The Pension Benefit Guarantee Corporation is seeking smaller asset managers to invest $50 million to $250 million in U.S. government and corporate long-term and short-term bonds for its trusteed plans and their sponsors.

The PBGC said it chose fixed income as the sole investment for the pilot project because research found smaller asset managers have a good chance of doing better in this category than large firms.

Applicants must have a minimum of $250 million in assets under management and a five-year performance history.

The PBGC is limiting the money it will allow a small manager to control to no more than 20 percent of a firm's assets under management, which is in keeping with industry standards.

A fund chosen should outperform the portfolio benchmark (Barclays Capital US Aggregate Bond Index) over a full market cycle of highs and lows. If the management company fails to meet that goal, there are no penalties, but there is the risk of termination for underperformance.

PBGC will host a pre-bidder's conference on 9 a.m. on June 8 at its headquarters: 1200 K Street NW in Washington, D.C.

To register and for more information, email [email protected] by June 1.