Federal Thrift Savings Plan, Washington, next year will issue RFPs for managers to run the $287 billion defined contribution plan's four externally managed investment options, accounting for $150 billion of its assets.
The four options, currently all managed by BlackRock, will be put out for bid sometime in 2012 “when they're ready,” Thomas Trabucco, director of external affairs for the plan, said in an interview.
The upcoming RFPs will cover the F Fund, a fixed-income index fund; the C Fund, a common-stock index fund; the S Fund, a small-cap equity index fund; and the I Fund, an international stock index fund.
The fifth fund, which accounts for roughly 40% of assets, is a government securities fund of U.S. Treasuries co-managed with the U.S. Treasury.
Mr. Trabucco said the plan bids for asset management services every five or six years, in separate RFPs for each of the four funds. The contracts typically begin as three-year contracts that get one- or two-year extensions, which was the case with the current BlackRock contracts.
Hewitt EnnisKnupp is assisting.