Seattle City Employees' Retirement System is searching for a cash overlay manager, confirmed Anthony Smith, investment strategic adviser.
The $2.1 billion pension fund is looking for a firm to “equitize” excess cash held by both the plan in general and individual managers, Mr. Smith said. The overlay will also be used for rebalancing purposes.
“Essentially, it is to plug leakages in the portfolio,” Mr. Smith said in a telephone interview. “We want to save on every basis point we can … and be as efficient as we possibly can.” He added the pension fund is trying to determine whether an overlay strategy would work with more illiquid asset classes as well.
Investment consultant Pension Consulting Alliance is assisting.
The RFP is available on the pension fund's website. Proposals are due at 5 p.m. PDT Oct. 1. A hiring decision is expected by the end of the October.