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 the applicant provides the needed information and complies with the formal requirements.
A reference is a description of a current or recent client mandate, which is relevant to, and demonstrates the applicant’s ability to fulfil the requirements of, this global developed markets high conviction equities tender. To be Relevant the reference client’s investment guidelines are comparable to those of LD Pensions’, and in particular:
— the process is fundamental, high conviction, stock selection, with integrated ESG analysis. Portfolio construction is benchmark agnostic, and there are no extreme biases. References which do not match this are not considered relevant;
— the geographical scope: in order to be relevant, the geographical scope of the reference must be global developed markets (with a maximum of 10 % invested in countries outside of MSCI global developed markets countries). All other strategies, such as regional, or all-country strategies are not considered relevant;
— references where the number of stocks was above 60 on average for the last 3 calendar years are not considered relevant. References where the number of stocks at any point in time during the last 3 calendar years was above 65, are not considered relevant;
— tracking error and active share must be as described in the investment guidelines for the reference to be relevant;
— the size scope is all cap. Pure small-midcap references are not considered relevant;
— the mandate is long only. A reference which does not concern a long-only strategy is not considered relevant;
— the mandate is a fully invested mandate. References with materially higher cash weights than the restriction in the investment guidelines, are not considered relevant;
— the mandate is long-term. References for strategies with short investment horizons, and/or a high turnover (high being an average turnover for the last 3 calendar years of above 50 %), are 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 developed markets high conviction strategy, in its entirety (since 2014 or inception if later). Furthermore, the applicant must have at least a 5-year composite for the strategy as of 31 December 2019 and the track record must represent current team capabilities and strategy.
Please pay close attention to relevance as references, which are not considered relevant, will receive a score of zero for the entire Reference. Furthermore, references, which do not address and describe the criteria for relevance, are 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, defined as the monthly live 5-year composite returns of a global developed markets high conviction equities strategy (as of December 31, 2019).
A score will be given for long-term 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.