The California State Teachers' Retirement System is expected at the end of the month to issue an RFP for up to 16 active U.S. equity money managers. The Sacramento-based fund's current six domestic equity money managers, which have a total of about $2.5 billion under management, are expected to apply for re-hiring. The firms to be selected will be allocated about $4 billion. The deadline for the equity RFP is expected to be in April. No date is set for final selection. CalSTRS also will start an internal $1 billion U.S. equity portfolio in April. CalSTRS also selected a new real estate consultant, Pension Consulting Alliance/E&Y Kenneth Leventhal, subject to fee negotiations. One of the new consultant's first jobs will be to determine if the fund should have an allocation to real estate investment trusts. CalSTRS has a 5% target for equity real estate.
The Attleboro (Mass.) Municipal Contributory Retirement System, with about $37 million in assets, is searching for a real estate manager to invest $2 million in publicly traded real estate investment trusts, its first investment in real estate, said Leslie Ring, retirement analyst. Money for the new investment will come from existing fixed-income or equity managers, Ms. Ring said. The fund has 55% of its assets in equities and the balance in bonds. The deadline for RFPs is Feb. 20. Segal Advisors is assisting.
The $7.2 billion Police and Firemen's Disability & Pension Fund of Ohio's investment committee may decide Jan. 21 to conduct a manager search, said Alan Proctor, executive director. The committee is expected to review its existing active large-cap equity managers at the meeting. Mr. Proctor said the fund's five active large-cap managers, which invest 30% of the fund's assets, have been underperforming the fund's small-cap equity and bond managers. The managers are: Atalanta/Sosnoff; Lakefront Capital; Oppenheimer; Value Line; and Bond Procope. The review is part of a new monitoring and rating system approved at the fund's December board meeting. The committee will make recommendations to the full board Jan. 28.
The $200 million Timber Operators Council approved its first allocation to international equity and international bonds, said Sharon Griffin, retirement manager. The fund will allocate $20 million to each asset class. An international equity manager search is being conducted through consultant R.V. Kuhns. Finalists will be interviewed in late February. Candidates for the international bond manager search are expected to be interviewed in April. Ms. Griffin expects two equity managers and three bond managers to be hired.
The New York City Employees Retirement System and New York Police Pension Fund trustees set new asset allocations for the two funds, said Deputy Comptroller Jon Lukomnik. The $34 billion NYCERS' fund will allocate 55% to U.S. equities, 13% to EAFE equities, 26% to structured domestic bonds, 4% to enhanced yield and 2% to alternative investments. The allocation was: 53% U.S. equities, 10% EAFE stocks, 32% domestic bonds, 3% enhanced yield and 2% to alternatives. The $14 billion police fund's new mix is 45% to U.S. equities, 19% to EAFE stocks, 4% to emerging market equities, 25% to U.S. bonds, 5% enhanced yield and 2% alternatives. The allocation had been: 53.5% U.S. equity, 12% EAFE, 3% emerging markets, 24% structured U.S. bonds, 5% enhanced yield, 1.5% alternatives and 1% real estate. Both funds have no investments in alternatives, but NYCERS is evaluating four recommendations from Pacific Corporate Group, its alternative investment consultant, said Mr. Lukomnik. The police fund's new allocation will contain REITs, but the trustees haven't decided if it will be part of domestic equities or a separate allocation, said Mr. Lukomnik.
Marsh & McLennan Co., New York, is reviewing the managers for its defined benefit plan, following its merger with Johnson Higgins, New York. The newly formed $1.5 billion plan is now using the managers from the companies' former plans, said By Hires, director of employee benefits. The internal review of the plan is expected to be completed in the next couple months, Mr. Hires added.
The board of the $175 million Fremont Area Foundation, Fremont, Mich., plans to meet in April to discuss the results of its asset allocation study. The review may result in the addition of venture capital investments, an increase in U.S. and international stocks and decrease in U.S. bonds, said Elizabeth Cherin, executive director. The current mix is 50% large-cap equities, 10% small-cap stocks, 10% international stocks and 30% U.S. bonds. Fund Evaluation Group is assisting.
The $275 million Oregon State University Foundation, Corvallis, is planning to add a small-cap to midcap equity manager. The size of the portfolio and date for a search will be decided sometime in 1998. R. V. Kuhns & Associates will assist.
Standex International Corp., Salem, N.H., is conducting an asset allocation study of its $150 million defined benefit plan. The review should be finished in the next couple months, said Thomas DeWitt, executive vice president of administration. The plan's current target asset mix is 65% equities and 35% bonds. New England Pension Consultants is assisting.