Washington State Investment Board, Olympia, has issued RFPs for domestic enhanced index equity and fundamental metrics index managers, said Liz Mendizabal, spokeswoman. The board seeks a long-only, risk-controlled strategy for the enhanced assignment. The fundamental metrics index is a new strategy based on company fundamentals such as total income, total sales and book equity value, which will be applied primarily to U.S. equity markets and possibly some international markets, she said. Officials of the investment board, which oversees $61.3 billion in state pension assets, have not set the portfolio sizes or source of funding, she said. RFPs are available on the investment board's website at www.sib.wa.gov. Proposals are due July 15. Officials plan to conduct interviews in early fall and selections could be made later in autumn. Callan Associates is assisting.
Separately, board officials plan to issue RFPs for two investment options for the state's $1.9 billion Deferred Compensation Program and $14 million Judicial Retirement Account defined contribution plan. Board officials plan to replace the Fidelity Equity Income fund, which has been on watch since December 2004 for performance, and the Fidelity Independent fund, which has been on watch since May 12. RFPs are expected to be available by June 27 on the investment board's website. Proposals will be due July 22, and interviews are expected to be conducted in early fall, with selections afterward.
Fidelity spokeswoman Deborah Pont said: "Generally, Fidelity cannot comment on decisions made by clients. Both of the funds ... are managed by experienced portfolio managers ... and both of these funds have been very competitive performers over the long term. In fact, they have both have beat their Lipper peer group averages for the trailing five-year and 10-year periods."
The investment board also hired Capital Dynamics as its private equity consultant, replacing PCG, whose contract expires in December. The board, which has $6.7 billion in private equity, issued an RFP in February.