Fixed Income Manager

Added: Nov 25, 2009 10:05 am

Synopsis - Fixed Income Manager

This Synopsis is not a Request for Proposal (RFP) or Request for Quotation (RFQ). The attached Draft Statement of Work may be subject to change and is provided for informational purposes only.

The Employee Retirement Income Security Act of 1974 (ERISA) established Pension Benefit Guaranty Corporation (PBGC) as a federal corporation to encourage the growth of defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum. Defined benefit pension plans promise to pay a specified monthly benefit at retirement, commonly based on salary and years on the job. PBGC, a wholly owned United States Government corporation, administers the insurance program and termination process for most private-sector defined benefit pension plans that are tax-qualified under the Internal Revenue Code. PBGC is headed by a Director who reports to a board of directors consisting of the Secretaries of Labor, Commerce, and Treasury, with the Secretary of Labor as Chairman. General tax revenues do not fund PBGC. PBGC collects insurance premiums from employers that sponsor insured pension plans, earns money from investments and receives the assets of the pension plans it terminates.
The Investment Manager (hereinafter referred to as contractor) shall provide active investment management services for fixed income portfolios that will provide over a full market cycle, a total rate of return which exceeds the benchmark of the respective portfolio, consistent with appropriate levels of risk.
Investments of trust fund assets for this mandate may include fixed income and derivative products that are obligations of both domestic (U.S.) and non-U.S. issuers. The contractor shall exercise best efforts to select securities suitable and appropriate to the PBGC's mission. The contractor shall be responsible for providing active investment management and related services for fixed income portfolios. The portfolios may be in one or more of the five fixed income strategies listed below:
Strategies:
1. Core Fixed Income
2. Global Fixed Income
3. Long duration Fixed Income
4. Emerging Markets Debt
5. High Yield