Chicago Laborers' Annuity & Benefit Fund trustees heard recommendations from consultant Becker, Burke suggesting 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 billion 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.
San Diego County Employees' Retirement Association, San Diego, reinstated Hart Bornhoft Group as one of its futures managers-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 managed 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.
University and Community College System of Nevada, Reno, terminated Pacific Financial Research and 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 Hoagland 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 investments. Cambridge assisted.
Teachers' Retirement System of Illinois board memers 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 help select an executive director to replace Robert Daniels, who retired last year.
The Vanguard Group filed with the SEC to introduce three new indexed equity mutual funds: the Mid Capitalization Stock Portfolio will track the S&P MidCap 400 index; the Small Capitalization Value Stock Portfolio will seek to replicate the S&P SmallCap 600/BARRA Value index; and the Small Capitalization Growth Stock Portfolio will follow the S&P SmallCap 600/BARRA Growth index.
