Pennsylvania Municipal Retirement System, Harrisburg, is searching for an index fund manager to oversee $560 million in index funds, according to an RFP posted on the website of Dahab Associates, the $1.4 billion system’s general consultant.
The manager will oversee the system’s indexed portfolios: $280 million in fixed income, benchmarked to the Barclays Aggregate Bond index; $160 million in emerging markets equity, benchmarked to the MSCI Emerging Markets index; $90 million in small-cap equity, benchmarked to the Russell 2000; $30 million in large-cap equity, benchmarked to the S&P 500.
James B. Allen, secretary of the retirement system, said in a telephone interview that the account is up for bid because a state law requires competitive bidding on such contracts. He noted the contract with incumbent State Street Global Advisors ends in mid-March. Mr. Allen said SSgA was invited to rebid.
Mr. Allen said the system uses overweight positions in the index funds to rebalance other positions in the portfolio on a monthly basis.
The RFP is available on Dahab’s website at http://dahab.com/searches.html.
Proposals are due by 5 p.m. EST on Dec. 20. They must be sent to Steven Roth, Director of Manager Research, Dahab Associates, Inc., 423 South Country Road, Bay Shore, New York 11706, or e-mailed to [email protected]
No selection date was specified.