US - The US$64.5bn Ohio Public Employees Retirement System (OPERS) is searching for an actuary and two to three high yield fixed income investment managers to oversee a US$200 to US$500m portfolio.
OPERS said the high yield managers could be benchmarked to the Lehman Brothers High Yield Index.
“We have been invested in high yield - this RFI is to replace a current manager who has indicated they are exiting the product,” said fund spokesperson Rich Baker.
“There was no problem with the manager, and their performance has been good.”
The appointed actuary will be required to conduct an annual actuarial review on behalf of OPERS, among other services. The current actuary, Gabriel, Roeder, Smith & Company (GRS), has been asked to re-apply.
“This is a standard RFP we are doing in compliance with our purchasing policy which requires a periodic re-bid of services,” Baker said. “We are not displeased with GRS at all, but as any good purchasing policy would dictate, it is good business practice to periodically re-bid services.”
OPERS said the term of engagement for the appointed actuary was not definite, but is expected to be for not less than five years.
“The goal of this RFP (request for proposal) is to evaluate and select an actuarial firm who will serve as consulting actuary to the OPERS retirement board,” the fund said in its tender notice.
“The firm awarded the resulting contract will provide various actuarial services that include consultation and advisory services, valuation services, experience analyses and other general duties.” Deadline for tender is April 7.
Consultant Ennis Knupp & Associates is advising the firm on the manager search process. Deadline for tender is April 8.
The fund’s current asset allocation stands at 48.2% US equity, 22.4% global bonds, 23% non-US equity, 5.4% real estate, 0.6% private equity and 0.4% operating cash.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.