Philadelphia Gas Works Retirement Reserve is searching for a passive U.S. small-cap core equity manager to run an as-yet-undetermined amount for the $520 million pension fund.
The proposed strategy must be benchmarked to the S&P SmallCap 600 index. Separate accounts, mutual funds and other commingled pools will be considered, confirmed Christopher DiFusco, chief investment officer for the Philadelphia Sinking Fund Commission and trustee of the pension fund.
The pension fund's U.S. small-cap equity portfolio is currently about $50 million, with Eagle Asset Management running an active growth account, Vaughan Nelson Investment Management running active value and Copeland Capital Management, active core. The search is being conducted to offer a core alternative to those incumbent managers, an RFP said.
The RFP is available on the city's procurement website. Registration is required. Proposals are due by 5 p.m. EST on Jan. 25. A selection is expected to be made on or around May 1.
The pension fund's asset allocation is about 70% foreign and domestic equities, and 30% domestic fixed income and cash.