Iowa Public Employees' Retirement System, Des Moines, authorized issuing an RFP for U.S. real estate investment trust managers to run up to $350 million, according to a summary prepared by Karl Koch, IPERS chief investment officer, about actions at its April 4 meeting.
IPERS, which oversees $26.9 billion, plans to consider both active and passive U.S. REIT strategies. It plans to issue the RFP around May 1.
It could hire more than one manager, “only if we decide to hire one active and one passive manager,” Mr. Koch said in an e-mail.
“Personnel turnover at RREEF Securities” — which manages the portfolio now — “has prompted us to evaluate alternative managers,” Mr. Koch said in the e-mail.
Funding will come from RREEF, if IPERS decides to terminate the manager, Mr. Koch said in the e-mail.
Wilshire Associates, IPERS investment consultant, is assisting in the search.
Separately, Bank of New York Mellon was rehired as custodian and Deutsche Bank was hired for securities lending services.
Deutsche Bank will take over for BNY Mellon for securities lending services. The hirings are pending contract negotiations.
Iowa state Treasurer Michael L. Fitzgerald, who is also custodian of the retirement system and investment funds and has full discretion, retained BNY Mellon because it offered the lowest fee proposal for custody services and provided “reliable custody services over the last 12 years,” Mr. Koch said in the summary.
Mr. Fitzgerald issued an RFP for custody and securities lending services in November for the $329 million Iowa Public Safety Peace Officers' Retirement, Accident and Disability System, and the $129 million Iowa Judicial Retirement System, as well as for IPERS.
Mr. Fitzgerald oversees the assets of the public safety and judicial systems. The two systems have used the same bank for custodial and securities lending services as IPERS.
Also, IPERS placed Pacific Investment Management Co.'s core-plus bond portfolio on watch due to the departure of Mohamed El-Erian, who was CEO and co-chief investment officer, and a portfolio manager of the strategy.
The pension fund issued an RFP in December in anticipation of the Sept. 30 expiration of Wilshire's contract.
The IPERS evaluation committee expects to make a recommendation on a consultant for the board to consider at its June 26 meeting.
Mr. Fitzgerald and Stefanie Devin, deputy treasurer-accounting, systems, pension, investments and finance; could not be immediately reached for further details.