Oklahoma Tobacco Settlement Endowment Trust, Oklahoma City, on Friday reissued an RFP for at least one global tactical asset allocation manager to run a total of $60 million to $70 million.
The $878 million endowment had issued an RFP in October, but investment consultant NEPC did not receive as many proposals as expected because exchange-traded funds, mutual funds and commingled funds with tobacco-related holdings were not allowed to bid, as per investment policy at the time.
The investment policy was changed in February to exempt those funds from the tobacco-free rules, said Lisa Murray, chief investment officer at the Oklahoma state treasurer’s office, which oversees the trust.
The ban on direct investment by money managers in tobacco-related securities remains in effect, according to the RFP.
The trust last year approved a 5% to 8% allocation to GTAA as part of its overall 16% allocation to alternatives. Funding is coming from rebalancing out of fixed income, Ms. Murray said. No managers will be terminated.
The RFP is available on NEPC’s website. Proposals are due at 4 p.m. PDT May 9; a selection is expected on or after June 30.