Pontiac (Mich.) General Employees' Retirement System is searching for an emerging markets equity manager to run about $25 million on behalf of the defined benefit plan.
Dahab Associates, investment consultant to the $500 million DB plan, is assisting with the search.
This is a new asset class for the system based on the recently approved asset allocation, which calls for a 5% allocation to emerging markets, said Steven Roth, chief investment officer at Dahab Associates, in an email. Prior to this new asset allocation, the city did not have a dedicated emerging markets mandate.
Funding for the mandate will come from rebalancing the system's existing international equity allocation.
Active, passive and emerging managers will all be considered. Proposed investment vehicles should be commingled or mutual funds, unless the portfolio is American depository receipt index-only or exchange-traded fund-only.
The RFP is available on Dahab's website. Proposals are due by 5 p.m. EDT on April 4. A time frame for selecting a manager has not yet been established, said Mr. Roth.