ITALY – The €132.3m pension fund for Fiat’s middle-management, Fondo Pensione Quadri e Capi Fiat, is looking for an established insurance company to provide annuities for its retiring members.
The scheme, known as FPQ, started managing €46.6m of members’ contributions in 2000.
Assisted by consultant Prometeia in 2002, it selected ABN Amro for a short-term bond mandate, Pioneer for a medium-long term bond mandate, Pimco for a high-yield bond mandate and Morgan Stanley for equities.
The fund has recently offered its members three different investment profiles to accommodate their attitude to risk.
FPQ is now looking for an insurance company with at least an ‘A’ rating from agencies such as Standard & Poor’s. They would offer life insurance to cater for the first few retiring members, who are due to exchange their pension pot for an annuity, the fund’s co-director, Antonella Baroncelli, told IPE. The contract would last three years.
Baroncelli said the appointment of an insurance company will not bring any change to the asset management team.
The ideal candidate is an ‘A’ rated EU insurance company, with at least a branch in Italy, abiding to the standards set by insurance regulator, ISVAP. The fund requires at least €50m worth of premiums in the life-insurance field in 2003.
The annuities are required a minimum 2.5% return and in addition the selected candidate must acquire “ data and parameters relative to the rules and structure of the fund”, the request for tenders said.
Tenders, which must reach the fund by April 29, must be filled in Italian. FPQ expects to make the appointment by the end of May.
Andrea Scaffidi of Mefop, the association for the development of the pension funds market, will act as consultant. Further information: www.fondoquadrifiat.it.