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, said 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.
Los Angeles City Employees' Retirement System extended for one year its contract with W.R. Lazard, which manages a $178 million intermediate term government bond index fund for the $6.2 billion system. The contract could be, terminated, however, 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 LACERS staff deems termination appropriate.
The system also gave contract renewals to two other firms: Lincoln Capital, which runs a $473 million Lehman Intermediate Government Corporate fixed-income index portfolio and a $582 million active bond core portfolio, 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.
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. The $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.
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 on California projects.
SEARCHES & HIRINGS
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 hired 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., has added four investment options to its $13 billion 401(k) plan, expanding the number of choices to 21 from a variety of providers. Funds added are the Fidelity Fund, Fidelity Equity-Income Fund, Fidelity Growth & Income Fund and Fidelity Low Price Stock Fund.
OHM Corp., Norcross, Ga., added the Ivy Mackenzie International Fund and the MFS Value Fund to its 401(k) plan. Trustees also selected the AIM Balanced Fund to replace the Fidelity Balanced Fund. The switch was due to poor performance of the Fidelity fund for the last couple of years, said Todd McCollough, employee benefits manager for the $40 million plan.
Mercer assisted. Fidelity declined to comment. The number of options in the plan will increase to seven.
Mississippi Deferred Compensation Plan, Jackson, added three investment options. Barclays Global Investors was hired to provide an S&P 500 index fund and money market fund, and the Boston Co.'s Premier Value Equity Fund also was added. The $350 million plan now has 12 investment choices. The plan suspended its search for a lifestyle fund for at least a year until major providers have at least a five-year track record, according to a
The Minnesota Chamber of Commerce hired EDC Co. to provide members and chamber employees with discounted third-party administrative services for 401(k) and flexible benefit plans, said Sharon Konieczny, a spokeswoman. EDC will provide all record keeping, custody, compliance and reporting services, as well as employee education and communication.
Fred Youngstrand, president of EDC, said chamber members will get 15% to 70% off regular administrative fees