Objektive kriterier for udvælgelse af det begrænsede antal ansøgere
Each Applicant is required to submit one Relevant client Reference. LD Pensions recommends all Applicants to use Appendix 5a/5b to ensure that all information is supplied and compliant.
A Reference is a description of a current or recent client mandate, which is Relevant to this Global Emerging Markets High Conviction Equities tender, and demonstrates the Applicant’s ability to fulfil the requirements. To be Relevant the Reference Client’s Investment Guidelines must be comparable to those of LD Pensions’, in particular
- Process: Fundamental, high conviction, stock selection, ESG analysis integrated. Portfolio construction is benchmark agnostic, and there are no extreme biases. A Reference which does not match this is not considered Relevant.
- The geographical scope of the Reference must be Global EMs (with a maximum of 10 % invested in countries outside of MSCI Global EM countries). All other strategies, such as regional/country strategies, or strategies concerning Developed Market domiciled companies with high EM exposures, are not considered Relevant.
- If the number of stocks was above 70 or below 30 on average for the last 3 calendar years, the Reference is not considered Relevant. If the number of stocks at any point in time during the last three calendar years was above 80 or below 25, the Reference is not considered Relevant.
- Tracking error and Active share targets must roughly similar to those of the Investment Guidelines for the Reference to be Relevant.
- The size scope is all cap. A pure small-midcap Reference is not considered Relevant.
- A Reference which does not concern a long-only strategy is not considered Relevant.
- A Reference with materially higher cash weight than the restriction in the Investment Guidelines, is not considered Relevant.
- A Reference for a strategy with a short investment horizon, and/or a high turnover (high being an average turnover for the last 3 calendar years of above 50 %), is not considered Relevant.
The Reference description should also include a description of the strategy (philosophy, process, objectives) and guidelines (incl. client directed policies, such as an ESG exclusion list).
In order to be relevant, the Reference clients’ track record must be included in the Applicant’s composite for the Global Emerging Markets High Conviction strategy, in its entirety (since 2014 or inception if later). Furthermore, the Applicant must have at least a 63 month composite for the strategy as of 31 March 2020, and the track record must represent current team capabilities and strategy.
Please pay close attention to Relevance: A Reference, which is not considered Relevant, will receive a score of zero for the entire Reference. Furthermore, a Reference, which does not address and describe the criteria for Relevance, is not considered Relevant.
The structure of the Reference is as follows:
Part 1
(1) Client resemblance to LD Pensions;
(2) Project characteristics resemblance to LD Pensions;
(3) Firm capabilities and experience; A detailed description in essay form (max 500 words), of the services delivered to the Reference client, which reflects the Applicant’s capabilities and experience managing a mandate Relevant to LD Pensions’ Investment Guidelines.
Part 2
Evaluation of Results. Results are defined as the monthly returns of the composite track record from December 31, 2014 through 31 March 2020, for a Global Emerging Markets High Conviction Equity strategy that includes the Reference client’s track record.
A score will be given for long-term significant positive robust alpha generation, adjusted for style betas. This score will be adjusted if the composite characteristics are not of sufficient quality or representative.
Part 3
Reference Client anonymity or affiliation.
Please find a more detailed description of the above, as well as LD Pensions’ preferences, in Section VI (3), and a complete description in the Tender Specifications.