US - The US$60bn Ohio Public Employees Retirement System is searching for a high yield commercial mortgage-backed securities manager for a US$25m mandate.
“Candidates must have the capability to analyse and monitor all of the major commercial real estate markets in the United States,” OPERS said.
“OPERS will only consider managers who do not charge incentive fees.”
In October, the fund announced it would begin lending mortgage-backed securities from its fixed income asset portfolio before the end of the year as part of its strategy to enhance revenue it receives from its securities lending program.
Mortgage-backed securities are bonds consisting mostly of residential real estate mortgages as the underlying collateral. According to OPERS, they are becoming more important as assets that provide liquidity in the marketplace.
Director of investments Neil Toth said the fund would engage Key Bank in Cleveland and Dresdner Bank in New York as securities lending agents to manage the lending of OPERS’ mortgage-backed securities portfolio, valued at approximately US$4bn.
OPERS consultant Ennis Knupp & Associates is advising the fund on the tender. Deadline for tender is December 30.
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