New York State Deferred Compensation Plan, Albany, has issued an RFP for a balanced fund manager and an RFP for a multiasset credit fund manager, according to a posting by its investment consultant Callan.
The Vanguard Wellington Balanced Fund accounts for $2.45 billion of the plan’s $38.7 billion in assets. Vanguard is invited to re-bid, the notice said.
The RFP is open to mutual funds, collective investment trusts “or other daily valued pooled vehicles, but is not open to separate accounts,” the notice said.
Proposals must be submitted by Dec. 3, and finalists will be selected in January 2025. The winner will be chosen in February 2025; the 10-year contract will take effect July 2025.
The plan’s governing board can authorize a pair of one-year extensions “in the best interests of the plan and plan participants," the RFP said.
The RFP for a multiasset credit fund manager represents a shift in strategy because the plan will drop the Voya Core Plus Trust, the only active fixed-income investment in the $38.7 billion plan.
The core plus trust accounts for $127.3 million in plan assets, the RFP said, and invests mostly in U.S. government securities, especially Treasuries.
The RFP said the deferred compensation plan is looking for a fund that includes U.S. investment grade fixed-income credit securities, such as corporate bonds, and securitized products such as mortgage-backed securities “with an average portfolio credit rating of investment grade.”
The RFP isn’t seeking core plus funds. The deferred compensation plan is willing to evaluate mutual funds, collective investment trusts “or other daily valued pool vehicles, but is not open to separate accounts,” the RFP said.
Applications are due Dec. 3. Finalists will be notified in January 2025. A winner will be selected in February 2025, and the contract will start in July 2025.
The contract will run for 10 years, and the board could authorize a pair of one-year extensions, the RFP said.
Information may be obtained by contacting [email protected] or [email protected].
