ENGLEWOOD, Colo. - The $1.25 billion Colorado Fire & Police Pension Association will place about $40 million into alternative investments, primarily in areas like private equity, said Ruth Sieler, executive director.
The association is looking more for managers of managers rather than specific partnerships or funds, she said.
It already has $90 million in the asset class, including distressed securities, venture capital, timberland and oil and gas.
PROVIDENCE, R.I. - The $3.7 billion Rhode Island Retirement Systems will be looking for up to five new managers to start an emerging managers program, said Barbara B. Schoenfeld, deputy treasurer.
The fund will hire domestic equity and fixed-income managers to manage no more than 2% of the fund, Ms. Schoenfeld said.
Candidates must have at least $50 million under management in the category they wish to manage for Rhode Island, and can have no more than $1.5 billion under management overall.
An RFP, and a timetable, are being worked out, she said.
Funding will come from short-and intermediate-term fixed income.
Rhode Island's consultant, Wilshire, is assisting in the search.
FLINT, Mich. - The $271 million Genesee County Employees' Retirement System is beginning a major, comprehensive asset allocation study, its first since 1990, including an evaluation of investment policies and objectives, said Warren Vyvyan, retirement coordinator.
"We want to do a long-range look at where we want to be three, four, five years from now," Mr. Vyvyan said.
The fund's new consultant, Asset Strategies Portfolio Services, will assist.
Until the study is completed, the fund will postpone its search to replace CSI Asset Management, which had run a $100 million domestic fixed-income portfolio. CSI is being closed by its parent, Prudential.
The Genesee County fund hired Prudential Global Advisors to run the CSI portfolio on an interim basis until a permanent manager is hired.
George Vitta, Asset Strategies managing consultant, estimates the study could be completed sometime in the fourth quarter, when the fund will begin the process for identifying and evaluating new managers.
PURCHASE, N.Y. - Diversified Investment Advisors has obtained an IRS private letter ruling allowing it to offer a new 401(k) plan design with maximum contributions for highly compensated employees.
The firm is so sure of the plan design it guarantees it will pass discrimination tests.
Diversified is offering a non-qualified, deferred compensation or top-hat plan for highly compensated employees, in addition to a qualified 401(k) plan.
Highly compensated employees will defer their desired level of contributions into the top-hat plan throughout the year. On Jan. 31 of the next year, Diversified will generate preliminary discrimination tests and determine the exact level of allowable 401(k) contributions for these employees.
The maximum amount of pre-tax 401(k) contributions and employer matches will be transferred to the 401(k) plan, while the balance remains in the non-qualified plan.
Jack Boyce, a Diversified spokesman, said the new design avoids many of the risks and potential penalties of failing discrimination tests.
Administration is easier, he said, because the company does not have to run projections all year to monitor contribution levels, and will not have to conduct complicated calculations of employee refunds when discrimination tests fail.
ETOBICOKE, Ontario - Anticipating the completion of a major asset allocation study, the C$200 million (U.S.$144 million) Goodyear Canada Inc. pension fund may make its first allocation to real estate, said Barry W. Gilmour, manager-pension fund administration.
"I'm sure we will seriously consider adding real estate," he said. The initial allocation could be 5%, he said.
Some years ago, real estate was part of the fund's target allocations, although no investments were made, and then it was dropped from the targets when the property market fell.
Mr. Gilmour expects the study to be finished by August, when the fund will then proceed to determine what searches it will conduct.
NEW YORK - Chase Manhattan Bank and M.D. Sass Investors Services are creating a partnership on short-term investment management, including advising short-term investment funds, cash collateral accounts related to securities lending portfolios and separate institutional accounts for Chase clients.
The deal will make Sass' investment expertise available to Chase clients.
The transaction is expected to close in July subject to regulatory approvals. Terms were not disclosed.
The partnership, called Chase & MD Sass Partners, will extend the array of services offered through Chase Asset Management, which includes the Vista family of mutual funds. Hugh R. Lamle, executive vice president and a principal of M.D. Sass, will be president, chief executive and CIO.
