Iowa Public Employees' Retirement System, Des Moines, issued separate RFPs for transaction cost analysis services and for agency brokerage services for foreign-exchange transactions.
The $22.1 billion retirement system could hire one firm to provide transaction cost analysis services for equity and foreign-exchange services, or hire one firm for each, according to the RFP on IPERS' website.
Zeno Consulting Group currently provides such services for equity trades and can rebid, according to a pension system report.
For foreign-exchange brokerage services, the system expects to hire one firm to execute sales and purchases of foreign currencies, mostly to facilitate capital calls and distributions made by non-U.S. private equity funds, according to the IPERS' RFP.
The system plans “to notify its existing international equity and fixed-income investment managers, which have full discretion over FX trading in their portfolios, that the FX agency broker services are also available to them at the IPERS' rate.” the RFP states.
The trades are currently executed by master custodian Bank of New York Mellon. System officials want to see whether it can reduce costs.
Transaction cost analysis proposals are due Jan. 26; foreign-exchange brokerage services proposals are due Jan. 20.
The system expects to make a decision on both services in February or March.