SEARCHES & HIRINGS
The $19 billion Maryland State Retirement and Pension System is looking for a high-yield bond manager. The fund hopes to allocate $100 million to the manager and establish the new asset class for it, said Peter Vaughn, executive director. RFPs already have been issued, and Mr. Vaughn said he expects the new firm to be hired before Jan. 1.
The fund's board also approved a $300 million increase to emerging markets.
The fund now holds $300 million in emerging markets, and will increase the allocation by $100 million each month for the next three months, Mr. Vaughn said.
Money to fund the allocation will be taken from the $5 billion allocation to large-cap domestic equities.
No managers will be let go.
The $8.5 billion Massachusetts State Teachers' and Employees' Retirement System and the $6.5 billion Massachusetts Pension Reserves Investment Management Board, both of Boston, will issue separate RFPs in early December for new global custodians.
Both funds' custodial contracts expire July 1, said Collette Chilton, MASTERS' chief investment officer.
MASTERS' current global custodian is Mellon; PRIM's is State Street Bank, said Scott Henderson, PRIM general counsel. The incumbents may respond to the RFPs. While the RFPs are being issued simultaneously, the funds may end up with different custodians, the two officials said. Both funds hope to have the new hire in place by the end of the first quarter next year.
Southern California Permanente Medical Group, Pasadena, Calif., hired Dreyfus Retirement Services to provide daily valued record-keeping services for its two defined contribution plans, which total $800 million. The hire is effective Jan. 1.
Dreyfus will provide all trust, record keeping, administration, voice-response system and employee communication services, replacing North America Trust Co., said Robin Radin, director of physician benefits. The plan is valued monthly now.
None of the investment options offered in either plan will be changed. The $200 million 401(k) plan will continue to offer five Vanguard mutual funds. The $600 million Keogh plan will retain four pooled funds from the Boston Co., one pooled fund from Wall Street Associates, a frozen MetLife real estate pooled fund and a self-directed brokerage option administered by Dreyfus or an employee-selected broker.
Southern California Permanente is considering various options to provide more advanced investment education next year, including individual financial planning services from independent investment advisers, said Ms. Radin