authorities who operate the LGPS funds (the “Partner Funds”) detailed below:- - Bedfordshire Pension Fund - Cumbria Pension Fund - Durham Pension Fund - East Riding Pension Fund - Lincolnshire Pension Fund - North Yorkshire Pension Fund - Northumberland Pension Fund - South Yorkshire Pension Fund - Surrey Pension Fund - Teesside Pension Fund - Tyne and Wear Pension Fund - Warwickshire Pension Fund Border to Coast is based in central Leeds, and over the course of 2018 was focused on building resources and taking on responsibility for managing internal assets. In November 2018, it launched its first externally managed sub-fund, the UK Listed Equity Alpha Sub-Fund. In October 2019, Border to Coast launched the externally managed Global Equity Alpha Sub-Fund and in February 2020 the Sterling Investment Grade Credit Sub-Fund was launched. Over 2020 and 2021, Border to Coast expects to launch further funds based on the needs of its Partner Funds. Subsequent launches are expected between Q3 2020 and 2021, and will include an internally managed Index-Linked Bond Fund, a Multi Asset Credit Fund (MAC), an Emerging Market Equity Fund and a Regional Equities Fund.

Notice Details

CONTRACT NOTICE – NATIONAL

SERVICES

1 Authority Details

1.1

Authority Name and Address

Border to Coast Pensions Partnership Limited
5th Floor, Toronto Square,
Leeds LS1 2HJ UK
bordertocoast@mercer.com +44 1612006719
bordertocoast@mercer.com
https://www.bordertocoast.org.uk/https://www.bordertocoast.org.uk/https://www.bordertocoast.org.uk/

1.2

Address from which documentation may be obtained

Mercer Limited
Tower Place West, 50 Thames Lower Street,
London EC3R 5BU UK
Robbie Sinnott +44 1612006719
bordertocoast@mercer.com

1.3

Completed documents must be returned to:

Mercer Limited
Tower Place West, 50 Thames Lower Street,
London EC3R 5BU UK
Robbie Sinnott +44 1612006719
bordertocoast@mercer.com

2 Contract Details

2.1

Title

China Equity Management Services

2.2

Description of the goods or services required

Border to Coast is an incorporated company (Company Registration No 10795539), wholly owned by twelve Local Government Pension Scheme (LGPS) Administering Authorities. It is regulated by the Financial Conduct Authority (FRN: 800511).

It is one of eight entities recently created nationally to meet new LGPS regulations requiring the pooling of assets across the 89 Local Government Pension Funds in England and Wales.

Border to Coast has been created to meet the needs of its twelve Administering Authorities who operate the LGPS funds (the “Partner Funds”) detailed below:-

- Bedfordshire Pension Fund

- Cumbria Pension Fund

- Durham Pension Fund

- East Riding Pension Fund

- Lincolnshire Pension Fund

- North Yorkshire Pension Fund

- Northumberland Pension Fund

- South Yorkshire Pension Fund

- Surrey Pension Fund

- Teesside Pension Fund

- Tyne and Wear Pension Fund

- Warwickshire Pension Fund

Border to Coast is based in central Leeds, and over the course of 2018 was focused on building resources and taking on responsibility for managing internal assets. In November 2018, it launched its first externally managed sub-fund, the UK Listed Equity Alpha Sub-Fund. In October 2019, Border to Coast launched the externally managed Global Equity Alpha Sub-Fund and in February 2020 the Sterling Investment Grade Credit Sub-Fund was launched.

Over 2020 and 2021, Border to Coast expects to launch further funds based on the needs of its Partner Funds. Subsequent launches are expected between Q3 2020 and 2021, and will include an internally managed Index-Linked Bond Fund, a Multi Asset Credit Fund (MAC), an Emerging Market Equity Fund and a Regional Equities Fund.

