SEARCHES & HIRINGS
Oklahoma Teachers' Retirement System, Oklahoma City, plans to issue RFPs for small-cap equity managers to invest about $200 million. Tom Beavers, executive director of the $3.6 billion fund, said about 20 firms will be asked to respond from more than 90 that earlier responded to the system's RFI. Two or three managers will be selected; a final decision is expected in October or November.
Massachusetts Bay Transportation Authority Retirement Fund, Boston, will begin a search next week for managers to handle a $40 million allocation to venture capital and mezzanine financing. The $1.5 billion fund has not determined the number of firms to be hired, said John J. Gallahue Jr. the fund's executive director. Hannah Consulting Group will assist. A decision should come in the next six weeks.
Taunton (Mass.) Contributory Retirement System is conducting a search for an investment consultant because its three-year contract with Segal expired June 30, said Paul J. Slivinski, executive secretary of the $70 million fund. The deadline for RFPs is Sept. 24; no timetable has been set for a decision.
In addition, the system is searching for its first venture capital investment adviser. RFPs will begin going out soon. The system will allocate about 3% of assets.
Trustees also hired Buck Consultants as an actuarial consultant.
Sonoco Products Co., Hartsville, S.C., hired SEI Investments' Asset Management Group to run all of the fund's active equities in a manager-of-managers program for the $500 million pension fund.
Sonoco will assign SEI more than $200 million, which could increase depending on an asset-liability study, expected to be finished in October. SEI will have complete discretion to hire and terminate managers and play the lead role in recommending asset allocation. Vicki Arthur, assistant treasurer, said Sonoco:
Dropped its active equity managers - First Union National Bank of North Carolina; Grantham Mayo Van Otterloo; and Frank Russell;
Switched passive equity and passive bond managers, moving to State Street Global Advisors and dropping Bankers Trust; and
Dropped Wachovia Corp., its master trustee, and Wachovia Asset Management, which handled cash and short-term investments. SEI will be custodian.
The fund will retain its three real estate managers and its enhanced index fund investment contracts, issued by two insurance companies. The fund likely will enter high-yield bonds and expand its non-U.S. equity allocation.
MCN Energy Group Inc., Detroit, hired Putnam Institutional Management as a core growth equity manager for its $800 million defined benefit plan. Putnam will manage $48 million, replacing an unidentified manager, said Larry Schenk, manager trust investments. RogersCasey assisted.
Los Angeles City Employees' Retirement System has selected, subject to final negotiations, The RREEF Funds for a $20 million investment in undervalued properties. The $6.3 billion pension fund's consultant, Townsend Group, assisted. LACERS also renewed, subject to negotiations, Townsend's real estate consulting contract