PBGC scouting for LDI managers to run billions

Pension Benefit Guaranty Corp. is searching for active fixed-income liability-driven investing managers for its revolving fund and trust fund.

More than one manager may be hired, the RFP said.

The revolving fund, with assets of $25 billion as of Sept. 30, is invested solely in U.S. government securities, and trades are implemented through the PBGC's internal investment department.

Award allocations for the revolving fund are expected to range from a minimum of $2 billion for each manager to the entire $25 billion fund to a single manager.

The $63 billion trust fund receives assets from terminated pension plans, and those “can be more flexibly invested,” the RFP said, with allocations expected to range from a minimum of $250 million to a maximum of $7 billion for each manager selected, and the PBGC intends to add to its roster of fixed-income managers for the trust fund.

The current managers could not be learned by press time.

The RFP is available on the Federal Business Opportunities website. Registration is required. Responses are due April 27 at 9 a.m. EDT. The contract will begin Oct. 1 and run for one year, with nine one-year options. No further details were available.

PBGC officials couldn't be reached for additional information.