Laborfonds, the Italian pension fund for the employees in the Trentino-Alto Adige/Südtirol region, is tendering eight mandates for bonds and equities worth €2.8bn.
The scheme is seeking one manager to invest €700m through its sub-fund ‘Linea Bilanciata’ as a semi-passive global bond mandate, it said. It is also tendering two active balanced bond mandates, for a total initial amount estimated at approximately €1.4bn (€700m for each mandate).
Laborfonds is also handing out two active global equity mandates to invest through its ‘Linea Bilanciata’, amounting initially to approximately €420m (€210m for each mandate), it announced.
The investment policy for the ‘Linea Bilanciata’ sub-fund is based on a so-called ‘core-satellite’ model, splitting allocations to equities, bonds and alternatives.
Core investments are conducted through an active or a passive approach, and delegated to asset managers, equal to at least 90% of total assets, while under the ‘satellite’ label are directly managed investments by Laborfonds in closed-end Alternative Investment Funds (AIFs).
Assets in the ‘Linea Bilanciata’ sub-fund are currently managed by Eurizon Capital, which holds a specialised passive mandate in government bonds, while BlackRock manages an active multi-asset mandate. Direct investments in AIFs amount to 10% of total assets in the sub-fund.
In the last 20 years, the ‘Linea Bilanciata’ returned 3.64% per year, and 4.42% this year until August, a performance above the revaluation rate of the fund’s severance pay (Trattamento di Fine Rapporto, TFR), the scheme said.
Laborfonds is also looking for one manager to invest an initial amount of around €100m through its ‘Linea Dinamica’ sub-fund as a semi-passive global bond mandate.
It is tendering a further two active global equity mandates worth €200m (€100m each) also through its ‘Linea Dinamica’, which invests mainly in equities. The current manager is BlackRock.
The scheme applies an “incentive fee” of 10% on active mandates, only in the event of a positive, additional return compared to the benchmark, after deducting the management fee, over the entire duration of the mandate, and based on assets managed, it added.
The deadline for applications has been set for 8 November.
The pension scheme invests its assets via four sub-funds – ‘Linea Garantita’, ‘Linea Prudente Etica’, ‘Linea Bilanciata’ and ‘Linea Dinamica’ – holding total assets of approximately €4bn.
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