Texas Permanent School Fund, Austin, is searching for one or more commodity specialist managers to run a total of $750 million.
The details of the commodity manager RFP were confirmed in an e-mail by Suzanne Marchman, a spokeswoman for the Texas Education Agency, which is responsible for the $22.8 billion fund.
The fund seeks managers with at least $500 million under management in long-only or long/short commodity strategies offered in both commingled and separate account formats for its first allocation to commodities. The RFP also indicates the need for a customized investment approach for the fund's commodities portfolio.
The RFP does not specify the size of each of the mandates likely to be awarded to successful bidders for the five-year assignment, which includes two two-year extensions.
In August, trustees of the Texas State Board of Education, which oversees investment of Texas Permanent, approved a 50-50 split of the fund's then-allocation to the real-return asset class into commodity and U.S. Treasury inflation-protected securities.
At that time, trustees approved internal management for the TIPS allocation.
Commodity manager proposals are due Jan. 26. On July 18, finalists will present to the investment committee of the Texas State Board of Education, and the full board is expected to approve the selected managers on July 20, according to the RFP.