Iowa Public Employees’ Retirement System, Des Moines, authorized four separate RFPs, including two manager searches, over the next several weeks, according to a report from the $22.1 billion retirement system.
IPERS expects to issue an RFP for emerging markets debt managers. Information was unavailable on how much IPERS would allocate, or how many managers it would hire, or the kind of strategy. The report said IPERS wants to evaluate strategies and products.
Also, IPERS plans to issue an RFP to commit $150 million in master limited partnership investments. Information was not available on the types of investments or to how many IPERS would make commitments.
The emerging markets RFP is expected to be issued around the last week of January; the master limited partnership RFPs around the first week of January. Wilshire Associates, IPERS’ investment consultant, would assist in both searches, which will be available at the fund’s website and Wilshire’s website.
In addition, IPERS plans to issue an RFP to evaluate transaction cost analysis services for trades of publicly traded securities and foreign exchange. Zeno Consulting Group currently provides such services for equity trades and is welcome to rebid, the report said.
Also the retirement system plans to issue an RFP to evaluate foreign-exchange agency brokerage services. Information was unavailable on which firm, if any, IPERS currently uses for such services.
IPERS expects to issue both the transaction cost analysis and foreign exchange agency brokerage RFPs in mid-December, with both to be posted RFPs on the Iowa fund’s website.
In addition, the retirement system allocated up to $500 million to Pathway Capital Management to commit to private equity partnerships next year.
Pathway is IPERS’ full discretion private equity manager, allowed to make commitments in buyout, venture capital and distressed debt partnerships that meet IPERS investment criteria.
Separately, IPERS hired Aegon USA Investment Management to manage $300 million to $350 million in active high-yield bonds, according to Karl Koch, IPERS chief investment officer, in an e-mail from Judy Akre, IPERS director of communications. Aegon replaced Post Advisory Group, which had managed $500 million in a similar style. Information was unavailable on how IPERS plans to allocate the rest of the portfolio.
IPERS issued an RFP in July for high yield as part of a comprehensive review of Post Advisory because of organizational changes at the firm, according to an IPERS statement at the time.
Wilshire assisted with the search.
Ms. Akre, who provided the report, was unable to provide by press time other details about the searches and hires.