Iowa Public Employees' Retirement System, Des Moines, is searching for internal investment management consulting services for the $32 billion pension plan, confirmed Karl Koch, chief investment officer.
Currently, IPERS uses external investment managers to run all its assets. However, the board believes "the use of internal management could reduce the cost of active investment management strategies for the system, and is committed to developing internal management ... as part of its long-term strategic plan," the RFP said.
IPERS' board also believes developing "an in-house, hands-on investment culture could improve the investment division's skills in hiring, monitoring and retaining external asset managers," it added.
Investment staff is looking into building an internal global macro investment team and then growing that team for different asset classes, depending on the success of the initial team.
As of Dec. 31, the system's portfolio had an allocation of 27% core plus fixed income, 22% U.S. equities, 15% international equities, 11% private equity, 7.5% private real assets, 7% public real assets, 3.5% public credit, 3% each global smart beta equities and private credit, and 1% cash.
The RFP is available on the pension plan's website. Proposals are due by 5 p.m. CDT May 3. A selection date was not disclosed.