SEARCHES & HIRINGS
University of North Carolina at Chapel Hill is searching for managers in all asset classes in a restructuring of its $700 million long-term investment pool, said Mark Yusko, CIO.
An asset mix will be discussed at the end of this month and probably implemented before May. The recommended mix: 25% U.S. stocks, 15% non-U.S. equity, 10% absolute return investments, 10% opportunistic hedge funds, 15% private equity, 5% real estate, 5% energy and 15% bonds. The strategy will increase the amounts in real estate, energy, private equity, international equity, absolute return and opportunistic asset classes and reduce U.S. bond and stock allocations.
The fund also is searching for a small-cap value manager to replace Snyder Capital, which was terminated because of recent changes in its organization. Mr. Yusko expects a firm to be selected shortly to manage the $25 million portfolio. Cambridge is assisting.
Brookline (Mass.) Retirement Board, with $125 million in assets, today picked Wilshire Associates as its consultant to replace Watson Wyatt, said William Wolf, retirement director. Watson Wyatt's contract ran out in December, but was extended until the end of this month, Mr. Wolf said.
Wilshire's first tasks will be to draft a new investment policy then conduct an asset allocation study. The fund now has 55% of its assets in bonds and the rest in equities. Mr. Wolf said the fund might diversify into other asset classes. ``We don't have small-cap (equities), real estate or venture capital,'' he said.
California Public Employees' Retirement System, Sacramento, approved a $100 million investment in Security Capital Global Realty. The new fund intends to invest in international real estate operating companies in Europe, Asia and Latin America.
CalPERS, with assets of $129 billion, has a $5.8 billion real estate portfolio.
Fort Lauderdale (Fla.) General Employees Retirement System hired Bank of New York as custodian. The bank replaces Chase Manhattan, which was allowed to rebid for the contract for the $230 million fund. The search was done internally.
Richard Equipment, Cincinnati, hired Fifth Third Bank as a bundled provider for its 401(k) plan. The firm replaces Ohio National Insurance, which offered strictly annuities to participants in the $1 million plan. Fifth Third offers its Fountain Square funds