Chicago Park District Annuity & Benefit Fund, Chicago, is working to get state legislation passed to allow the fund to use a prudent person rule, said Joseph Fratto, executive director of the $570 million fund.
The Park District would probably raise its equity asset allocation 5% to 10% under a prudent person rule, he said.
State law now limits the fund to 40% of book value to be invested in equities, although a ``basket clause'' allows a few more percentage points of assets to go into stocks, he said.
The Illinois legislature has accommodated other public pension funds in the matter. Both the Chicago Municipal Employees' and Chicago Laborers' Annuity & Benefit Funds were allowed to adopt the prudent person rule last year. Mr. Fratto said it is too soon to estimate how likely it is that the state will change the law.
Cowen Asset Management, New York, introduced the Cowen Large Cap Value Fund, managed by Benedict Capaldi. His stock selection approach is three-pronged, based on stock price, risk profile and company fundamentals.
SEARCHES & HIRINGS
Orange County Employees' Retirement System is expected to send out RFPs at the end of this week for a master custodian and securities lender. The fund is seeking a custodian with global custody capability and state-of-the-art communication and analytical technology.
The Santa Ana-based fund could make a choice as early as July. RFP-completed questionnaires are expected to be due back in February.
A separate RFP for securities lending will go out because fund officials are considering that service separately.
Bankers Trust, the $3.8 billion fund's current custodian and securities lender, is expected to compete for both assignments.
Callan Associates will assist.
Manchester (Conn.) Retirement Allowance Fund is searching for a consultant because The Hannah Group's contract runs out July 1.
RFPs are due back to the $80 million fund by March 31. Hannah Group will be allowed to rebid.
Detroit Edison, Detroit, hired Mount Lucas Management to run a $35 million passive managed futures program for its $1.4 billion defined benefit plan.
The program, based on the Mount Lucas Management index, will be funded from cash reserves.
Allen Anning, director of trust fund management, said the company continues to look for other alternative investment opportunities such as timberland and mezzanine debt financing, but no searches are under way.
Detroit Edison officials will review deals as they are brought to them by consultant New England Pension Consultants, Mr. Anning added.
Texas County & District Retirement System, Austin, hired its first equity manager in a move to create an equity exposure of 30% of total assets.
Barclays will run 5% of the $5.5 billion fund in an S&P 500 index fund. The funding will come from new contributions, said Terry Horton, director. Previously, the plan was 100% invested in-house in long-term bonds.
Trustees are examining other types of equity portfolios to fill the new target allocation. Nothing more will be decided until at least July, Mr. Horton said.
Wilshire is assisting.
University of Cincinnati endowment fund hired The RREEF Funds to manage a $12 million portfolio of real estate investment trust securities, said Linda Graviss, assistant treasurer. Funding came from a reallocation of the $680 million endowment's assets, said Ms. Graviss.
Suiza Foods Corp., Dallas, hired MFS Investment Management as bundled provider for a new 401(k) plan. The plan will have $40 million to start, all from several smaller plans of companies recently acquired by Suiza.
MFS will provide administration, record keeping and eight diversified investment funds in addition to Suiza company stock.
The Bell Financial Group assisted.
Bramco Inc., Louisville, Ky., hired Diversified Investment Advisors to handle the investments and administration of its $27 million 401(k) plan.
Diversified replaces two firms: Invesco, which had managed investments for the plan, and William M. Mercer, which had handled administration, said Michael Brennan, Bramco's vice president, finance.
Des Plaines (Ill.) Policemen's Pension Fund hired Montgomery Asset Management and Mesirow Asset Management as its first equity managers.
The $38 million fund will place about $7 million with each to run in ``all-cap'' portfolios. The money will come from the plan's annuities and existing fixed-income managers, none of which will be terminated.
Prudential Securities assisted