LOS ANGELES CITY Employees' Retirement System extended for one year its contract with W.R. Lazard, which manages a $176 million intermediate term government bond index fund for the $6.2 billion system. however, the contract could be terminated if LACERS' portfolio manager at Lazard resigns. The contract also could be terminated if the New York City Employees' Retirement System, the firm's biggest client, pulls out some of its money managed by Lazard, or if the LACRES staff deems termination appropiate.
The system also gave contract renewals to two other firms Lincoln Capital, which runs a $473 million Lehman Intermediate Government Corporate fixed-income index portfolia, and Barclays Global investors, which runs a $430 million S&P 500 fund for LACERS. The Lincoln Capital index fund contract is for three years, the active core bond fund contract is for one year. Barclays' contract is for three years.
CONNECTICUT STATE Treasurer Christopher Burnham should refrain from making any investment decisions for the $15 billion State of Connecticut Retirement & Trust Funds while awaiting the appointment of a successor, said the executive director of the State Ethics Commission. The decision is not binding, but Mr. Burnham risks violating the state's ethics code if he ignores the advice of the Ethics Commission.
Mr. Burnham said last month he would resign as treasurer and sole fiduciary of the Hartford-based pension fund at the end of the summer to become CEO of Columbus Circle Investors, a money manager.
CALIFORNIA PUBLIC Employees Retirement System, Sacramento, and Union Labor Life Insurance jointly financed two California properties for a total of $21.6 million. The two mortgages are structured as forward permanent loans and are financed one-third by ULLICO's J FOR JOBS mortgage separate account and two-thirds by CalPERS, with $110 billion in assets. ULLICO originates the loans for the lending program.
CalPERS and ULLICO have jointly invested or committed a total of $125 million in commercial mortgages since 1995. CalPERS has earmarked $200 million for ULLICO to lend to California projects.
HOUSTON FIREMEN's Relief & Retirement Fund plans to conduct an asset allocation study within the next six months before deciding whether to add any asset classes or money managers Danny Bowers, CIO of the $1.4 billion fund, daid the study would be conducted internally and probably will result in reallocating some of the funds domestic equity assets to bring the fund back within its 30% to 40% target range. The fund has about 42% in domestic equities now.
CALIFORNIA STATE Teachers' Retirement System, Sacramento, will begin a search for a senior investment officer for alternative investments with top pay of $110,000 a year. Teh $75 billion fund has a target allocation of 5% of assets for alternative investments. The recruitment process will be handled by the fund's staff, and selection will be made by a panel. The position has been vacant since March when Solomon Owayda resigned to take a job with Schroder Ventures in Boston.
NEW YORK COMMON Retirement Fund's alternative investment staff issued an RFP for a captive fund-of-funds adviser, confirmed state Comptroller H. Carl McCall Responses are due to the $80 billion Albany-based fund Aug. 18, said Mr. McCall.
DISTRICT OF COLUMBIA Retirement Board Urdang & Associates to manage a $60 million property portfolio formerly run by LaSalle Advisors, according to Jeanna Cullins, executive director. Finalists in the search were Equinox Realty Advisors and American Realty Advisors. Courtland Partners, the $3.7 billion board's real estate consultant, conducted the search.
E.I. DU PONT de Nemours & Co. Wilmington, Del., added four investment options to its $13 billion 401(k) plan, expanding the number of choices to 21 form a variety of providers. Added are the Fidelity Fund, Fidelity Equity-income Fund, Fidelity Growth & Income