SAN ANTONIO, Texas - The approximately $800 million San Antonio Fire & Police Pension Fund is moving forward on its search for a U.S. small-capitalization value manager, but its expected hiring of an emerging markets manager probably won't occur until late in the third quarter.
The fund expects to receive a list of 15 to 20 candidates from consultant Towers Perrin for the $30 million small-cap assignment; the hiring is expected by the end of June. The fund does not expect to receive a similar list of emerging markets managers until mid-August, said Weir Labatt, executive director.
Assets for both assignments will come from reducing the allocation to U.S. large-cap stocks. The fund expects to terminate one manager and reduce the allocation of another, but Mr. Labatt did not identify the managers.
Oklahoma Teachers
OKLAHOMA CITY - The $3.6 billion Oklahoma Teachers' Retirement System, Oklahoma City, may conduct a search for an active small-cap equity manager this year, said Tommy Beavers, executive director.
Mr. Beavers said about $165 million now invested in a small-cap index fund with Bankers Trust, the fund's custodian, probably will be placed with the manager before 1998.
Arvin Industries
COLUMBUS, Ind. - Arvin Industries is searching for a domestic value equity manager to handle $20 million of its $250 million defined benefit plan.
The search should be completed by the end of June, said A.R. Sales, treasurer. Hewitt Associates is compiling a list of managers to consider, and Arvin also will add names to the list.
The new manager will replace Newbold's Asset Management, which was terminated last year.
American Airlines
FORT WORTH, Texas - American Airlines is searching for a master trustee to replace NationsBank, which is exiting the business.
NationsBank is trustee for the company's 401(k) plan, defined contribution plan and defined benefit plan, with a combined $9.1 billion in assets. A new master trustee should be hired sometime thie year, said Nancy Eckl, vice president of AMR Investment Services.
San Francisco City & County
SAN FRANCISCO - The $7.4 billion San Francisco City & County Employees' Retirement System is expected to approve an RFP this month in a search for a manager investing in below-investment-grade commercial mortgage-backed securities.
No amount has been specified, and the search is expected to be completed by December. Asset Strategy Consulting is assisting.
Teamsters Local 142
GARY, Ind. - Teamsters Local 142, Gary, is considering adding a Standard & Poor's 500 index portfolio with a growth tilt within the next calendar year, said Jay Smith, fund manager.
The $215 million defined benefit fund might add another manager to its roster, which includes a small-cap manager, three balanced managers and a real estate manager. It likely will be on the agenda at the trustees' June 5 meeting.
Also, the union has added a $7.5 million Health & Welfare Fund to be managed by First Chicago NBD.
Nevada College System
RENO, Nev. - The University & Community College System of Nevada is reviewing its fixed-income portfolio and looking at creating an alternative investment allocation for its $175 million endowment fund.
The $40 million fixed-income portfolio has been a "drag on performance," said Tim Ortez, director of banking and investments. Sanford C. Bernstein & Co., New York, is the fund's domestic bond manager and The Common Fund handles global bonds.
Trustees also are considering investing in real estate invesment trust securities and hedge funds to increase returns. The system is allowed to invest up to $10 million in alternative investments but has chosen not to invest in the area so far.
Results of the review are expected May 21. Cambridge Associates is assisting.
Tennessee Valley Authority
KNOXVILLE, Tenn. - The Tennessee Valley Authority, Knoxville, is considering restructuring its more than $500 million 401(k) plan.
The fund now offers 26 investment choices managed by Fidelity Investments. Among the ideas, the TVA is considering adding portfolios managed by other investment firms through the Fidelity network. It also could reduce the number of investment choices overall. The board could make a decision in September.
Teamsters Local 705
CHICAGO - Teamsters Local 705 will select the first small-cap value manager for its $800 million pension fund by June, said Jack L. Hohrein, administrator.
Marco Consulting has been bringing candidates for interviews with trustees.
The source of the $25 million mandate has yet to be determined, but the fund plans on terminating a smaller money manager as part of its restructuring, Mr. Hohrein would not identify the firm.
Allegheny County Port Authority
PITTSBURGH - The Port Authority of Allegheny County pension fund narrowed its search for a real estate investment trust manager to three firms, according to James Shearer, program manager. The firms are AEW Capital Management, Delaware Investment Advisers and INVESCO.
The new manager will be assigned $12 million. Assets will come from a reallocation. The board of the $580 million fund is expected to decide next month.
