State of Wisconsin Investment Board, Madison, is making its first
move into external active U.S. equity management.
The $54 billion board is searching for quantitative large-cap equity managers and S&P 500 enhanced index fund managers. The board expects to assign portfolios of $300 million to $500 million to each.
The RFP deadline is Feb. 16. SWIB is looking for quant-based managers using optimized portfolios or other disciplined techniques. Enhanced index
managers that use derivatives to achieve their returns won't be included. A performance-fee arrangement may be used.
Michael McCowin, CIO for SWIB, said the hiring of external managers does not signal a broad move away from the fund's largely internal management focus.
Asset Strategy Consulting is assisting.
San Diego County Employees' Retirement Association, San Diego, reinstated Hart Bornhoft Group as one of its futures manager-of-managers. The firm will manage the same amount it did before, about $56 million of the San Diego's roughly $150 million managed futures allocation.
Hart Bornhoft lost about $6 million for the $3.3 billion pension fund last year when a futures fund manage d by Victor Niederhoffer collapsed. The loss triggered an automatic suspension of Hart Bornhoft's allocation.
Brian White, retirement administrator for the county, said Hart Bornhoft has expanded and improved its risk control oversight.
Separately, the county board will decide next month how to hire a CIO to replace Richard N. Rose, who resigned last year.
Chicago Laborers' Annuity & Benefit Fund trustees heard recommendations from consultant Becker, Burke s uggesting the fund add small-cap equity to its asset mix and increase its allocation to international equity.
On April 16, the board will make decisions on asset allocation and whether manager searches will be done. The $1.4 billi on fund's asset mix now is 44% large-cap stocks, 2% non-U.S. equity, 46% U.S. bonds, 5% cash, 2% real estate and 1% venture capital.
University and Community College System of Nevada, Reno, terminated Pacific Financial Research an d Anderson Hoagland as equity managers for the system's $363 million combined endowment and operating funds.
The $23 million in large-cap growth equity run by PFR and the $10 million in large-cap value equity run by Anderson Hoagl and will be split between existing index managers Grantham, Mayo, van Otterloo and Vanguard.
The terminations are part of an ongoing manager consolidation and not performance related, said Tim Ortez, director of banking and invest ments. Cambridge assisted.
Teachers' Retirement System of Illinois board members met with eight large-cap equity managers last week and are meeting with fixed-income managers this week, as a possible prelude to selecting managers at its February meeting. John Day, acting executive director of the $18 billion system, declined to name the firms interviewed. The fund also is expected to select an executive search firm at its February meeting. The firm will hel p select an executive director to replace Robert Daniels, who retired last year.
The Belgian Commission on Corporate Governance issued a draft code of best practice based on the United Kingdom's Cadbury Code. The recommendations ar e expected to be made final in June.
Among other things, the report includes a strict definition of independence for outside directors and says boards must have ``a sufficient number'' of independent directors. It also calls for sp litting the role of chairman and chief executive and limiting boards to 12 members. Companies also should form audit committees composed of non-executive directors, most of whom should be independent, the report said.