Iowa Public Employees’ Retirement System, Des Moines, issued an RFP for firms to provide future commission merchant services and margin management services.
Firms can submit proposals for either one or both services, the RFP said. The $27.7 billion pension fund could hire more than one firm.
“IPERS intends to employ the use of liquid, exchange-traded futures/derivatives in its portfolio for the purposes of rebalancing to allocation targets,” the RFP said.
Judy Akre, IPERS director of communications, said in an e-mail that “IPERS would like to have a service provider to help execute, clear and manage derivatives positions that IPERS staff may initiate. The services are to assist IPERS with internal needs of derivatives trading and management. They are not specific to particular asset classes.”
IPERS has no such provider now.
“IPERS currently rebalances by moving assets between its external managers,” Ms. Akre said.
The pension fund is seeking future commission merchant services that include executing and clearing exchange-traded derivatives on all major exchanges and margin management services that include monitoring positions and margin balances, and taking action on breaches.
The RFP is available on the pension fund’s website. Proposals are due March 27. The pension fund’s board could make a decision in April or May.
IPERS is not using an investment consultant to assist in the search.