New Mexico Public Employees' Retirement Association, Santa Fe, may issue RFPs in late April for managers to run $3 billion in a variety of indexed stock portfolios and $300 million in a enhanced large-cap index fund, said Robert Gish, CIO. The $9.4 billion system's board will vote on approving the RFPs at its Feb. 26 meeting. The contracts of incumbents SSgA and Northern Trust are set to expire Sept. 30; both firms expected to be allowed to rebid.
The association also expects to issue RFPs in October for an active domestic small-cap growth manager to run $300 million and a firm to handle $800 million in active mortgage-backed securities. American Express manages the growth equity portfolio; Goldman Sachs and Smith Breeden each run $400 million in mortgage-backed securities. Their contracts expire March 31, 2005. The firms are expected to be allowed to rebid.
Separately, the association expects to choose finalists by the end of March in its search for managers to run its $2.7 billion fixed-income portfolio, said Mr. Gish. The board is no longer accepting proposals. Officials want firms to run $1.3 billion in core plus; $900 million in a passive portfolio; $400 million in a short-term investment fund; and $100 million in a new government and agencies portfolio. Barclays Global Investors manages $900 million in a Lehman Brothers Government & Credit index fund; Fiduciary Trust, $800 million in limited core plus; and Reams Asset Management, $500 million in limited core plus; all three rebid, Mr. Gish said. The remainder will come from cash.
Callan is assisting.