PBGC Wants to Hire Smaller Firms to Manage Assets
Today, the Pension Benefit Guaranty Corporation published a request for proposals under a pilot program for smaller asset managers. Proposals are due by Aug. 18, 2015.
The agency will hire up to five managers to invest in a U.S. fixed income portfolio with allocations ranging from $50 million to $250 million.
The Smaller Asset Managers Pilot Program creates new opportunities for such firms by reducing the required amounts of the assets they manage and their mandates. Before the pilot program, these contracts were out of reach to the firms because the minimum amounts of the investments, often in the billions, were too large for the firms to accommodate.
On June 8, 2015 PBGC hosted a pre-bidder's conference to help smaller asset managers understand the process that the agency uses to select money managers.