New York State Deferred Compensation Plan, Albany, issued an RFP for the management of some components of the plan’s Stable Income Fund.
The plan is looking for one or more managers to provide active short duration and active intermediate aggregate fixed-income management.
The new contracts run up to 10 years, depending on negotiations, David Fischer, executive director, wrote in an email.
The Stable Income Fund is a stable value investment option whose $6.8 billion represent about 34% of total plan assets as of Sept. 30.
EARNEST Partners is responsible for $425 million in active short-duration assets benchmarked to the Bloomberg Barclays 1-3 Year Government index, Mr. Fischer wrote.
The current manager for intermediate fixed income, Jennison Associates, runs about $1 billion. This active intermediate core fixed-income component is benchmarked to the Bloomberg Barclays Intermediate Aggregate index.
EARNEST Partners and Jennison can rebid. Their contracts end Sept. 30.
MacKay Shields manages $760 million in short-duration assets benchmarked to the Bloomberg Barclays 1-3 Year Government/Credit index. Although its contract ends Sept. 30, 2020, Mr. Fischer said the deferred compensation plan is considering replacing MacKay Shields for “asset allocation reasons.” MacKay Shields is invited to rebid.
“It is uncertain if MacKay will be replaced since their contract is not due,” he added. “It depends a lot on the responses.”
Investment consultant Callan Associates is assisting. The RFP is available on Callan's website. Proposals are due March 1. Interviews will be conducted in early May, and a decision should be made in mid- to late May. The contracts will take effect Oct. 1.