New York City Retirement Systems has issued an RFP for managers of U.S. and/or global inflation-linked fixed income, according to an RFP posted on the website of city Comptroller Scott Stringer, the fiduciary for the five pension funds in the retirement system, which has a total of $150 billion in assets.
The aggregate allocation to Treasury inflation-protected securities in the city pension system now accounts for $4 billion in assets, according to the RFP.
The retirement system is seeking managers of long-only inflation-linked securities whose strategies could include “active, passive and enhanced indexing,” the RFP said. Although the pension system currently invests in TIPS, the RFP said managers of U.S. and/or global inflation-linked securities “may be considered.”
The total dollar amount allocated to inflation-linked bond managers for the new contracts will be between $4 billion and $5 billion, the RFP said.
The initial contracts will be for three years with renewal options of up to six more years, the RFP said.
The RFP did not say how many managers would be selected. It also did not identify current managers of inflation-linked bonds, although it said they are welcome to bid as long as they comply with the guidelines of the search, which are posted on the comptroller’s website. Registration is necessary.
The current contracts expire March 31, 2015.
According to the estimated timetable provided in the RFP, proposals are due July 15. Evaluations and interviews will take place between July and September. The contracts are scheduled to start in January 2015, the RFP said.
Eric Sumberg, a spokesman for Mr. Stringer, did not respond to questions by press time.