LOS ANGELES - The Los Angeles City Employees' Retirement System issued two requests for proposals - one for an enhanced S&P 500 index fund manager to run $300 million to $500 million and one for a large-cap value enhanced index manager to run more than $200 million.
Responses to the enhanced S&P 500 RFP must be submitted to the $5.8 billion fund by Jan. 3; responses to the enhanced large-cap value RFP are due Jan. 10.
To qualify for the enhanced S&P 500 assignment, a firm must manage at least $800 million in the strategy and have at least $2 billion in total assets. Managers responding to the large-cap value RFP must manage at least $400 million in that strategy and have at least $1 billion in total assets.
Funding for both new managers will come from existing index fund managers; they weren't identified.
Central Maine Power
AUGUSTA, Maine - Central Maine Power Co.'s $125 million plan has begun an asset allocation and asset-liability study, said Kathleen Case, manager-human resources.
The study "might prompt us to make asset allocation changes and add new managers," she said.
The fund also is looking at adopting a cash balance plan. Actuarial Sciences is assisting; the study could be finished by March.
Prompting the study is a 30%or so drop in the company's work force since 1991 caused by layoffs, early retirements and other downsizings.
The fund's current allocation is roughly 40%equities, 47%fixed income and 12%international equities.
LONDON - Texaco Ltd.'s 300 million pounds ($500 million) pension fund is awaiting an asset/liability study that is expected to modestly boost the fund's allocation to equities, said Mahesh Saklani, general manager, corporate finance and special projects.
The study, expected by year end, is being performed by Wilshire Associates, Santa Monica, Calif. It's too soon to say whether there will be any manager changes.
"In terms of where we go with our managers, we'll just wait and see," Mr. Saklani said.
The fund is 53%invested in U.K. equities, 14%overseas equities, 13% U.K. fixed income, 10% index-linked gilts, 7% property and 3% cash.
ITHACA, N.Y. - The $1.9 billion Cornell University endowment is looking for an additional domestic large-cap growth manager, said James Clarke, associate treasurer for investments at Cornell.
The search is in the early stages, he said. The investment committee is working with Cambridge Associates to narrow the list of potential managers. Selection is expected in three or four months. The size of the portfolio has not been determined.
The endowment has one large-cap growth manager now. Mr. Clarke declined to name the firm.
Funding will come from existing value managers, but none will be terminated. The portfolio is too heavy in value and the move to hire a large-cap growth manager is to balance the equity portfolio.
Culinary and Bartenders Fund
LAS VEGAS - The Southern Nevada Culinary and Bartenders Pension Fund is conducting an asset allocation study and reviewing its investment policies, said Wolf Elliot, chairman of the $1 billion fund's investment committee.
The study is looking at, among other things, increasing the fund's equity exposure - now 40%- and investing in real estate for the first time.
The fund will review the study in late March; Marco Consulting Group is assisting.
CSA Health System
CLEVELAND - The $230 million foundation of CSA Health System hired Mercer Investment Consulting as consultant, said John Faulstich, senior vice president of finance.
Among Mercer's first duties: develop a new asset allocation policy and search for a master trustee for a new foundation that combines the Sisters of Charity Foundations of Cleveland, Canton (Ohio) and South Carolina and the Saint Ann Foundation.
Trustees of each foundation and the CSA treasurer comprise the investment committee, which will approve the new allocation policy and master trustee, he said.
The trustee search should begin before the end of the year, with a decision in late January.
Stichting Shell Pensioenfonds
RIJSWIJK, The Netherlands - The 20 billion guilder ($11.5 billion) Stichting Shell Pensioenfonds is conducting an asset-liability study that might result in increasing equities and decreasing real estate, said Kees van Rees, managing director.
Mr. van Rees cautioned, however, an expanded equity allocation does not mean the fund will hire additional managers. "We have substantial in-house investment capacity," he said.
Sources suggest Shell would go to 65%in stocks, up from 55% But Mr. van Rees said the study will not be completed until the end of the first quarter, and trustees would have to approve any recommendations.
