Searches and Hires

Rhode Island sticks with Capital Cities as investment consultant for 2 DC plans

State investment commission also rehires Capital Cities as consultant for 529 plan

Updated with correction.

Rhode Island State Investment Commission, Providence, rehired Capital Cities as investment consultant for the state's $900 million 401(a) plan and $368 million 457 plan, said Evan England, spokesman for state Treasurer Seth Magaziner, in an email.

The commission issued an RFP in October because of Mr. Magaziner's policy to put all administrative contracts up for bid by the end of his current term. Cammack Retirement Group and Segal Marco Advisors were the other finalists.

That RFP also included investment consulting services for the state's $6 billion 529 plan, and the commission at its Jan. 23 meeting approved rehiring Capital Cities for those services. Cammack and Segal were the other finalists in that search.

Also, the commission rehired Bank of New York Mellon (BK) as custodian of the $7.8 billion Rhode Island Employees' Retirement System. The commission had issued an RFP in December. Northern Trust and State Street were the other finalists.

Separately, the commission committed up to $25 million to Linchris Capital Opportunity Fund II, a value-added real estate fund managed by Linchris Capital Management, for the pension fund.

As of Dec. 31, the pension fund's actual allocation to real estate was 6.6%.

Mr. Magaziner oversees the investment commission.