ALL ACTIVE domestic equity and passive U.S. small-cap equity managers in the databases of Wilshire and CalPers are expected to be invited to participate in CalPers' U.S. equity RFP. Ads for other managers also are expected. The RFP from the $110 billion California Public Employees' Retirement System, Sacramenta, comes up for approval april 14.
It is unusual vecause of the unlimited scope of investment styles. Tentative date for the release is April 15. The tentative deadline for returns is may 7. Finalists are expected to be chosen in September and October, with contracts awarded in January. Multiple firms will be active U.S. equity managers and one small-cap passive manager are expected to compete.
ONLY 53% of corporate pension funds with $1 billion or more in assets hired managers in the year ended October, down 67% for the period ended four years ealier, according to new data from Greenwich Associates. Overall, the number of institutional investors - including public and corporate funds and endowments - signing up managers fell to 42% for the year vs 46% four years ealier.
The number of large corporate funds terminating a manager fell to 49% for the year vs. 52% in 1992. For institutional investors overall, terminations were 34% last year vs 30% in 1992, the survey of 1,609 funds showed.
OREGON PUBLIC Employes' Retirement System officials expected to decide next week whether to commit up to $100 million to JER Real Estate Partners a fund run by J.E. Robert Co. focusing on substadard and non-performing loans and distressed assets from banks and insurers. The pension system has assets of $24 billion.
CHICAGO PARK Employees' Annuity & Benefit Fund terminated Abacus Financial Group for $6 million in core fixed income, said joseph Fratto, executive director for the $515 million fund. The termination was for performance reasons, he said. Abacus officials were unavailable for comment. The assets will be divided among existing managers.
MONEY MANAGEMENT transactions are becoming increasingly complex and global, a study by Investment Counseling says.
Startups, liftouts and joint ventures are becoming more common in the United States and abroad, and buyers are taking smaller stakes in firms, the report says.
Deals are becoming more strategic and less driven by adding mass, said report, which questions whether the industry is consolidating or just reorganizing. The 50 largest money managers handled 43% of the total invested assets in the United States in 1996, compared with 50% in 1989.
NAVELLIER & ASSOCIATES' institutional clients have done little more than put the manager on a watch list following the ouster of the firm as manager of an aggressive small-cap mutual fund. By contrast, investors have pulled at least $40 million from the Navellier Series Fund-Aggresive Small Cap Equity Portfolio, which had about $160 million. Investors began to cash out after the fund's independent trustees forced Mr. Mavellier to resign as portfolio manager earlier this month.