SANTA FE, N.M. - The $7.6 billion New Mexico Permanent Endowment Fund, Santa Fe, likely will be searching for its first external investment managers this year.
The searches are possible because the governor signed legislation this month codifying a constitutional change liberalizing the investment policy, according to Philip J. Archibeck, the state investment officer.
The fund is in the middle of a search for a consultant now . Searches for managers in international equities and domestic small- and midcap equities could begin later this year, after the staff and consultant develop an investment plan.
The fund might move 15% of assets to international and 10% to the small- and midcap stocks over several years. Initially, the allocations could be 5%.
The fund plans to continue to run internally its domestic large-cap equities and fixed income.
The U.S. Congress, which set up the fund when New Mexico became a state, has to approve the plan to change the income distribution. Mr. Archibeck expects approval by June.
San Bernardino County
SAN BERNARDINO, Calif. - The San Bernardino County Retirement System issued an RFP for an active core international equity manager to run about $180 million. Assets will come from a Morgan Stanley Capital International Europe Australasia Far East index fund with BGI Investors. Asset Strategy Consulting is assisting.
RFPs are due about the end of May. A selection is expected in August or September. The fund probably will put out an RFP for an active core real estate manager in June, said Terry Slattery, administrator.
Ohio State Highway Patrol
COLUMBUS, Ohio - The $512 million Ohio State Highway Patrol Retirement System is searching for managers in real estate and active international equities, said R. Dean Huffman, executive director. The system could allocate $10 million to $15 million to real estate and $25 million to international.
DeMarche Associates is assisting. The investment committee is expected to decide on late June.
In real estate, the system is considering both separate and commingled funds. Assets could come from cash flow.
Assets for the new international manager could come from both cash flow and reducing a $25 million international index fund, run by ANB Investment. Mr. Huffman said the system could retain the ANB international index at a reduced level.
MINNEAPOLIS - The Minneapolis Employees' Retirement Fund is searching for a REIT manager and is considering hiring a consultant, its first in more than two years.
Trustees of the $1.2 billion fund decided to go ahead with the REIT manager search after also considering direct real estate investments, said Farouki Majeed, investment officer. It hopes to complete the search by July and could allocate $15 million to the new manager.
In the consultant hiring, Mr. Majeed said that while the board hasn't set a timetable, it could make a decision by July.
St. Olaf College
NORTHFIELD, Minn. - St. Olaf College is searching for a U.S. small-cap equity manager for its $97 million endowment fund.
The new manager would be assigned $10 million. DeMarche Associates is assisting in the search, which the college hopes to close next month, said Linda Roiger, assistant treasurer. Assets would come from Investment Advisers, whose small-cap portfolio would be dropped. Investment Advisers will continue as a manager of a $3.2 million international equities portfolio.
Montgomery County Employees
ROCKVILLE, Md. - The Montgomery County Employees' Retirement System wants to invest $15 million to $20 million in an emerging markets commingled fund, said Julie Dellinger, executive director. The $1.3 billion fund has about 10%of total assets in international stocks with Chancellor LGT and Lazard Freres. Assets will come from Chancellor's portfolio.
RFIs already have been sent to managers. The board hopes to conduct interviews in May and make a choice June 6, she said. Wilshire is assisting.
In June, the system will examine its real estate portfolio - 6%of assets - including assets in maturing closed- and open-end funds, Ms. Dellinger said. The fund has about a third of its portfolio in real estate investment trusts but doesn't want to use them exclusively.
At the same time, the fund also will consider the viability of venture capital, a new asset class.
Texas Volunteer Firefighters
SAN ANTONIO, Texas - The Texas Volunteer Firefighters Pension Fund 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 and are designed for diversification.
City of Montreal
MONTREAL - 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 plan on searching for a U.S. equity manager, said Bertrand Goudreault, pension fund controller.
Montreal also might hire a currency overlay manager to convert the Canadian bond portfolio to a global portfolio, if the strategy is deemed appropriate, he said.
The Canadian large-cap search already has been narrowed to six or seven managers, he said, but the fixed-income search is still open. The bond search should be completed next month. He said fund officials will consider both index-plus managers and high return managers.
Foreign exchange managers being considered for overlays include Trilogy Capital Management, Primus Capital and Parker Global Strategies.
Southwest Gas Corp.
LAS VEGAS - Southwest Gas Corp. will be considering the addition of small- and midcap equities over the next few months.
The $200 million fund invests in large-cap equities and closely mirrors the S&P 500, said Jeff Shaw, treasurer; the additions would help to diversify the fund. Trustees will discuss the possibilities at their next meeting in late September.
DETROIT - The Skillman Foundation is searching for a mid- to large-cap equity manager to handle $60 million.
Officials at the $450 million foundation are considering active and passive managers to replace an unidentified firm that was terminated, said Richard Connell, vice president and treasurer. The search could conclude as early as mid-June. Evaluation Associates is assisting.
HAUPPAUGE, N.Y. - Suffolk County officials will issue RFPs in July for investment managers for the county's $175 million 457 plan, said Ed Erickson, vice chairman of the board.
The three-year contracts of the current providers, T. Rowe Price and Mutual of America, expire on June 30, 1998. T. Rowe offers 20 mutual funds and Mutual of America 17 funds. Both managers will be part of the in-house search. A decision is expected early next year.
SWARTHMORE, Pa. - Swarthmore College endowment is searching for an international small-cap equity manager, said Suzanne P. Welsh, treasurer.
The endowment, which has more than $600 million in assets, hopes to make a decision by July. Further details were unavailable.