Searches and Hires

Ohio Bureau of Workers’ Compensation eyes passive intermediate-bond search

Ohio Bureau of Workers' Compensation, Columbus, may launch a search at the beginning of August for passive intermediate-duration U.S. Treasury fixed-income managers to run a total of about $925 million, spokeswoman Melissa Vince said in an email.

The board of the bureau, which oversees $26.8 billion in insurance funds including the $24.7 billion State Insurance Fund, will vote on July 20 to approve an RFP. If approved, it would be issued on Aug. 1 with proposals due on Aug. 30 and finalist presentations and a decision on Oct. 24. The RFP would be posted on the state's procurement website.

The board at its May 24 meeting approved a new target allocation, which included a new 4% target to passive domestic intermediate-term fixed income, which replaces the 4% target to passive domestic long-duration fixed income. On May 30, the bureau terminated BlackRock (BLK)'s $897 million passive long-duration fixed-income portfolio and moved the assets to cash.

Separately, the board approved follow-on commitments to the State Insurance Fund's four core-plus real estate managers following the increase in that target to 4% from 3%.

The bureau made a follow-on commitment of $50 million to PRISA II, managed by PGIM Real Estate, bringing it to a total of $175 million, and $25 million each to Clarion Lion Industrial Trust, managed by Clarion Partners, Invesco (IVZ) U.S. Income Fund, and Prologis Targeted U.S. Logistics Fund, bringing each to $100 million.

Investment consultant RVK assists with all searches and hires.