ADELPHI, Md. - University of Maryland officials are searching for a domestic equity manager and a consultant for the $120 million endowment.
Current equity manager Alex. Brown Investment Management runs the $100 million S&P 500 equity assignment and will be allowed to bid, said David Forman, manager of endowment funds. The investment committee of the school is required to bid the portfolio every five years. RFPs for the equity manager slot are due Feb. 18.
The allocation may be lowered depending on the outcome of an asset allocation study, which would be conducted by the consultant. The endowment has not had a full-time consultant for a couple years, Mr. Forman said. The board is informally asking for proposals from consultants; no deadline has been set.
TUCSON, Ariz. - Trustees of the $336 million Tucson Supplemental Retirement System are preparing RFPs for a consultant search that could be launched in March, said Michael Parisi, treasury administrator.
Once hired, the consultant will have a three-year contract to perform an asset-liability study and subsequent manager searches for the $336 million defined benefit plan.
Canadian Forces Fund
OTTAWA - The Canadian Forces Non-Public Fund Employees Pension Fund could hire its first specialty managers and increase its allocation to equities, said Gerry Haman, chief financial officer, Canadian Forces Personnel Support Agency, Ottawa.
He suggested the fund, with C$50 million (U.S. $37 million) in assets, could hire up to three specialty managers for Canadian and international investments.
The fund also is considering increasing its allocation to Canadian equities, now 37%of total assets. The allocation could be boosted to 50% assets would come from Canadian fixed income, now 38%of the fund. The fund also holds 18%of assets in non-Canadian equities.
A decision on both issues could be made in April.
Mercer is assisting.
California State Teachers
SACRAMENTO, Calif. - Trustees of the California State Teachers' Retirement System approved issuing an RFP in March for an international equity securities lender.
The $68 billion fund's master custodian, State Street Bank, already does some international equity securities lending as part of its master custody contract with the system, but fund officials believe they can increase their lending income and diversify securities-lending styles by adding another lender.
CalSTRS plans to limit its lending to securities within its Morgan Stanley Capital International Europe Australasia Far East Index portfolio, which will have an estimated value of $8 billion this year. Firms must have an average daily balance of securities lent or borrowed of more than $1 billion to qualify.
BIRMINGHAM, Mich. - The Birmingham Employees' Retirement System might increase the amount it invests in equities, said Thelma Grabner, city treasurer.
The $69.5 million pension fund now invests 50%of assets in stocks and has a ceiling of 55% The recent market boom in the stock market prompted the investment committee to consider the increase, she said. A decision could be made in March.
WOODLAND HILLS, Calif. - Litton Industries, Woodland Hills, is considering new options for its $750 million defined contribution plan.
The investment committee is looking to consolidate some options and add two or three later this year, said Christopher Ranieri, director of pensions and group insurance.
The fund has four options in place now that are managed by five managers: an equity fund jointly managed by Jennison Associates and Tukman Capital Management; a bond fund run by MacKay-Shields Financial; a GIC fund handled by Bankers Trust; and a money market fund run by Brown Brothers Harriman.
LINCOLN, Neb. - Lincoln Telecommunications is reviewing the asset allocation of its $220 million defined benefit plan, said Michael J. Talvin, vice president and treasurer.
The review will look at U.S. equities investments. Mr. Talvin would not say when the study is scheduled to be finished or speculate on changes to follow.
Bankers Trust and Performance Analytics are assisting.
Virginia Retirement System
RICHMOND, Va. - The Virginia Retirement System, Richmond, is looking at whether to invest in hedge funds. The $24 billion fund, which already has an extensive alternative investments program, hired a new consultant to analyze the feasibility of hedge funds and other alternative investments it is not in already, said Mike T. Cleary, investment officer-alternative investments.
With $1.2 billion in invested assets and $2 billion in commitments to alternative investments,hedge funds are one of the few untried areas, he said. Brinson Partners Inc., Chicago, advises the fund on investments in funds raising $200 million or less. Decisions on larger funds are made in-house.
The new consultant, which Mr. Cleary declined to name, also will examine the viability of Virginia's former target for alternative investments. A list of other potential alternative investments should be ready in the next several months.
GREENVILLE, S.C. - JPS Textiles Group is considering an international equity fund and a small-cap equity fund for its $50 million 401(k) plan.
The plan currently has five options through Fidelity Investments, its bundled provider. Fund officials have not ruled using funds from outside managers but are satisfied with Fidelity's performance so far.
Mercer is assisting. A decision is expected in about six weeks.
Wyoming Farm Loan Board
CHEYENNE, Wyo. - The State of Wyoming Farm Loan Board is looking for equity managers and a commission recapture firm for its $3.2 billion fund.
Trustees will choose a commission recapture firm and a value equity manager after interviews at its April meeting. A decision on growth equity managers would follow at the May meeting. A list of finalists for both searches is expected in March.
Both equity firms are likely to split about $100 million, said Steven Degenfelder, deputy director.
R.V. Kuhns & Associates is assisting.
PASADENA, Calif. - Ameron International is conducting an asset allocation study with help from Wilshire Associates, the fund's first consultant. A date for completion of the study hasn't been set.
The $126 million defined benefit plan also terminated Collins Associates as a mid- and small-cap manager, moving its $35 million portfolio into existing manager Bank of America's large-cap equity index fund and bringing that account to $48.7 million.
The need for more diversification prompted the termination of Collins, said Jane Brown, benefits manager.