BOISE, Idaho - The $3.2 billion Idaho Public Employee Retirement System is undertaking a sweeping review of both its internal operations and its entire use of external providers of investment services.
The fund is evaluating its entire operations, policies, procedures, asset allocation, investment portfolios, money managers and consultants - "everything," emphasized Robert Maynard, chief investment officer.
In addition, the review will suggest more optimal courses for the future internal and external operation of the fund.
The fund hired Bear Stearns Fiduciary Services Inc., Washington, to conduct the extensive review.
Mr. Maynard expects a report in September, although he said it possibly could take longer. "We want to get it right," he added.
The review was prompted in large part by changes in the composition of the five-person board. Two new board members have been appointed and the third new member is expected to be named in time for the September meeting.
He said the board, which will want a thorough review of the fund, will have new ideas and recommendations for changes in policies and allocations.
Mr. Maynard expects the fund to make changes over the next 18 months.
The fund has an asset allocation of 48% domestic equities, 12% international equities, 33% domestic and global fixed income, 6% real estate equity and 1% cash.
Its managers are:
For domestic equities: Chancellor Capital Management Inc., New York; Columbus Circle Investors, Chicago; Mellon Capital Management Corp., San Francisco; and Mountain Pacific Investment Advisors, Boise.
For international equities: BEA Associates, New York; Pareto Partners, New York; Rowe-Price Fleming International Inc., Baltimore; Schroder Capital Management International Inc., New York; and TCW Group Inc., Los Angeles.
For real estate; O'Connor Group, New York; Cabot Partners L.P., Boston; LaSalle Advisors Ltd., Chicago; Prentiss Properties, Dallas; and Prudential Asset Management Group, Newark, N.J.
For venture capital and private equity the fund uses Saugatuck Partners.
The review also includes an evaluation of Dorn Helliesen & Cottle Inc., Berkeley, Calif., the fund's general consultant.