The Alabama State Treasury fund, Montgomery, will seek a custodian to oversee the assets of two new bond managers, which will be chosen next month; both managers will run U.S. Treasury portfolios in amounts yet to be determined, said Anthony Leigh, deputy state treasurer and investment officer for the $2.5 billion operating fund. The custodian will also launch a securities lending portfolio.
The fund's investments are restricted to Treasuries and bank certificates of deposit. It currently has less than 5% of assets invested in Treasuries but can invest up to 20%, Mr. Leigh said.
A selection is expected in September, said Mr. Leigh.