US - The Pension Benefit Guaranty Corporation (PBGC) has selected BlackRock, Goldman Sachs and JP Morgan to mange $2.5bn (€1.9bn) in real estate and private equity assets.
The three investment managers will provide support to the fund's in-house investment team.
Charles Millard, director for PBGC, said: "Our strategic relationships will be long-term in nature and will add tremendous value for the PBGC going forward."
The PBGC, which guarantees payment of pension benefits for 44m American retirees and workers, selected the triumvirate for their experience in allocating private equity and real estate and their commitment to a complete partnership.
"These relationships will benefit the PBGC, not only with private equity and real estate investments, but in risk analytics and mitigation, consolidated reporting and staff augmentation. These resources will put the PBGC on a more strategic foundation for its future," said Milliard.
BlackRock, Goldman Sachs and JP Morgan will be required to share information and give the fund unrestricted access to all their financial, quantitative and qualitative resources.
Laurence Fink, chairman and chief executive officer for BlackRock, said: "Institutional investors at the forefront of best practices are adopting the strategic partnership approach to gain access to world-class intellectual resources."
PBGC guarantees the payment of pension benefits of American workers and retirees in over 29,000 private sector defined benefit pension plans. Its operations are financed mainly by the corporation's investment returns and by insurance premiums paid by businesses sponsoring pension plans.
