New York State Deferred Compensation Program, Albany, will issue an RFP for international equity managers.
The RFP, which is expected to be posted in July, covers two separate accounts — $655 million in actively managed investments and $167 million in passive investments, wrote David E. Fischer, executive director of the $31.3 billion plan, in an email. The plan's governing board made the announcement Feb. 26.
The investments are benchmarked to the MSCI EAFE index, but active managers can invest up to 20% in emerging markets, Mr. Fischer added.
The incumbent managers are Northern Trust Asset Management for the index component and MFS Investment Management, Dimensional Fund Advisors and Wellington Management for the actively managed component. They are welcome to rebid, Mr. Fischer said.
The RFP is being issued because existing contracts are expiring, he said. The effective date of the new contract is likely June 11, 2022. Contract terms will be between five and 10 years, but precise terms haven't been determined.
Mr. Fischer said the RFP will encourage managers of collective investment trusts and mutual funds to bid in addition to those firms that manage separate accounts. The plan is considering these options because they "have become much better priced," he said.