A large U.S. financial institution is searching for an Absolute Return strategy. The allocation is expected to be USD 30-70mm (the allocation can increase depending on performance). The strategy will form part of a global multi-strategy 40 Act mutual fund.
Search criteria
- Investment: Preferably Global Macro, CTA, and event-driven strategies with a correlation to fixed income close to zero and an equity beta lower than 0.3.
- Target: SOFR + 2-4% net.
- Max drawdown: Less than -15%.
- Track record: Minimum 4 years of the proposed strategy.
- Minimum strategy AUM: $500mm.
- Liquidity: Preferably monthly. Quarterly is accepted. Investments should be liquid assets only.
- Reporting: Monthly/quarterly review of performance and attribution across strategies.
- Fee structure: A flat fee of 70bps or lower. No performance fees (hard restriction)
- Investment vehicle: Separately managed account. The fund manager should have experience sub-advising mutual funds.
Process outline
The RFP will be used as the first screen (1st round). Managers qualifying for the 2nd round will be asked to answer additional questions and provide further information. A final shortlist will follow from the 2nd round.
Performance data
USD, Gross of fees
Deadline
September 20, 2023 (Cut-off: Midnight CET, Expiry date inclusive)
Reverse solicitation
This search constitutes a reverse solicitation process as described under AIFMD, MiFID II and MiFIR whereby the investor (using GFS as an agent) on its own (exclusive) initiative and with the intention of investing in (or initially receiving information regarding) AIF(s) or its AIFM (or an intermediary acting on their behalf), investment services or activities, or its financial instruments. GFS has documentation (i.e., “paper trail”) if requested by authorities.
For more information: www.globalfundsearch.com
Title Pic: donfiores—shutterstock.com
