Texas Prepaid Higher Education Tuition Board, Austin, is searching for a passive international equity manager and passive inflation-protection securities manager for its $1.4 billion Texas Guaranteed Tuition Plan, confirmed spokesman R.J. DeSilva.
The search is to potentially replace Northern Trust, which manages about $100 million in international equity and $83 million in TIPS for the 529 plan. The contracts are expiring and Northern Trust can rebid, Mr. DeSilva said in an e-mail.
According to the inflation-protection RFP, firms “must offer a passively managed investment strategy with a risk profile in line with the Barclays U.S. TIPS Index.”
The 529 plan was started in 1996 and closed to new enrollment in 2003. Mr. DeSilva said the inflation-protection strategy is set to decrease to $41 million in 2018.
Investment consultant Hewitt EnnisKnupp is assisting.
Both RFPs are available on the state procurement website. The international equity RFP is available here and the inflation-protection RFP, here. Proposals are due at 2 p.m. CDT April 21. Hiring decisions are expected by Aug. 1.
Separately, the plan hired State Street and Northern Trust as transition managers. Northern Trust was already a transition manager, with its contract slated to expire Aug. 31. An RFP was issued in November.
