Connecticut Retirement Plans & Trust Funds, Hartford, approved a search for a consultant to help the $24.5 billion system find a master custodian.
The search proposal was offered by state Treasurer Denise L. Nappier, the principal fiduciary of the system, which comprises six state pension funds and eight state trust funds.
As of Friday, a formal RFP hadn’t been posted on the state treasurer’s website, www.state.ct.us/ott/rfpbid.htm.
The consultant’s job will include creating a needs analysis for custodian services, upgrading an RFP for a master custodian, conducting due diligence on the applicants and negotiating a contract, according to a Jan. 6 report from Ms. Nappier to the system’s investment advisory council.
The current master custodian is State Street, which has held the job since July 2005 and whose current contract expires June 30, although it could be extended for two years.
In an interview, Ms Nappier said State Street is invited to rebid, adding that state purchasing requirements call for periodic competitive searches.
Also on Wednesday, Ms. Nappier said Blackstone Real Estate Special Situation Fund II was awarded $75 million, pending negotiations.
The Connecticut system has three other investments with three other Blackstone funds totaling $180 million, Christine Shaw, director of government relations for the treasurer’s office, said in an interview.
In a related matter, the investment advisory council endorsed making a commitment to Lone Star Real Estate Fund II. The council responded to a Jan. 5 report from Ms. Nappier and M. Timothy Corbett, chief investment officer, recommending a commitment in the Lone Star fund. Ms. Nappier will decide the amount.
Separately, the system reported its $24.5 billion market value as of Dec. 31 represented a 14.9% gain, net of all fees and expenses, for the first six months of the current fiscal year.