Pennsylvania Municipal Retirement System, Harrisburg, is looking to allocate roughly $1.1 billion to multiple index funds and $131 million to two small-cap value managers.
Dahab Associates, investment consultant to the $2.7 billion plan, is assisting with the search.
For the index funds, the system is looking to allocate $397 million to fixed income (measured against the Barclays Aggregate), $277 million to emerging markets equities (MSCI Emerging Markets), $167 million to developed international equities (MSCI World ex-U.S.), $150 million to small-cap equities (Russell 2000) and $128 million to large-cap equities (S&P 500).
Respondents must be able to offer all five strategies as commingled funds with non-securities lending options.
The board is seeking two small-cap value managers: one to run $71 million and the other to manage $60 million.
The searches are being conducted to comply with Pennsylvania state law requiring contracts go out to rebid every five years, said William E. Dahab, managing director and partner at Dahab Associates.
State Street Global Advisors is the system's current index fund manager. LSV Asset Management and Smith Graham & Co. Investment Advisors are the incumbent small-cap managers. All three are invited to rebid.
Proposals are available on Dahab's website. Proposals for both searches are due 5 p.m. EDT Oct. 29. A timeline for selection has not yet been determined, Mr. Dahab said.
