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New York State Deferred Compensation on lookout for growth equity manager

New York State Deferred Compensation Plan, Albany, is looking for a manager to run $2.1 billion in active opportunistic growth U.S. equity, according to an RFP.

Incumbent Fidelity Investments, which manages the money in its Fidelity OTC Portfolio, is invited to rebid, said David E. Fischer, the $21 billion plan's executive director, in an email.

The RFP said managers of mutual funds or collective investment trusts are welcome to submit proposals for a contract that will run for 10 years. Mr. Fischer wrote that the current contract had been scheduled to expire March 31, but it was extended so the plan could issue the RFP.

Managers should emphasize investments in mid- to large-cap U.S. equities in their proposals, the RFP said.

The timetable for the RFP calls for applications to be submitted by July 31, interviews with candidates to take place in October and notification of an award in December. The contract is scheduled to take effect April 1, 2018.

Callan Associates, the plan's investment consultant, is assisting with the search.

Additional information is available on Callan's website.

The New York State plan also issued an RFP for an investment manager to provide environmental, social and governance investments through an actively managed global or U.S. equity strategy.

"There is currently no active ESG Global or U.S. Equity option in the plan lineup," said the RFP, referring to the $21 billion plan. The PaxWorld Balanced Fund, an institutional priced mutual fund, is the ESG option.

The PaxWorld fund represents $95 million in plan assets, Mr. Fischer wrote in an email. PaxWorld is welcome to re-bid but only as an equity manager.

Mr. Fischer said the plan is looking for one investment manager, adding that the amount of money to be invested in this new strategy hasn't been determined. The contract will run for 10 years.

Applications are due July 31, interviews with finalists will take place in October, the winner will be notified in December, and the contract will take place in April 2018.

Callan Associates also is assisting with this search. Additional information may be obtained from the Callan website.