Ohio Bureau of Workers’ Compensation, Columbus, will launch a search next week for core-plus real estate commingled fund managers to run a total of $650 million to $700 million for the $23 billion State Insurance Fund, said Melissa Vince, spokeswoman.
The bureau’s board of directors approved issuing an RFP for core-plus real estate at its meeting on Thursday. The RFP, expected to be issued on March 31 with a proposal deadline of May 14, will be posted on the state’s procurement website.
The search comes after an increase in the fund’s overall real estate target to 12% from 6%. That target allocation is made up of a new 3% core-plus target and increases in core real estate to 7% from 4.5% and value-added real estate to 2% from 1.5%.
The increases are being funded by reductions in the U.S. Treasury inflation-protected securities target to 10% from 14% and the long-duration government bonds target to 4% from 6%.
Investment consultant RVK is assisting.
Separately, the board of directors is expected to vote at its April 24 meeting on a third and final allowed contract extension for RVK.
If the board approves the extension to June 30, 2016, the bureau would be required to issue an RFP for an investment consultant late in 2015 or early in 2016. If not, the bureau would issue an RFP as soon as possible; RVK’s current contract expires on June 30. RVK would be invited to rebid.
