Iowa Public Employees' Retirement System, Des Moines, issued an RFP for managers to run a total of $400 million in high-yield fixed income.
The $22.5 billion system could hire one or more managers, according to the RFP on the system's website.
The system prefers a separate account structure for the managers' portfolios but will consider commingled fund structures as well. It defines the strategy as actively managed long-only, investing at least 85% of the portfolio in publicly traded corporate debt securities rated below investment grade, the RFP states.
The RFP is part of a comprehensive review of Post Advisory Group, which manages $500 million in high-yield bonds, because of organizational changes at the firm, Karl Koch, chief investment officer, said in a statement. Pension fund staff plan to evaluate whether the system should retain Post Advisory as a high-yield manager as part of the RFP decision.
Proposals are due July 26. System officials could make a decision Dec. 1.
Wilshire Associates, the system's investment consultant, is assisting.
Information on how the system would allocate the other $100 million was unavailable. Judy Akre, IPERS spokeswoman, couldn't be reached for comment.
