/ CORRECTION - Delaware State Treasury Announces Proposed Investment Managers

/ CORRECTION - Delaware State Treasury Announces Proposed Investment Managers 
DOVER, DE  -- (Marketwired) -- 04/10/13 --   In the news release,
"Delaware State Treasury Announces Proposed Investment Managers,"
issued earlier today by Delaware State Treasury, we are advised by
the company the fourth paragraph should read, "Reserve Mandate:
Chandler Asset Management, Federated Investors, Inc., J.P. Morgan
Asset Management, Morgan Stanley Investment Management & Schroder
Investment Management North America, Inc.," rather than as originally
issued. Complete corrected text follows. 
Delaware State Treasury Announces Proposed Investment Managers  
Treasurer Flowers Commends Results of Historic Open and Competitive
Selection Process  
DOVER, DE -- April 10, 2013 -- The Delaware State Treasury today
announced its proposed slate of investment managers to assist the
Treasury in managing the state's $2 billion investment portfolio. The
announcement comes at the conclusion of an open and competitive
selection process. A historic number of responses (110) to the
Request for Proposal (RFP), ranging from small entrepreneurships to
global banks, were received by the Treasury to manage the state's
liquidity and reserve mandates under the portfolio. The RFP selection
committee (the "Committee"), appointed by State Treasurer Chip
Flowers, was comprised of Treasury staff and a designated
representative of the Cash Management Policy Board. Credit Suisse
Securities (USA) LLC served as financial adviser to the Committee.  
After an extensive review process, the Committee proposed the
following investment firms to serve as the state's investment
managers, subject to execution of a definitive agreement with the
Treasury: 
Liquidity Mandate: Cutwater Asset Management, M&T Bank, PFM Asset
Management, LLC, & Wells Capital Management; and 
Reserve Mandate: Chandler Asset Management, Federated Investors,
Inc., J.P. Morgan Asset Management, Morgan Stanley Investment
Management & Schroder Investment Management North America, Inc. 
Upon receipt of the Committee's recommendations, Treasurer Flowers
stated, "The historic number and quality of applicants exemplifies
the benefits of an open and competitive selection process. I am very
proud that we continue to open the door of opportunity for those
seeking to do business with the Treasury, which ensures the state
hires the best group of diverse investment managers at a cost
effective rate."  
At the start of the selection process, Treasurer Flowers charged the
Committee with undertaking the following: (i) increase the number of
investment managers to encourage competitive performance; (ii)
decrease the fees charged by the state's investment managers to
generate cost savings for taxpayers; (iii) promote diversity and
inclusivity; and (iv) propose investment managers that offer the best
value for investment services to the People of the State of Delaware. 
The selection process was part of a multi-phase plan proposed and
enacted by Treasurer Flowers to increase returns on the portfolio
without increasing the current level of risk and ensure fees paid to
investment managers are in line with the portfolio's returns. Under
the plan, the Treasury has reversed the previously declining returns
on the portfolio and increased returns for three consecutive fiscal
years.  
Treasurer Flowers further stated, "The bold actions taken as part of
our multi-phase plan to improve the performance of the state's
investment portfolio has resulted in millions in additional interest
income for the state without increasing risk. With the completion of
this phase of the plan, I am confident that the proposed investment
managers will meet the standard of excellence that the People of the
State of Delaware expect and rightly deserve by further improving our
portfolio." 
Erika J. Benner 
Deputy State Treasurer 
(302) 672-6700
For additional information, please contact treasury.delaware.gov
 
 
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