Indiana State Teachers' Retirement System, Indianapolis, approved plans to search for its first equities managers, said Robert Newland, investment officer.
RFPs for managers to run $100 million each in S&P 500 index and S&P 500 enhanced index portfolios are likely to be sent out by the end of January. But the timetable could be extended, he said. Callan will assist.
In addition, Callan will perform a custodial audit to make sure custodian National City Bank of Indiana can handle the fund's assets.
Callan also will assist the fund with identifying possible record keepers for its quasi-defined contribution plan within the defined benefit system.
Trustees also finalized the investment policy statement for the defined benefit plan, and will consider doing the same for the defined contribution portion at its January meeting, he said. The fund also will seek an outside firm to educate teachers about the DC program, he said.
Legg Mason will acquire Brandywine Asset Management for 2.6 million shares of Legg Mason common stock in a deal valued around $130 million, officials of Brandywine said today.
Little will change at Brandywine as a result of the sale, said Anthony Hitschler, Brandywine's CIO. All senior staffers will remain in place, but a COO will be hired; that position doesn't now exist at Brandywine.
Brandywine, a large-cap value equity manager, has more than $7 billion in assets under management, most of which is institutional tax-exempt assets.
Legg Mason has nearly $50 billion in assets under management through subsidiaries Bartlett & Co., Batterymarch Financial Management, Legg Mason Capital and Western Asset Management.
Washington Convention Center Authority is converting its $10 million defined benefit pension plan into a defined contribution plan next year, said Michael Green, director of human resources.
The authority expects to send out RFPs around the beginning of 1998 for a consultant to help shut down the defined benefit plan and convert it, Mr. Green said. The board of directors of the convention center will meet Friday to finalize details of the conversion, he said.
The Convention Center Authority, which has about 160 participants in its pension plan, will freeze its plan and possibly buy annuities for existing employees, or allow them to move their money to the new plan, Mr. Green said.
Orange County Employees Retirement System, Santa Ana, Calif., allocated an additional $225 million to Boston Partners, which runs a fixed-income portfolio tied to the Lehman Brothers Aggregate index. The total size of the portfolio was not available; the fund has $3.6 billion in assets. Funding came from terminating ABN Amro, which ran intermediate bonds, and Columbus Circle, a growth equity manager, as part of a realignment and consolidation of managers. Callan assisted.
