Indiana Public Employees' Retirement Fund, Indianapolis, will send out RFPs in 30 to 60 days for at least $1 billion worth of passive and enhanced passive equity assignments, said Garth Dickey, executive director.
The $7.5 billion fund will be looking for a large-cap equity index manager and an enhanced large-cap equity index manager, each for at least $500 million to manage. After next week, the fund will have put about $700 million into equities, after receiving voter approval to do so last November.
The searches will come on the heels of the board adoption of new policies and procedures today, which now include the use of futures for the replication of market returns, and the use of BBB rated bonds and Yankee bonds.
Metal Industries Benefit Funds Administrators, Johannesburg, is exploring investing 10% of the funds' 25 billion rand ($5.3 billion) in assets in overseas stocks. The pension and provident funds might allocate $100 million in global mandates in the first quarter of next year, said John Symons, portfolio manager. Domestic equities would be reduced to fund the allocation. The pension fund also is close to hiring a global custodian.
Florida State Board of Administration, Tallahassee, is preparing for a mortgage-backed and related securities search, said Tim Parker, senior portfolio manager. The number of managers and the amounts they will handle has yet to be determined. The funding will probably come from contributions.
Also, the fund hired Salomon Brothers Asset Management, PIMCO, OFFIT Bank and BEA Associates as high-yield bond managers for its $17 billion bond portfolio.
The new managers will evenly split $850 million which will come from cash and new contributions to the $70 billion fund.
Fidelity's Magellan Fund has already received an estimated net inflow of $62 million in September, as retail investors race to get into the fund before it closes at the end of the month. The pace of investments caused Alpha Equity Research to up its cash flow estimates for September to between $200 million and $300 million, compared with $1 million in August. Magellan had net outflows of $11 billion from April 1996 to July 1997; a net $4 billion left the fund from January to July.
SEARCHES & HIRINGS
Johns Manville Corp., Denver, hired three balanced managers in a restructuring of its $700 million master pension trust.
Capital Guardian, Putnam and J.P. Morgan will replace the fund's current managers. The new managers will be measured against a benchmark of 60% stocks and 40% bonds, including a 25% allocation to foreign securities.
Funding should be completed by the end of the third quarter, said Steven J. Wagner, director, pension investments. He would not identify the terminated firms or how the assets will be split up. Mercer assisted.
Los Angeles Fire & Police Pension System selected six finalists in its search for a fixed-income manager to run a $700 million corporate bond portfolio. The board of directors is expected to make a decision in 30 days. Finalists are Pacific Investment, Capital Guardian, Reams Asset, Western Asset, TCW Group and Miller Anderson & Sherrerd.
The portfolio had been managed by Boston Co., but the fund did not renew its contract when it expired in December because of poor client servicing, a spokesman said. Boston Co. CIO Alexander Webb declined to comment.
Wyatt Investing Consulting is aassisting.
Freightliner Corp., Portland, Ore., hired Copper Mountain Trust as master trustee of its defined benefit and defined contribution plans, replacing Wells Fargo. Kelley Platt, manager treasury services, would not discuss the reasons. The plans have $353 million in combined assets, according to Money Market Directory. The search was done in-house.
Colorado Fire & Police Pension Association, Englewood, hired Putnam Institutional as a European equity manager for its defined benefit plan, replacing Walter Scott & Partners in managing the $70 million portfolio. Walter Scott was terminated for performance reasons, said Ruth Sieler, executive director.
Officials at the firm could not be reached.
Pension Consulting Alliance assisted.
Bechtel Power Corp., San Francisco, added four mutual funds to its $3.5 billion defined contribution plan. Baron Asset Fund and the T. Rowe Price Mid-Cap Growth Fund were added to the plan's aggressive growth option. The Janus Overseas Fund and the American Funds' Euro-Pacific Growth Fund are new funds for the international growth option. Each option now contains three funds. Callan Associates assisted.
Joseph DelCasino, deputy comptroller for real estate for the New York Common Retirement Fund, Albany, resigned, said a spokesman for the system. Mr. DelCasino was unavailable for comment. However, industry sources said he was joining a real estate affiliate of Donaldson, Lufkin & Jenrette. That could not be confirmed