PCA is in the process of identifying qualified investment management organizations to manage a Full Suite Overlay program on behalf of one of our public fund clients. “Full Suite” refers to the ability to offer the following capabilities:
- Equitize cash in-line with a policy portfolio
- Hedge currency exposures
- Assist with portfolio rebalancings
- Tactical asset allocation tilts
- Assist with portfolio restructurings
The primary role of this engagement will be to assist the plan in investing/equitizing their cash positions that are held due to periodic contributions and distributions (i.e., capability #1 above). The additional capabilities (i.e., capabilities #2-5) will likely be used on a less frequent basis during the relationship. There is the possibility, however, of hiring two firms; one for full suite services ex. currency and one dedicated currency overlay manager. Dedicated currency managers are encouraged to respond to this RFI.