Nevada State Treasurer's Office is searching for domestic equity and core fixed-income managers to run a total of $261 million for the Permanent School Fund and Higher Education Prepaid Tuition Trust, confirmed Mark Mathers, chief deputy treasurer.
For the $310 million Permanent School Fund, Carson City, at least one manager will run $107 million in large-cap equities, $19 million in midcap and $9 million in small caps. The searches are the first equity moves for the school fund, which has an asset allocation of 100% fixed income, all of which is internally managed.
For the $126 million Higher Education Prepaid Tuition Trust 529 plan, Carson City, at least one manager will run $57 million in large caps, $10 million in midcap, $5 million in small caps and $54 million in domestic core fixed income.
BNY Mellon Asset Management is the current manager of all the prepaid trust's assets and is invited to rebid.
For both funds, the treasurer's office is considering active strategies, as well as passive vehicles with tactical asset allocation or a combination of both. Mr. Mathers said state law requires that the minimum investible market capitalization for state funds be at least $50 million, so only actively managed strategies for small-cap equities are likely to be considered.
The RFP is available at the Nevada State Treasurer's website.
Proposals are due at 3 p.m. PDT on June 1. Mr. Mathers hopes selections will be made the week of July 1.
