ITALY - Previndai, the €3bn Italian industry wide pension fund for managers of industrial companies, has launched a major investment manager search for several bond and equity mandates, IPE has learned.
In total Previndai will tender for six “newly established” mandates, two bonds and three equity mandates, of an undisclosed size (see details below).
The Rome-based fund, which has an insurance and two financial portfolios, said: “The search aims at identifying the investment managers to whom the newly established mandates shall be granted (global bonds, US equities, Italian equities, Asian equities) and moreover at verifying the investment managers of the existing mandates (euro- denominated bonds and European equities).”
The deadline for applications is 21 November and the fund expects that the new mandates will start during the first quarter of 2008.
In 2005, the fund already selected 10 new asset managers as it started offering members an alternative to insurance contracts.
Until then, Previndai’s member saved through insurance policies, but in 2005 were given the chance to invest in two portfolios: a bond strategy called “balanced” and an equity one named “development”.
a) Euro bonds (A+ or better; S&P rating; active management of duration; duration of mandate four years);
b) Euro bonds (Min. 65% A+ or better, max. 35% A down to BBB-; S&P rating; active management of duration; duration of mandate three years);
c) Global bonds (Min. 65% A+ or better, max. 35% A down to BBB-; S&P rating, min. 65% euro denominated, max. 35% non euro denominated; active management of duration; duration of mandate three years);
d) European equities (Large & mid caps listed on pan-European stock exchanges, including the United Kingdom, Scandinavian countries and Switzerland; duration of mandate is four years.)
e) U.S. Equities (Small & mid caps listed on USA markets; duration of mandate three years);
f) Italian Equities (From large to small-caps listed on the Italian market; duration of mandate four years);
g) Asian Equities (Ex. Japan, incl. among others China, India and Australia, hedged in euro; harmonised funds as investment vehicle are being considered for management efficiency; duration of mandate three years.)