The Italian pension fund for the chemical sector, Fonchim, is tendering five mandates worth €2.71bn to invest assets in fixed income and equity via its sub-funds ‘Stabilità’ and ‘Crescita’.
The scheme is handing out two mandates under Stabilità: one investing in pan-European government bonds worth an initial amount of over €650m issued by member states of the Organization for Economic Cooperation and Development (OECD), and bonds issued by international organisations; and a second mandate investing in global government bonds worth approximately €750m.
It is also tendering an active global balanced mandate to invest in European government bonds, inflation-linked, US Treasuries, and European and global equities for its ‘Stabilità’ sub-fund, worth approximately €845m.
A further passive global balanced portfolio for its ‘Crescita’ option, worth €470m, will invest in government and corporate bonds, and European, global and emerging market equities, according to the scheme’s tender documents.
Fonchim will reward the asset manager appointed to run the active global balanced mandate with a 5% fee, as an incentive applied only in the event of a positive, additional return achieved by the portfolio against the benchmark, deducting the management fee, calculated on the entire duration of the mandate, it added.
In the event of a negative benchmark return, the fee will be applied exclusively on the additional return of the portfolio compared to a benchmark return conventionally set at zero, the document disclosed.
Fonchim is looking for asset managers that have assets under management equal to at least €10bn, it added. The deadline for applications has been set for 31 October.
The pension fund spilts its total assets worth €8.95bn through three sub-funds – ‘Garantito’, ‘Stabilità’ and ‘Crescita’.
Italian bank’s scheme looks for bonds, equities managers
Separately, the pension fund for the former employees of the Banco Popolare group, which merged with another bank — Banca Popolare di Milano (BMP) — is looking for asset managers for bonds and equities investments worth €690m.
The scheme is tendering two asset managers to handle four mandates to invest €600m in bonds, and two asset managers to run four mandates to invest €360m in equities.
The deadline for applications is 14 October.
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