CHICAGO - The $1.6 billion Chicago Transit Authority Retirement System is considering investment policy and actuarial changes due to a scheduled early retirement program.
Some 3,000 employees are eligible for the program. The plan is 86% funded but could experience problems due to the early retirement, combined with a six-month moratorium on contributions by both employees and the CTA.
Daniel Perk, executive director, said trustees will be considering manager and policy changes with the help of consultant Wellesley Group and actuary Watson Wyatt at board meetings over the next few months. The fund's current asset mix is 70% equity and 30% fixed income. The fund also invests in real estate, which is divided between equity and fixed-income categories.
St. Louis Police
ST. LOUIS - The $560 million St. Louis Police Retirement System will be performing a complete manager review, concluding with searches, a spokesman said.
The move follows the termination of Boatmen's Trust Co., which had managed $268 million in fixed-income and balanced portfolios. Boatmen's was terminated when portfolio managers responsible for the fund's portfolio left to form Rockwood Capital Management.
SEI will assist with the review and searches, the spokesman said. Existing managers Mississippi Valley Advisors and Commerce Bank will temporarily oversee the assets, he said.
Boatmen's will continue as custodian pending a decision by parent NationsBank on the buyer of Boatmen's custodial assets, the spokesman said.
BRUSSELS - The Belgacom Pension Fund, Brussels, is seeking bids for an 8 billion Belgian franc ($230 million) passively run multiasset mandate. The fund has 65 billion francs ($1.87 billion) in assets. The portfolio will be funded from cash flow. The deadline for submissions is April 16 and should be addressed to Managing Director Philip Neyt and Managing Director-CIO William Van Impe.
Seattle City Employees
SEATTLE - The $1.1 billion Seattle City Employees fund issued a request for proposals for a fixed-income manager.
Fund officials want one manager for the entire $300 million bond portfolio. Phoenix Duff & Phelps manages about $200 million and the rest is run internally, said Roger Howeiler, executive director. Phoenix will participate, he added. A manager is expected to be in place by July 1. Wurts & Associates is assisting.
OLYMPIA, Wash. - The $37 billion Washington State Board of Investment is reviewing its entire domestic equity program. Manager contracts are close to expiring; they're "to the point where we need to review the program," said Nancy Calkins, senior investment officer for equity and program management.
Manager searches could begin by late summer. One passive and three active managers currently run the $12.5 billion equity component.
Wilshire Associates is assisting.
Los Angeles City Employees
LOS ANGELES - The $5.7 billion Los Angeles City Employees' Retirement System is issuing a request for proposals for a custodian and securities lending firm.
Candidates must have at least $100 billion in tax-exempt assets. Northern Trust, the $5.7 billion fund's current custodian and securities lender, is expected to be a candidate. Asset Strategy Consulting is assisting.
Responses are due April 11. Semi-finalists are expected to be selected by May 16 and a finalist by June 24. A three-year contract is expected. The securities lending contract is expected to be negotiated separately from the custodial contract.
California State Teachers
The board then could make adjustments to the allocation, said James Mosman, chief executive officer. The fund's $7 billion tactical asset allocation fund also could be adjusted or eliminated.
The board also expects to interview finalists for the chief investment officer position on April 10. Mr. Mosman said he couldn't say how many candidates will be interviewed because the search is still in progress. One of the candidates is expected to be current CIO Thomas E. Flanigan.
Oakland Municipal, Police
OAKLAND, Calif. - The Oakland (Calif.) Municipal Employees' Retirement System and the Oakland Police & Fire Retirement System, with $800 million in combined defined benefit assets, directed their joint consultant, Wyatt, to conduct asset allocation reviews of each plan.
Walter L. Johnson, director-retirement systems, did not give a time frame for completion of the reviews, but said the systems are likely to make manager changes based on the studies later this year.
FALMOUTH, Mass. - The $35 million Falmouth Retirement System is accepting requests for information for a balanced portfolio manager. Responses are due April 14. All fund assets now are managed by Bear Stearns Asset Management, New York, in a 60/40 equity-bond portfolio. Bear Stearns is expected to bid. Hannah Group is assisting.
Jesse Smith Noyes Foundation
NEW YORK - The $65 million Jessie Smith Noyes Foundation Inc. is searching for hedge fund managers, said Stephen Viederman, president. It could seek three managers. Officials could make a choice in April.
Foundation officials could allocate $5 million to the area. Decisions will depend on the attractiveness of the investments. Assets would come from a reallocation.
Prince Georges County
LARGO, Md. - Officials of the $500 million Prince Georges County (Md.) pension fund will review the fund's asset allocation following a study by Watson Wyatt Investment Consulting, said Kathy Colbert, retirement administrator.
The board could make a decision at its May meeting, she said. Fund officials also are conducting their annual manager review and paying particular attention to real estate.
Board members will consider an international allocation, which is not officially part of the portfolio although some international holdings are held by the fund's domestic managers, she said.
The fund's current allocation is 60% stocks, 35% fixed income, 3%real estate, and 2%cash.
