Alabama Trust Fund, Montgomery, is searching for a passive money manager to run at least $150 million for the $2.7 billion fund, an RFP posted on the state’s procurement website said.
The trust fund is seeking to “identify an index manager who can provide passive investment management for a variety of broad asset classes. The potential mandates include, but are not limited to: core U.S. fixed income, large-cap domestic equity, small-cap domestic equity and international equity,” the RFP said. Initially, the manager would run a $150 million passive domestic large-cap value equity portfolio.
Information on an incumbent passive manager was not available by press time.
The fund's asset allocation as of Dec. 31 was 34% fixed income, 26% international equity, 23% U.S. large-cap equity, 9% real estate and 8% small-cap equity. The trust fund invests oil and gas capital payments generated by drilling activity off of Alabama's Gulf Coast.
Proposals are due at 5 p.m. EDT on June 30. A timeline for a decision was not provided. The RFP is available on the state’s procurement website.
Investment consultant Callan Associates is assisting with the search.
Young Boozer, Alabama state treasurer, could not be reached by press time.