California State Teachers' Retirement System, Sacramento, will nearly double its allocation to active U.S. equity.
A unanimous decision by the $80 billion system's board will boost the total amount invested in active domestic equity portfolios to $6.4 billion from $3.4 billion, said Patrick Mitchell, CIO. CalSTRS has a total of $32 billion in domestic equities.
CalSTRS, Mr. Mitchell said, is planning to send out an RFP early next year for as many as 14 firms. The fund has about six active U.S. equity managers now, but those slots also will be up for grabs because their current contracts are near expiration. Mr. Mitchell said he will ask the board around January to decide what kinds of managers will be sought.
Lockheed Martin plans to merge the nearly $10 billion Northrop Grumman pension assets into its own $20 billion plan once the merger of the two defense giants gets final approval. Northrop Grumman also has nearly $5 billion in defined contribution assets; Lockheed's DC assets total $10 billion.
The combined assets will be overseen by Lockheed Martin Investment Management, a new investment management subsidiary. Wayne Shaner and George Weintz, both vice president-investments at Lockheed Martin, will work with newly hired LMIM President Anthony Van Schaick. The subsidiary is structured to accept outside pension fund business but, a spokesman said, there are no plans to take on external money management for at least five years.
Baltimore Fire & Police Retirement System, with assets of $1.1 billion, terminated WR Lazard as manager of a $60 million fixed-income index fund, said Abraham Schwartz, general counsel.
Continuous turmoil at the firm was the reason for the termination, said Mr. Schwartz. The money managed by WR Lazard will be placed with an existing fixed-income money manager which has not been chosen.
An Employee Benefit Research Institute report says there are now 53,000 defined benefit plans in the U.S., down from 84,000 last year. The number of U.S. defined contribution plans, meanwhile, has grown to 647,000, up from 619,000 last year.
The number of participants covered by the more traditional defined benefit pension plans has held steady around 40 million this year, EBRI estimates. Participation defined contribution plans has increased slightly to 46 million from 44 million the previous year.