New York City Retirement Systems is conducting a search for investment managers to "create and manage one or more" small-cap equity portfolios, according to a notice of solicitation posted on the website of Scott M. Stringer, the city comptroller and fiduciary for the five pension funds within the $191.1 billion retirement system.
City procurement policies permit the comptroller's bureau of asset management — the investment adviser and custodian for the five pension funds — and the boards of the pension funds "to review a broad universe of investment managers," the notice said. The bureau and the investment consultants for each of the five plans "will use industry databases to identify the universe of U.S. small-cap active investment management firms and strategies."
According to the notice, active U.S. small-cap equity represented an aggregate of $2.5 billion of retirement system assets as of Sept. 30, with individual managers responsible for amounts ranging from $150 million to $800 million. The notice didn't identify the managers and didn't comment on why the pension system was seeking managers. Tyrone Stevens, a spokesman for Mr. Stringer, didn't respond to a request for comment.
"Managers are expected to manage portfolios as separate accounts or in commingled vehicles comprised of only" the pension funds within the retirement system, the notice said. Incumbent managers must rebid to retain the business.
The investment approach must be benchmarked to the Russell 2000, Russell 2000 Value or Russell 2000 Growth indexes, the notice said. The contracts are scheduled to run three years "with one or more renewal options up to an aggregate of an additional six years," the notice said.
Applications to the respective pension funds' investment consultants are due Jan. 19, and additional instructions are available on the comptroller's website. Evaluations, interviews and selections are scheduled for March through July. The contract will take effect in October.