Chicago Municipal Employees
CHICAGO - The $4.2 billion Chicago Municipal Employees Annuity and Benefit Fund is considering the addition of managed futures to its asset mix. The fund will begin by asking four firms to make presentations at a future board meeting. Three firms the fund will be looking at are RXR, Dean Witter and Prudential, said James Stack, executive director.
"It's not something were going to do tomorrow, but we definitely want to take a look at it," he added. Becker, Burke Associates is assisting.
Oklahoma Gas & Electric
OKLAHOMA CITY - Oklahoma Gas & Electric could add four additional mutual funds to its $170 million defined contribution plan. The plan currently has eight options provided by Fidelity Investments, and it is looking to fill the gaps in asset classes with a different manager, said Sonny Lane, manager, employee benefits.
The board will discuss the issue at its July meeting. Dean Witter Consulting is assisting.
HARTFORD, Conn. - The $750 million Hartford Employees Retirement System will search during the next three months for international equity managers.
The fund will allocate about $75 million to the new asset class. The pension commission will conduct the search using Callan Associates' money manager database, said Kathleen Palm, assistant city treasurer. A total of $60 million will go to one or two active managers and $15 million will go to a passive manager, she added.
Finalists are expected to be chosen by mid-May with new managers in place by July 1.
HOUSTON - Pennzoil Co. is considering adding international and small-cap equity options to its $172 million 401(k) plan.
No manager searches scheduled, said Carolyn Van Dyke, financial analyst. The combined hourly and salaried workers plan has seven options.
STAMFORD, Conn. - The $185 million Charles E. Culpeper Foundation is considering investments in real estate investment trusts following the termination of a small-cap value equity manager.
The board also could replace the manager or run the $20 million portfolio in-house, said Boris Wessley, comptroller. He would not name the manager, who was terminated for performance, he said. The board will make a final decision on how to invest the assets at its June 11 meeting. Cambridge Associates is assisting.
Twin Cities Pipe Trades
ST. PAUL, Minn. - Pipe Trades Twin Cities Pension Fund is considering changing its $215 million supplemental cash balance plan into an employee-directed plan.
Trustees will be discussing over the next three months the option of hiring plan vendors, said James J. Hynes, executive administrator.
The supplemental plan now has four managers: Dean Witter InterCapital; First Asset Management; Voyageur Asset Management; and Cronin. No searches have been scheduled, he said.
Ann Arbor Employees
ANN ARBOR, Mich. - The $300 million Ann Arbor (Mich.) City Employees Retirement System will look at its domestic fixed-income portfolio over the next few months. Officials will be analyzing the fund's 40%bond allocation and its two portfolio managers, Lexington Global Asset Managers and Schwartz Investment Counsel, said Robb Hubbs, retirement administrator.
The analysis is the last part of a portfolio review that has been going on for about 18 months. Callan Associates is assisting.
Arizona Retirement System
PHOENIX, Ariz. - The $15.5 billion Arizona Retirement System has begun a thorough asset allocation study. The review, to be completed in June, is being done internally, said Paul Matson, senior investment manager. He doesn't expect many changes as a result of the review. The current allocation is 45%stocks, 40% bonds and 15% international stocks.
Bay Area Painters & Tapers
SAN FRANCISCO - The Bay Area Painters & Tapers Pension Fund Trust, with $300 million in assets, could replace a balanced manager that runs $60 million to $70 million.
Trust officials have been disappointed with the manager's performance during the run-up in the stock market, according to Alex Lawrence, chief financial officer. He would not name the firm but did say that any manager change would be made in the next three to four months.
Penn Traffic Co.
SYRACUSE, N.Y. - The Penn Traffic Co. is studying changes in the design and manager lineup of both its $100 million 401(k) plan and $300 million in defined benefit plans. The company is in the early stages of talking to vendors, said Bernadette Barber, director of compensation, benefits, payroll and HR systems. The company now uses PanAgora Asset Management for its 401(k) plan and nine defined benefit plans. She expects to be ready to implement changes within six to eight months. Coopers & Lybrand is assisting.
University of Pennsylvania
PHILADELPHIA - The University of Pennsylvania endowment fund will be going into alternative investments in the next year, said Philip Yarmolyk, investment analyst.
The $2.3 billion fund is compiling a list of firms and will meet again in early May. It is too early to determine specific allocations, though 5%to 6%of assets is possible, Mr. Yarmolyk said. Cambridge Associates is assisting.
Fulton County Retirement
ATLANTA - The $625 million Fulton County (Ga.) Retirement System named three finalists in its search for a value manager.
Sanford C. Bernstein & Co., Dodge & Cox and Miller, Anderson & Sherrerd will be interviewed in the first week of April, with a hiring expected April 9. Assets for the $50 million allocation will come from an existing manager, which a fund official would not identify.
NM At its March board meeting, a new target allocation of 20%to international equities was approved, up from 10%. Funding will come from investment income and bonds. Changes in money managers are not expected. Watson Wyatt assisted.