The $59 billion California State Teachers' Retirement System, Sacramento, is expected next week to approve a proposed RFP that would permit money managers to form joint ventures to run a passive emerging market index fund portfolio.
The joint venture feature is important for money managers that by themselves cannot meet all of the minimum requirements for the job. One requirement stipulates that the firm or joint venture have a minimum of $500 million in assets under management, of which at least $100 million is in passively run emerging market equities. The firm or joint venture also would have to have client service capabilities in North America as of Dec. 31, 1995. The fund is seeking a maximum of two firms or joint ventures to invest an amount estimated to be more than $300 million. A contract is expected to be signed next June or July. The RFP is set to be mailed in December.
Officials of the more than $15 billion Pennsylvania State Employes' Retirement System, Harrisburg, scheduled a meeting today with officials of Dunedin Fund Managers, the Edinburgh, Scotland, firm that reportedly lost two top officials.
According to published reports, Chairman Leslie Melville will leave Dunedin at year's end, while Alan Kemp, the deputy chief executive, already has quit. In July, the firm announced Investment Director Gordon Anderson had left and was replaced by Richard Muckart.
Peter Gilbert, CIO of the Pennsylvania fund, said ``we've set up a meeting to find out what the story is. Based on what Dunedin people have to say, we'll make a decision about the firm.'' Any decision probably won't come immediately after the meeting, because fund officials have to discuss the meeting's outcome with the board.
Dunedin runs about $250 million for the fund in a small-cap international equities portfolio. Stewart Carracher, manager-marketing and client services in Dunedin's Chicago office, had no comment.
