Ohio Bureau of Workers' Compensation, Columbus, might begin a search at the end of June for minority-owned and/or women-owned managers to run a total of $250 million in passive domestic large-cap equities for the $25 billion State Insurance Fund, spokeswoman Melissa Vince said.
The search would be the result of the bureau switching its minority- and women-owned business enterprise program, which has an overall target of 1%, to passive managers from active managers. According to a memo to the bureau's investment committee and board of directors from Bruce Dunn, chief investment officer, and Lee Damsel, director of investments, since the program's inception in 2011, “the program's returns have been meaningfully below its target benchmark to the broad Russell 3000 U.S. equity index.”
Attucks Asset Management and Leading Edge Investment Advisors have remained the sole managers, each running about $125 million, in the program since they were originally hired in September 2011.
Patrick Silvestri, Attucks Asset Management's CIO, and Dani J. McLeod, Leading Edge's senior vice president, director of business development and client relations, could not be immediately reached to provide comment. According to April 27 investment committee meeting minutes, neither manager is expected to be a candidate for the search because they manage only active strategies.
Ms. Vince said the bureau's investment committee reviewed a first draft of the RFP at its May 25-26 meeting, and the issuance of the RFP is pending final approval by the committee and board of directors at the June 22-23 meeting.
If approved, the RFP would be issued June 26; proposals would be due July 18, with finalist presentations Aug. 24 and a decision to follow shortly thereafter.
The RFP would be posted on the state's procurement website.
Investment consultant RVK is assisting.