Pension AE Tender Published: Investment Management Providers for the Investment of the Automatic Enrolment Retirement Savings System

Annex 1: AERSS Investment Management Provider Procurement Specifications
Item
Fund A
Fund B
Fund C
1Fund focus
Lower risk retirement savings arrangement​
Medium risk retirement savings arrangement​
Higher risk retirement savings arrangement​
2Fund type
UCITS​
3Design characteristics
A benchmark-aware approach to strategic asset allocation, unitised, open-ended, daily dealing​
4Base currency
EURO​
5Domicile
Ireland​
6Management Approach
Passive Management​
7Risk Levels
1 or 2 per Section 69 of the AE Act (e.g. ESMA)​
3 or 4 per Section 69 of the AE Act (e.g. ESMA)​
5, 6 or 7 per Section 69 of the AE Act (e.g. ESMA)​
8Benchmark
To be proposed by Tenderer​
To be proposed by Tenderer​
To be proposed by Tenderer​
9Hedging
Permitted​
10Date of Inception
(a) The fund's date of inception must be at least three years prior to the tender submission date
OR
(b) In the event that the Tenderer proposes to establish a new fund specifically for AE, they must provide details of any existing fund/strategy being replicated. This includes, but is not limited to, the existing fund/strategy's date of inception (at least 3 years prior to the tender submission date), performance history, investment strategy and key characteristics to demonstrate alignment and comparability with the proposed AE-specific fund​
11Permitted active risk relative to the Fund’s benchmark
Maximum 2%​
12Investment objective
To replicate the performance of the benchmarks proposed as closely as possible, in the interest of AE Participants, ensuring low tracking error and cost efficiency​
13Investment strategy
Provide passively managed UCITS in line with the specified risk ratings, the investment principles set out at Section 4.5 of Annex 2 and benchmarks proposed suitable for AE Participants​
14Share Class
Accumulating​
15Sustainability reporting
SFDR article 6, 8 or 9​
SFDR article 8 or 9​
SFDR article 8 or 9​
16Stock Lending
Permitted in line with EU regulation Securities
Financing Transactions Regulation (SFTR)​
17Investment in other funds
Not Permitted​
18Investment limits
UCITS regulations dictates the investment limits​
19Leverage
UCITS regulations dictates the leveraging restrictions​
20DerivativesPermitted in line with the AE Act 2024 and as per UCITS regulations
21Reporting
Daily unit prices and unit positions sent to the Managed Service Provider by an agreed daily deadline​
22AMC
Maximum of 10bps on AUM​
 
6. Management Approach: Passive Management

I'd have thought it would be Actively Managed if the 3 investment managers chosen are deciding the mix that goes into the Low, Medium and High. Passive to me is low cost index funds and I'd be surprised if they offer those.

22. AMC 0.1%