IPE-QUEST: Laborfonds adds investment lines
ITALY - The €451m Laborfonds is seeking managers for a guaranteed and an ethical investment line as well as for a European equity mandate, using IPE-Quest.
The defined contribution supplementary pension fund for workers in the region of Trentino-South Tyrol in northern Italy is introducing the guaranteed investment line via a $150m (€111.5m) mandate (QN819).
A guaranteed investment line is currently being introduced by most of the 160 Italian pension funds in order to provide a vehicle for TFR money.
According to the severance pay by-law, a fund has to guarantee a 3.1% minimum annual return on invested TFR money.
A spokesman confirmed to IPE the guaranteed investment line will also be open for members' pension contributions.
Another new investment option for the 83,000 Laborfonds members will be ethical investment as the fund is looking for a manager for a $25m global ethical portfolio (QN 821).
Investment must focus on sustainability, human rights, support for developing countries, responsible company management, environmental issues and animal rights while investment in arms or related industries will be forbidden.
Laborfonds has also announced it is setting up a working group on socially responsible investment which will meet frequently with the investment committee.
The fund is also looking for a European equities manager for up to $10m (QN820). In order to increase its exposure to this asset class, the fund wants to add a second manager to the portfolio which is currently managed by Lombard Odier Darier Hentsch.
Other managers for the fund are San Paolo IMI (European bonds and Italian equities), ING (global bonds) and Ixis Asset Management (US equities).
Deadline for participation in the tenders is midday on July 20 for QN819 and QN820. The search for a manager for the ethical portfolio ends July 25.