Tender of two global indexed equity mandates

Tender of two global indexed equity mandates (PDF)

Application form (Excel)

Questions & Answers

Question: Would the Danish National Research Foundation be interested in enhanced solutions or alternative beta strategies?

Answer: No

Question: We have one strategy that meets the minimum 3-year track record, however the ESG version has a shorter track record. Can we position them alongside the longer one as it is identical except for ESG policy?

Answer: Yes. Please provide track records for both strategies with a clear indication of which is the ESG version and which is not.

Question: How would the Foundation want to influence the ESG policy in a fund?

Answer: The Danish National Research Foundation would be able to provide a restricted list or follow (not influence) the fund’s ESG policy.

Question: Is the search for a developed market portfolio (MSCI World Index) or is there any scope for allocation to emerging markets?

Answer: The Danish National Research Foundation is searching for a pure developed market portfolio, where the benchmark is MSCI World Index.

Question: Would a synthetic fund solution (possibly with a SRI screen) that perfectly tracks a suitable index be considered?

Answer: The Danish National Foundation will also consider a synthetic fund solution.

Question: Will each portfolio approximately remain the same size over time?

Answer: The Danish National Research Foundation finances basic research, so the portfolio’s value is expected to diminish over time.

Question: Does the Danish National Research Foundation have an existing fund, where the potential portfolio manager will be a sub-advisor?

Answer: No

Question: Will the Danish National Research Foundation evaluate a MSCI ACWI benchmarked track record in recognition that we would manage a MSCI World benchmarked portfolio?

Answer: No

Question: Can the SRI restricted list be found on the web site, our can you supply it? If not, can you provide the number of stocks?

Answer: The restricted list is not on the website and the Danish National Research Foundation does not normally disclose the list.

Question: Which is the preferred denomination currency? If DKK, is that compulsory or just preferred.

Answer: The preferred currency is DKK, but this is not compulsory.

Question: Can the Danish National Research Foundation provide clarification with respect to ‘Kapitalforening’?

Answer: As stated in the tender the entity must fulfil the requirements set out in Sections 162 a and 162 b of the Danish Financial Business Act.

Question: Can the mandate be a segregated account using the Danish National Research Foundation’s custodian and which custodian bank does the foundation use?

Answer: As stated in the tender: “An investment agreement regarding investment in a UCITS, a capital association (in Danish: Kapitalforening) or similar legal entity which fulfils the requirements set out in Sections 162 a and 162 b of the Danish Financial Business Act (Lov om finansiel virksomhed) will be concluded.” The custodian bank cannot be disclosed.

Question: Is it possible to combine the two portfolios into one account?

Answer: As stated in the tender: “Due to regulatory placement limitations, the mandates cannot be aggregated in one legal entity, and cannot in aggregate constitute one exposure against any one group of affiliated entities.”

Question: Would the Danish National Research Fund accept a strategy that seeks to reduce exposure to companies with high carbon emissions?

Answer: No

Question: Can the Danish National Research Foundation please clarify the requirement “the mandates cannot be aggregated in one legal entity, and cannot in aggregate constitute one exposure against any one group of affiliated entities”?

Answer: The Danish National Research Foundation will not provide advice on the applicable law. Bidders should obtain independent legal advice if necessary.

Question: Are there any particularly unusual/unique requirements under the Danish Financial Business Act the bidder should be aware of and can you possibly provide a copy of this Act in English for our reference?

Answer: The Danish National Research Foundation will not provide advice on the applicable law. Bidders should obtain independent legal advice if necessary.



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