NYC Retirement issues call for enhanced yield managers for $9 billion portfolio

The New York City Retirement Systems issued an RFP for enhanced yield fixed-income managers, according to a notice posted on the website of city Comptroller Scott Stringer, the fiduciary for the five pension funds within the $170.6 billion pension system.

“The goal of the RFP is to expand the breadth of managers working in this area,” Jack Sterne, a spokesman for Mr. Stringer, wrote in an email.

Approximately $9 billion of system assets are in enhanced yield strategies, or about 6% of total assets, according to the RFP.

The search is “open to all long-only styles of management of below-investment-grade fixed income,” the RFP said. “The search is open to multiple approaches of management of enhanced yield fixed-income portfolios.”

The RFP said incumbent managers must rebid. The current managers are Loomis Sayles & Co., Shenkman Capital Management, Oaktree Capital Management (OAK), Neuberger Berman, Stone Harbor Investment Partners, T. Rowe Price, Penn Capital Management and Fort Washington Investment Advisors.

Managers are expected to use separate accounts or collective trusts, the RFP said.

Proposals are due Feb. 23. Evaluations, interviews and selections will take place from March through July. New contracts will take effect Oct. 1.

The RFP is available on the comptroller's website. Registration is required.