The $8.9 billion Public School Teachers' Pension and Retirement Fund of Chicago set a 3% allocation to venture capital and issued an RFP for venture capital managers. The venture capital allocation will be funded by reducing the system's allocation to small-cap equities or emerging markets. Mercer Investment Consulting will assist. The system also has established a 4% allocation to domestic midcap equities and issued an RFP for active domestic midcap managers. The allocation will be split evenly between passive and active management. Mercer will assist.
Deseret Mutual Benefit Administration is searching for a large-cap growth manager for its $1.8 billion pension fund, said Kent A. Misener, managing director-investments. It has one manager in mind as a candidate, which Mr. Misener didn't want to name, but the fund is looking at others, too. It hopes to make a decision in a few months. The amount of the assignment wasn't available.
The $110 million Holyoke (Mass.) Retirement System is searching for managers for two new asset classes in an attempt to further diversify its portfolio. The system is searching for a high-yield bond manager and a core midcap equities manager, to manage $8 million apiece. The deadline for RFPs is May 29, and the system hopes to have the new managers on board by the end of summer, said Rafiq Ghazarian, the Segal Advisors consultant who is assisting. The system has not yet determined where the money for the two new managers will come from, he said.
The $4 billion Indiana State Teachers Retirement System, Indianapolis, will send out RFPs for international equity managers in the next 30 to 45 days, said Robert D. Newland, the fund's investment officer. The fund will seek firms for a $150 million EAFE style mandate with no emerging markets exposure.
The $8 billion Indiana Public Employees' Retirement Fund, will search for active midcap U.S. equity managers, after hiring index and enhanced index domestic equity managers in March, said H. Garth Dickey, director of the Indianapolis-based fund. The fund is shifting to a 60% allocation to equities. The hirings will be the first step in Indiana's search for $2 billion worth of active U.S. equity managers. Managers in midcap growth and value investment styles will be hired, he said, but the exact timetable has not been determined. Searches are coordinated through the state's department of administration. Additional information will be posted on the Internet at: www.state.in.us/doa. Burnley Associates and Mercer are assisting.
Officials for the $8.5 billion Kansas Public Employees' Retirement System officials are gearing up for possible additions to the fund's real estate portfolio, with the state Legislature considering a loosening of investment restrictions. A bill that would give KPERS more freedom to invest in real estate property and commingled funds has been passed by the state Senate and was to be considered by the House after sessions resumed April 29. Trustees conducted a special meeting in March, where they reaffirmed the fund's 10% target allocation to real estate and reacquainted themselves with the asset class, said Robert Woodard, chief investment officer.
Separately, an asset/liability study for the overall fund officially began last month, which also is likely to lead to changes. That should be wrapped up in July, he said. KPERS current targets are: 28% U.S. equities, 15% non-U.S. equities, 26% U.S. bonds, 11% non-U.S. bonds, 10% real estate and 5% cash.
The $3.8 billion Milwaukee Employes' Retirement System probably will perform an asset/liability study and asset allocation review in the fall, said Pat Cronin, investment manager. But he said he doesn't anticipate the fund hiring managers this year. The fund's current allocation is 47% U.S. equities, 13% non-U.S. equities, 35% fixed income and 5% real estate. Asset Strategy consulting and Buck will assist with the asset/liability study and asset allocation review, he said.
The Wisconsin Deferred Compensation Program, Madison, is considering issuing RFIs for a mutual-fund brokerage option for its $750 million fund, said Mary E. Willett, director-supplement retirement plans. The option would allow participants to choose something in the order of 150 or more mutual funds, but would not include individual stocks or bonds. The funds would not be monitored or evaluated by the board. The option would complement the 13 investment choices the program now offers and monitors. The board could decide whether to issue the proposed RFI later this month and could seek to have the option in place by the end of the year. The program is not using a consultant.
Brockton (Mass.) Contributory Retirement System with about $140 million in assets, is looking at increasing its exposure to large-cap growth equities, said Harold P. Hanna Jr., executive director. The possible changes follow an asset allocation study by H.C. Wainwright, the systen's new consultant. Details of the asset allocation study will be presented at the system's next meeting May 27.