SEARCHES & HIRINGS
Los Angeles Fire and Police Retirement System started a search for an EAFE equity manager for $300 million to $400 million and might seek an emerging markets manager.
The EAFE manager will be used to manage growth in the $9.3 billion fund's international assets and may take over an existing international equity portfolio. The manager that might be affected wasn't disclosed. Watson Wyatt is assisting.
The fund's current international equity managers are Nomura Capital, Oechsle International and Clay Finlay.
No decision has been made on whether to search now for an emerging markets firm or wait for the completion of an asset allocation study, expected in the middle of 1998. The fund has a current allocation of 1% of assets for the emerging markets, but that figure could change.
State of Connecticut Trust Funds, Hartford, committed a total of $320 million to three alternative investment limited partnerships and $2.2 billion to core fixed-income managers.
State Treasurer Paul Silvester, sole trustee of the $16.8 billion pension fund, placed First Pacific Advisors on the watch list and removed RCM Capital Management from it.
In alternatives, the fund committed $145 million to Triumph Capital Partners III, $100 million to the IAI World Fund and $75 million to SCP Private Equity.
For bonds, the fund committed $300 million apiece to J.P. Morgan and BlackRock, which already managed $300 million each for Connecticut; $600 million each to new managers Western Asset and Wellington; and $200 million apiece to Phoenix Duff & Phelps and Mitchell Hutchins, also new managers.
First Pacific Advisors was placed on a watch list because the U.S. small-cap portfolio it manages for the fund was 30% in cash, despite insistence from Connecticut that the portfolio be fully invested. RCM was removed from probation because personnel issues that landed it there had been resolved, said Mr. Silvester.