Florida State Board of Administration, Tallahassee, named MSCI Barra, Wilshire Associates, State Street and BNP Paribas as finalists to provide a total risk model and a hedge fund risk model to the board, according to John Kuczwanski, FSBA communications manager.
The board, which oversees $152.2 billion, plans to makes a selection Feb. 11. It could hire one or more firms for the models.
The board does not have a total fund risk model or a hedge fund risk measurement and monitoring model. It uses holdings-based risk models from MSCI Barra for global equity and Wilshire Associates for fixed-income asset classes. Their assignments will not be affected by the search.
FSBA is in the early stages of building a hedge fund program for the $124.5 billion Florida Retirement System defined benefit fund, assisted by hedge fund consultant Cambridge Associates. The board, which oversees the Florida system, targeted a 6% allocation to hedge funds.
No consultant is assisting with the search.
Separately, the board received proposals from Wilshire, Hewitt EnnisKnupp, Mercer, Callan Associates and R.V. Kuhns in a search for a consultant to assist it in looking for a global master custodian. The firms were invited by the board to send proposals.
The consultant would assist the board in developing criteria for the custodian search, including possibly unbundling securities lending and other non-core custodial services.
A consultant could be selected Friday; the search for a global master custodian will begin March 1.