2 Iowa retirement systems on lookout for fixed-income managers

Iowa Public Safety Peace Officers' Retirement, Accident and Disability System and the Iowa Judicial Retirement System, both of Des Moines, are searching for fixed-income managers to run a total of up to $140 million.

Michael L. Fitzgerald, state treasurer, who oversees the systems, issued the RFP. The $313.5 million public safety system seeks managers to run $90 million to $100 million, while the $120 million judicial system, $30 million to $40 million. The number of managers hired will depend on the responses, Jina Bresson, executive officer, state treasurer's office, said in an e-mail.

The RFP doesn't specific a fixed-income strategy.

“This RFP is intended to solicit best ideas for the allocations to fixed income and to use the breadth of instruments available to institutional investors while still keeping the volatility of the designated fixed income portfolio within historical bands defined by the Barclays Capital Universal Index, i.e,, core plus,” Ms. Bresson said in the e-mail. “Average allocations of up to 20% non-U.S. and up to 15% high yield will be permitted.”

The RFP was issued in anticipation of expiration of the contracts of the incumbents in late spring. Loomis Sayles manages manage $78.7 million and Dix Hills, $15.9 million, for the public safety system, while Principal Financial Group manages $32.6 million and Dix Hills $2.5 million, for the judicial system. The managers can rebid, Ms. Bresson said in the e-mail.

The RFP is open to any qualified manager, Ms. Bresson said in her e-mail, although the RFP notes Buck Consultants, the systems' investment consultant, also is soliciting responses from a select group of fixed-income managers screened from Buck's database.

The RFP is available from the treasurer's website. Proposals are due March 29. A decision is expected by May 9.