SAN RAFAEL, Calif. - The nearly $500 million Marin County Employees' Retirement Association is undertaking a major restructuring, including making its first moves into actively managed specialty domestic equities, international equities and global fixed income.
Norman Klein, retirement administrator, said the association plans to conduct manager searches in eight asset areas, involving close to 90% of its total fund, over the next year, the first search beginning by January.
The restructuring is the result of a major assets-liabilities study the association conducted with Asset Strategy Consulting, Los Angeles.
The association hasn't determined how the restructuring will affect existing managers. Some managers will be retained, others will be reassigned and some may be dropped, Mr. Klein said.
The Marin fund's largest manager, Wells Fargo Nikko Investment Advisors, San Francisco, runs a $44 million Standard & Poor's 500 index fund, a $72.9 million Standard & Poor's 500 value equities fund, and a $46 million Lehman Brothers government corporate bond index fund.
Its second largest manager, Hanson Investment Management Co., San Rafael, runs $124.8 million in active domestic equities.
Of its other managers, Loomis Sayles & Co., Boston, and GMG/Seneca Capital Management, San Francisco, run respectively $92.4 million and $53.4 million in active domestic fixed income. Woodmont Realty Advisors Inc., Belmont, Calif., runs $51.8 million.
The association also runs in-house $5.1 million in mortgages and $1 million in cash equivalents.
The restructuring gives the fund new asset allocation targets of:
Domestic equities: 10% core, 22% large-cap value, 5% large-cap growth and 5% small cap;
International equities: 13% Europe Australia Far East index mandate, 5% emerging markets;
Global fixed income: 5%;
Domestic fixed income: 23% core; and
Real estate: 12%.
The fund's previous allocation targets were: 40% domestic equities, 40% domestic fixed income, 5% international equities, 12% real estate, and 3% cash equivalents.
The fund expects to begin the restructuring with searches in two areas - domestic large-cap value equities and domestic core fixed income - in the next six weeks.
The association has no plans to send out requests for proposals.
Following those searches, Mr. Klein said the fund plans to search in 1996 for managers in several other areas.