PHOENIX, Ariz. - The $17.3 billion Arizona State Retirement System put its $14.8 billion in externally managed assets up for bid, in compliance with state procurement laws, and might bring $500 million in U.S. fixed-income investments in-house before year end, said Paul Matson, senior investment manager.
Mercer Consulting will handle the RFP process for the $17.3 billion fund, which will include all 10 external managers with 18 mandates. The process is expected to be completed by early next year.
The fund now runs $2.5 billion in U.S. equities internally.
Officials also will decide if fund staff will manage some domestic fixed income.
SACRAMENTO, Calif. - Trustees of the $80 billion California State Teachers' Retirement System approved the preparation of an RFP for a new real estate consultant and the identification of a list of independent real estate fiduciaries that could help with selection of real estate managers.
Previously, the fund relied primarily on a real estate consultant alone for that work, but the board and staff believe the tandem approach will strengthen the fund's real estate program and avoid potential conflicts of interest.
Institutional Property Consultants, the fund's previous real estate consultant, resigned earlier this year.
Massachusetts Bay Transit
BOSTON - The $1.5 billion Massachusetts Bay Transportation Authority Retirement Fund is beginning a search for managers to handle a $40 million allocation to venture capital and mezzanine financing.
Officials haven't determined the number of managers to be hired, said John J. Gallahue Jr., executive director. Hannah Consulting Group will assist.
OKLAHOMA CITY - The 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 which earlier responded to the system's request for information. He said two or three managers would be selected with the final decision expected in October or November.
Funding will come rebalancing a portion of the fund's equity assets.
New Orleans Employees'
NEW ORLEANS - The $309 million City of New Orleans Employees' Retirement System will conduct a search for a small-cap value equity manager to invest between $10 million and $20 million.
The search will be conducted by Dean Witter Investment Consulting; a hiring is expected before the end of the year, said Jerry Davis, board chairman.
TAUNTON, Mass. - The $70 million Taunton Contributory Retirement System is conducting a routine search for an investment consultant because its three-year contract with Segal Advisors expired June 30, said Paul J. Slivinski, executive secretary.
"The contract is automatically renewable, but the board is going to go forward with a search anyway," he said. The deadline for RFPs is Sept. 24; no timetable for making a decision has been set.
The system also is searching for its first venture capital investment adviser. RFPs will go out soon, he said. The system is adding venture capital as a new asset class, with about 3%of assets devoted to it. Money for the new asset class will come from employer contributions.
Meanwhile, trustees hired Buck Consultants as actuarial consultant.
Kansas City Public Utilities
KANSAS CITY, Kan. - The $250 million pension fund of the Board of Public Utilities has launched an asset allocation study.
DeMarche Associates is expected to give its recommendations to the fund's board Oct. 24.
The fund now has 80%of its assets with UMB Bank in a balanced portfolio; 10%in U.S. equity managed by Dalton, Greiner, Hartman, Maher; 6%in international equity with Lazard Freres; and 4%in commingled real estate funds, split between Prudential and MetLife.
MANCHESTER, Conn. - Trustees of the $80 million Manchester Retirement Allowance Fund will discuss Sept. 15 adding a fixed-income manager and other alternatives.
The Hannah Group will make recommendations.
LAKELAND, Fla. - The $270 million Lakeland Employees' Pension Fund is considering more diversification for its fixed-income portfolio, said Gary Clark, executive director.
The board is looking at its $108 million core domestic bond portfolio managed by Merrill Lynch Asset Management. Trustees will know if changes will be made in about a month.
COLUMBIA, S.C. - Anchor Continental is searching for a bundled 401(k) provider to replace Boatmen's Trust, which was purchased by NationsBank and no longer provides bundled services.
RFPs were issued by Johnson & Higgins. Anchor is hoping to finish the search this month, said Denise Pirkkala, benefits manager.
The 401(k) plan has $10 million in assets, according to Nelson's Directory of Plan Sponsors.
Teamsters, Local 947
JACKSONVILLE, Fla. - The $86 million pension fund of Teamsters, Local 947, is considering hiring a consultant to help it increase exposure in international stocks, said John Atkins, co-chairman of the board.
The fund's actuary, William M. Mercer, has been assisting on evaluating potential candidates, he said.