Florida State Board of Administration, Tallahassee, is searching for firms to provide corporate governance research and proxy voting services for the U.S. and non-U.S. equities in the $143.7 billion in assets it oversees, according to an invitation to negotiate.
The board — whose oversight includes the $119.4 billion Florida Retirement System defined benefit plan — could hire more than one firm.
The board currently uses a number of firms for such services. Institutional Shareholder Services, Glass Lewis and Proxy Governance are the board's primary corporate governance research providers, and it receives proxy research and advice on individual company proposals from all three firms, according to an e-mail from Michael McCauley, senior officer-investment programs and governance. The board uses The Corporate Library, Equilar, Conflict Risk Network, IW Financial and Jantzi-Sustainalytics for more specialized governance research needs.
Many of the firm's existing contracts will expire at the end of the year, Mr. McCauley added. They can all bid.
This search is the board's first formal bidding process for governance services. FSBA did not go through RFPs for the existing firms. The board is conducting the search without the use of a consultant.
Proposals are due Nov. 5. The board expects to make a decision Nov. 30.
The FRS plan, which combined its equities into a single unified global equity asset class, had about 36% in U.S. equities and 19% in non-U.S. equities as of June. 30.