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 email@example.com to receive the RFP and associated documentation.