The PBGC plans to issue an RFP on June 15 for emerging managers to run active domestic core fixed-income portfolios of between $50 million and $150 million each, a notice on the website of the Pension Benefit Guaranty Corp., Washington, said.
The notice said the “portfolio objective will be to provide a total rate of return over a full market cycle that exceeds the portfolio benchmark (Barclays Capital U.S. Aggregate Bond index) at appropriate levels of risk.”
The RFP is the result of the agency's smaller manager pilot program. Specifics regarding the portfolios could not be learned by press time, but in the Dec. 4 board of directors meeting minutes, board members discussed the PBGC's advisory committee recommendation to establish such a program “aimed at removing barriers so smaller managers could compete for PBGC investment management business.”
The board at the time voted to start a pilot program.
The notice regarding the RFP said the PBGC will be holding an industry outreach program for interested parties at 9 a.m. EDT on June 8 at 1200 K St. NW, Washington, DC 20005. RSVPs and questions should be submitted to [email protected]by May 11.
The RFP will be available on a federal procurement website on or around June 15.
Marc Hopkins, PBGC spokesman, declined to provide further information.