Arizona State Treasurer's Office, Phoenix, is searching for a master custodian for the $4.1 billion Permanent Endowment Trust Fund, confirmed Mark Swenson, deputy state treasurer.
The chosen firm also will serve as master custodian for $9 billion in other investment pools overseen by the treasurer's office, according to an RFP posted on the website of the National Association of State Treasurers. About 95% of the assets overall are managed internally.
The search is being conducted because the contract of current custodian J.P. Morgan Chase will expire March 31, 2014. Mr. Swenson said the firm is invited to rebid.
As of March 31, 2013, the endowment had 62.4% in domestic equities and 37.6% in domestic fixed income. Mr. Swenson said the treasurer's office is studying the possibility of expanding into global equities and fixed income along with Treasury inflation-protected securities, real estate investment trusts and U.S. public natural resources. Any recommendation would likely come in the next 12 to 18 months, he said.
Proposals are due at 4 p.m. MST on Oct. 1. The three-year contract, with an option for two one-year extensions, would begin April 1, 2014.