He said the study also might result in a decrease in the fund's real estate allocation, which is about 15% The study is being conducted internally, with the assistance of Gouda-based Ortec.
TACOMA, Wash. - The Tacoma Employees' Retirement System is considering high-yield bond, emerging market and REIT investments, said Patricia Pabst, retirement director.
At a recent asset allocation workshop and quarterly manager's meeting, the $450 million pension fund's board accepted a recommendation from consultant Wilshire Associates to look into adding exposure to those strategies.
A decision is expected in February.
PHILADELPHIA - The Philadelphia Municipal Pension Fund has put two money managers on its watch list.
Dreyfus Management, a top-performing small-cap stock manager, was put on its list because of the recent death of Tom Frank, a senior portfolio manager, whose responsibilities have been taken over by Paul Kandel, senior sector manager. Emerging markets manager Montgomery Asset Management was added to the list because portfolio manager Tom Haslett left to join Putnam.
While on the watch list, the pension fund will monitor the firms to see whether the departures affect performance.
In a separate action, the $2.8 billion fund terminated Newbold's Asset Management, a large-cap manager, because of performance, said David A. Volpe, first deputy controller for the city, and a fund trustee. F. Jeffrey Van Orden, senior vice president at Newbold's, declined to discuss the matter. David Jennings, president, didn't return phone calls.
Readers Digest foundations
PLEASANTVILLE, N.Y. - Two foundations officially kicked off searches for real estate and/or alternative investment managers. The DeWitt Wallace-Readers Digest Fund and the Lila Wallace-Readers Digest Fund, with assets as of year-end 1995 of $1.1 billion and $825 million, respectively, are looking at real estate and oil and gas investments.
"The process is still developing. We have been meeting with several prospective managers. We don't have a short list. We will be doing a review over the next several months," said Rob Nagel, chief financial officer of both funds.
Cambridge Associates is assisting.
He said a decision probably will be made by June. No decision has been made on what vehicles will be used or how much to allocate.
WATERFALL, Maine - The $164 million Colby College endowment fund is looking for alternative investments to commit money to in the next year or so, said Douglas Reinhardt, treasurer.
The fund wants to meet its 15%target allocation to alternatives. The endowment is at 12%and wants to get a good group of commitments in which to invest.
Potential firms must be well established and offer venture capital, distressed, mezzanine and buy-out partnerships, Mr. Reinhardt said. Fund officials are making up a shortlist of potential commitments with the help of Cambridge, he said.
BISMARCK, N.D. - The $100 million 401(k) plan of MDU Resources Group Inc. will conduct a major study of its investment option diversification and consider expanding the number of portfolio choices and managers, said Douglas A. Mahowold, assistant treasurer and assistant secretary.
Company officials may hire a consultant to assist them; that decision is expected in February.
The study will consider adding new investment options to the plan and searching for new managers.
NYC Deferred Comp
NEW YORK - The $2 billion City of New York Deferred Compensation (457) plan is in the middle of four money manager searches, said Lou Porpora, contract supervisor and operations manager.
*A small-cap equity manager. AIM is the incumbent, running $145 million. A decision is expected in May.
*An intermediate bond manager. A decision is expected by Jan. 15.
*A balanced manager for a $33 million fund, now run by Chancellor Capital Management, which isn't bidding on the new contract. A decision is expected in February.
*An international stock manager. Morgan Stanley, the incumbent for the $39.5 million portfolio, is among the bidders. A decision is expected in early March.
Hotel Severance Fund
ATLANTIC CITY, N.J. - The $37 million Hotel Employees and Restaurant Employees Severance Fund, Local 54, is conducting a "top to bottom" review of its money managers and investment guidelines, said James F. Flanagan, trustee. Under consideration is whether to invest in stocks.
"Periodically, it's only prudent that trustees evaluate their money managers," Mr. Flanagan said. All assets are in fixed income now, managed by Merrill Lynch and Investment Advisers Inc., because it "must remain fairly liquid since you never know when there will be a layoff in the industry."
Marco Consulting is assisting.