2.3

Notice Coding and Classification

116 Banking
119 Financial Services
123 other Finance
1300 Any Region

2.4

Total quantity or scope of tender

Fund Description

The Border to Coast Emerging Market Equity Sub-Fund will be restructured as a hybrid of internal and externally managed equity portfolios with a three-year rolling performance target of FTSE Emerging Markets Index +1.5% pa net of fees. The Sub-Fund assets under management are expected to be around GBP 0.9bn at launch.

The majority of Sub-Fund assets (around GBP 0.6bn) will be managed in-house within an Emerging Markets ex China portfolio. Remaining fund assets will be managed externally in 1-2 China specialist mandates. Indicative mandate sizes are approximately 100m GBP to 300m GBP for the specialist sleeves. External China managers will be expected to outperform their index primarily through skilled security selection.

It is expected that each external manager will operate within a segregated account within the fund. Border to Coast will retain full custody of all assets.

Mandate Description

Border to Coast is seeking experienced China equity managers to manage up to GBP 300m of assets in its Emerging Market Equity Fund. The desired outcome is 1-2 high-conviction, unconstrained China Equity managers with a performance target in excess of FTSE Total China (or equivalent) +2-3% p.a. net of all manager fees and expenses.

We have a preference for strategies that are transparently managed, have historically exhibited a low portfolio turnover and where the majority of excess returns are driven by security selection.

3 Conditions for Participation

3.1

Minimum standards and qualification required

We welcome a broad range of tenders, however, please note the following when considering whether to apply:

- As highlighted above, the Fund will have a +1.5% p.a. target (net of manager fees). External Managers will be expected to drive alpha in the fund, and we will not consider applications where the performance target is less than FTSE Total China (or equivalent) plus 2-3% p.a. net of fees.

- The China mandate will be measured (in aggregate) against FTSE Total China. As such, our preference is for mandates submitted to have flexibility to cover all Chinese equities regardless of listing venue. Please note that, given the fledgling nature of the market for international investors and a relative lack of benchmarking consensus, we are happy to accept strategies that have changed benchmark during the last three years as long as the ability to manage All China Equities is expressed through the track record.

- In order to build the portfolio, we will need to conduct quantitative analysis on portfolio returns. As such, we are unable to accept submissions for strategies that have a track record that is less than 3 years to 31 March 2020.

- We appreciate that managers may have multiple China equity strategies that they believe may be appropriate for consideration. Where this is the case, managers may submit more than one tender response, but they should limit submissions to one strategy per distinctive style (e.g. value, profitable growth). Such multiple tender submissions by one supplier will be scored separately and the score in one shall not affect the score in others, neither adversely nor positively.

- If a systematic (i.e. quantitative) strategy is to be submitted, there should be clear evidence that the process is designed to generate alpha and can meet the minimum performance criteria: we would not welcome strategies that are simply designed to capture one or more style factors.

- Any strategy will be expected to adhere to the Border to Coast Responsible Investment policy and will need to demonstrate strong evidence of incorporating ESG factors into the investment process.

- As part of pooling, Border to Coast is seeking to achieve meaningful fee savings on behalf of its Partner Funds. As such, we will not consider tenders where the full-service fee (assuming a mandate size of GBP 250m) is higher than 0.7% pa. We expect the final fee from the selected external manager(s) to be significantly lower than this.

Please contact bordertocoast@mercer.com to receive the RFP and associated documentation.

4 Administrative Information

4.1

Type of Procedure

Single stage - Any candidate may submit a tender.

4.2

Reference number attributed to the notice by the contracting authority

N/a

4.3

Time Limits

Time-limit for receipt of completed tenders     29-05-2020  Time  16:00

4.5

Language or languages in which tenders or requests to participate can be drawn up

EN 

4.6

Tender Submission Postbox

5 Other Information

5.1

Additional Information

Please contact bordertocoast@mercer.com for the RFP and associated documentation.

(MT Ref:219661)

5.2

Additional Documentation

5.3

Publication date of this notice

 05-05-2020

Current Notes