Iowa Public Employees' Retirement System, Des Moines, named seven managers as finalists in its search for absolute-return strategies that can be implemented in its portable alpha framework.
The $41.1 billion pension fund's board approved the finalists at its Sept. 28 meeting, spokeswoman Shawna Lode said.
IPERS does not currently have a target allocation to absolute return. The RFP issued in December said proposed strategies are "expected to have a long-term beta of less than 0.4 to global equity markets, global rate markets, global credit markets and commodity markets."
The finalists and their strategies are Contrarian Capital Management (emerging markets distressed), DCM Systematic Advisors (diversified alpha), Invesco (dynamic multifactor), Jupiter Asset Management (strategic absolute-return bond), Kosmos Management (life insurance paired policies), Neuberger Berman (insurance linked) and Orion Commodities Management (commodities).
IPERS staff will conduct on-site interviews with the seven firms to evaluate operations, stability and ability to work with the pension fund, according to a memo included with board meeting materials. The dates of the visits, which will be conducted in a"prudent manner," have yet to be determined.
Following the interviews, a notice of intent to award will be issued upon board approval, according to the memo.