ITALY - Italian carmaker Fiat says it has put out to tender three mandates totalling 80 million euros for its pension fund for middle managers which is currently managed by Romagest and Morgan Stanley.
The company told IPE Newsline that the three mandates will comprise a 100% bond fund, a fixed-income balanced fund which will be 60%-80% invested in bonds and the rest in equity, and an equity balanced fund which will have between 40% and 60% invested in equities and the remainder in bonds. Fiat is remaining tight-lipped about the exact size of each mandate.
Two managers will be required to run each of the balanced portfolios equally, and one or two managers will be appointed to run the bond mandate.
The 80 million euro fund is currently split into two mandates: 30% of the assets are managed as a short-term fixed-income mandate, and 70% as a balanced mandate. The benchmarks currently used are the MSCI EMU sovereign debt 1-3 year index, the MSCI Euro debt index, the Lehman high yield composite index, and the MSCI world net dividend index. The mandates are split equally between Romagest and Morgan Stanley.
“The mandates are due to expire, and so we are re-tendering. Romagest and Morgan Stanley are welcome to re-apply,” says a spokeswoman at the pension fund.
Applications must be received by the end of November.