Milwaukee County Employees' Retirement System issued three RFPs in searches for equity managers to run $110 million in international, $60 million in emerging markets and $50 million in U.S. small-cap value equities, according to the RFPs.
The proposals don't specify active, passive or enhanced management, although each RFP said the pension fund seeks managers “most likely to successfully outperform the (respective) benchmark with controlled risk.”
The pension fund, which oversees $1.7 billion, could hire more than one manager in each search, according to the RFPs, posted on the county's website.
The pension fund plans to distribute the RFPs to a select group of money mangers. “However, qualified firms that do not receive an RFP are encouraged to compete and may obtain the RFP document from the Milwaukee County website,” the RFPs said.
Proposals for each search are due May 1.
Funding could come from fixed-income managers on a pro-rata basis as part of a change in target asset allocations, said Daniel Gopalan, fiscal officer. No managers would be terminated, he said.
The pension fund's new target allocations are 25% U.S. equity, 22% fixed income, 20% international equity, 10% long/short equity hedge funds, 8.5% each real estate and infrastructure, and 6% private equity.
The previous targets were 29% fixed income, 23% U.S. equity, 18% international equity, 10% long/short equity, 7% each real estate and infrastructure, and 6% private equity.
The pension fund's board could make a decision in June or July, Mr. Gopalan said.
Marquette Associates, the pension fund's investment consultant, will assist in the search.
