The PBGC is considering a plan to pre-qualify fixed-income managers as the agency continues to shift its asset allocation to fixed income from equities, according to Bradley D. Belt, executive director. "I'd like to move to a shelf registration concept," Mr. Belt said today at the Bond Market Association's annual meeting in New York. "The idea would be to have pre-qualified managers and pull them off the shelf so we don't have to go through the RFP process." He said agency officials got the idea after the PBGC went through an "expensive" RFP process last year to find three managers to run a total of $7.5 billion in fixed income.
Mr. Belt said in an interview the pre-qualification plan is "very preliminary" and the PBGC first needs to determine if such a plan would be legal under federal acquisition rules. "I believe the answer will be yes," he added.
Mr. Belt also told the BMA that the PBGC is considering the use of pension obligation bonds, but he characterized that as a "germ" of an idea.
