Fondo Arco, the Italian pension funds for workers employed in the wood, furniture, forestry, brick and concrete sectors, is searching for four managers for its €403m Bilanciato Prudente sub-fund.
The €484m scheme launched the tender shortly after releasing its newly approved 2013 balance sheet, which saw a 12% increase in assets under management, from around €424m at the end of 2012 to €474m at the end of last year.
Fondo Arco offers five-year mandates for a mixed equity, government bond and corporate bond portfolio of assets, which it forecasts will increase by €20m during 2014, thanks to contributions from current members.
The tender was launched as the previous mandates for the sub-fund, held by Credit Suisse, Unipol Assicurazioni, JP Morgan Asset Management, Eurizon Capital and Natixis Asset Management, came to the end of their term.
The scheme sets a benchmark for the sub-fund structured as follows:
- 25% JPM Gov. Bond Emu IG 1-3
- 25% JPM Gov. Bond Emu IG All maturities
- 10% IBbox Eur Liquid Corporates 100
- 10% BofA ML Direct Government Inflation Linked
- 15% MSCI TR NET EMU LOCAL
- 15% MSCI Kokusai (World ex Japan)
Fondo Arco also specifies that the equity portion will vary from a minimum of 20% to a maximum of 40% of the portfolio.
The maximum investment in equity collective investment schemes will be 15%, while the maximum corporate bond exposure will be 15%.
Foreign exchange risk will be actively managed and set at a maximum of 25%.
Tracking error volatility will be limited to 4% per year.
The scheme adds that prospective managers will have to comply with its guidelines for ESG investment approved last year.
The deadline for applications is 26 May.
No comments yet