Italian pension fund Fondo Arco tenders four mandates worth €400m
Fondo Arco, the Italian pension funds for workers employed in the wood, furniture, forestry, brick and concrete sectors, is searching for four managers for its €403m Bilanciato Prudente sub-fund.
The €484m scheme launched the tender shortly after releasing its newly approved 2013 balance sheet, which saw a 12% increase in assets under management, from around €424m at the end of 2012 to €474m at the end of last year.
Fondo Arco offers five-year mandates for a mixed equity, government bond and corporate bond portfolio of assets, which it forecasts will increase by €20m during 2014, thanks to contributions from current members.
The tender was launched as the previous mandates for the sub-fund, held by Credit Suisse, Unipol Assicurazioni, JP Morgan Asset Management, Eurizon Capital and Natixis Asset Management, came to the end of their term.
The scheme sets a benchmark for the sub-fund structured as follows:
- 25% JPM Gov. Bond Emu IG 1-3
- 25% JPM Gov. Bond Emu IG All maturities
- 10% IBbox Eur Liquid Corporates 100
- 10% BofA ML Direct Government Inflation Linked
- 15% MSCI TR NET EMU LOCAL
- 15% MSCI Kokusai (World ex Japan)
Fondo Arco also specifies that the equity portion will vary from a minimum of 20% to a maximum of 40% of the portfolio.
The maximum investment in equity collective investment schemes will be 15%, while the maximum corporate bond exposure will be 15%.
Foreign exchange risk will be actively managed and set at a maximum of 25%.
Tracking error volatility will be limited to 4% per year.
The scheme adds that prospective managers will have to comply with its guidelines for ESG investment approved last year.
The deadline for applications is 26 May.