The California Public Employees' Retirement System, Sacramento, approved an exception to minority, women and disabled veteran contracting requirements for its U.S. equity money manager RFP.
The exception allows managers to meet the requirements after they are hired by the $110 billion fund. Firms will have eight weeks after being funded to meet the requirements. Previously, firms had to meet the requirements to be finalists in the selection process.
The RFP involves more than $6 billion in U.S. equity assets.
The PBGC and Del Monte Corp. agreed today to improve the funding of Del Monte's three pension plans, underfunded by $90 million. Under the agreement, the company will contribute $55 million in cash over five years. Del Monte, San Francisco, has $260 million in assets and $350 million in liabilities in the three plans, which cover more than 6,700 workers and retirees in eight states. Most of the company is being purchased by Texas Pacific Group and other investors.
Public School Teachers Pension & Retirement Fund of Chicago approved investing an additional $10 million with Schroder at today's board meeting. The money will be placed with Schroder's CII Fund, which is a real estate fund. The pension fund has about $20 million in Schroders C Fund. Assets will come from large-cap equity and core index fund investments; no managers will be terminated. Mercer assisted.
The $7.28 billion fund also changed its investment policy and will allow active fixed-income managers to invest in Rule 144(a) securities. The securities would be subject to the same guidelines as corporate securities.
Privatization of Social Security is a ``crazy'' idea, Rep. Charles W. Stenholm, D-Texas, said at the National Employee Benefits Institute's conference in Washington today. Mr. Stenholm, co-chair of the House Public Pension Reform Caucus, favors small changes to the system, including downward revisions to the Consumer Price Index. A 0.8% decrease in the CPI would increase the solvency of the system by 13 years, he said.
Montgomery County Employees' Retirement System, Rockville, Md., will review the performance of Systematic Financial Management at its June 6 board meeting.
Systematic was hired last summer as interim core equity manager after Mitchell Hutchins was let go. At the time, the $1.3 billion fund gave $50 million to Systematic - two-thirds of the $75 million run by Mitchell Hutchins. The balance went into an S&P 500 index fund.
Although the board hasn't yet voted on the issue, Executive Director Julie Dellinger said the fund has been pleased with Systematic's performance and expects the board will give Systematic the rest of the $75 million.
Texas Volunteer Firefighters Pension Fund, San Antonio, will conduct searches for four equity managers during the next eight months. The $20 billion fund expects to hire a separate account manager or invest in a mutual fund for a $3.7 million large-cap growth manager by June; a $2 million international equity fund by September; $1.5 million for small- to midcap equities by December; and $1.4 million for small- to midcap growth equities by December. Wier Labatt, board member, said the searches will be conducted internally.
The City of Montreal pension funds, with C$1.9 billion (U.S. $1.4 billion), are in the midst of searches for a Canadian large-cap manager and a Canadian bond manager, and plans on searching for a U.S. equity manager, said Bertrand Goudreault, pension fund controller. Also, Montreal might hire a currency overlay manager to convert the Canadian bond portfolio to a global portfolio, he said
He said fund officials will consider both index-plus managers and high return managers for the bond hiring. Foreign exchange managers being considered for overlaying the bond manager include: Trilogy Capital Management, Primus Capital and Parker Global Strategies. The large-cap search already has been narrowed to six or seven managers.
Montreal also recently hired Knight Bain Seath & Holbrook to run C$50 million to C$100 million in small-cap Canadian equities.
SEI Canada is assisting.