Illinois Tool Works, Glenview, Ill., is conducting searches for domestic small-cap equity and fixed-income managers for its $650 million defined benefit plan. Larry Ruff, manager of employee benefits accounting, would not reveal the size of the portfolios or names of the existing managers. It is possible the assets will be shifted among existing bond managers, he said. Consultant Hewitt Associates is expected to report back to trustees in 10 weeks with the search results.
The San Francisco City & County Employees' Retirement System planned to issue RFPs June 1 for a plan administrator for the system's $591 million 457 deferred compensation plan. Selection of finalists is expected at the end of July, and a hiring is expected in early September. Hartford, the existing plan administrator, is expected to compete. Watson Wyatt is assisting.
The $157 million New Orleans Sewerage & Water Board Employees Pension Fund has issued RFPs for an active domestic large-cap growth manager and a passive domestic large-cap manager to run a total of $22 million, said Marcia A. St. Martin, deputy director. The fund uses Chancellor LGT Asset Management as a large-cap manager and "we may be replacing Chancellor," she said. David Thomas of the New Orleans office of Prudential and Toni Hackett of Washington Hackett are assisting. The board hopes to have the new managers on board by Oct. 1.
The $8 billion Police and Firemen's Disability & Pension Fund of Ohio, Columbus, plans to search for its first emerging markets manager after it finishes a review of its $800 million international equity portfolio. The review should be finished by October or November, said Allen Proctor, executive director of the fund. More money is expected to be shifted to the international stock portfolio to reach the fund's 15% target allocation. The portfolio is underweighted. As part of that increase, the fund expects to allocate about $60 million to an emerging markets manager; no timetable has been set.
The $610 million Chicago Park Employees' Annuity & Benefit Fund is likely to conduct a complete review of its asset allocation, said Joseph Fratto, executive director. The state Legislature passed a bill allowing the fund to adopt a prudent-person rule, and Gov. Jim Edgar is expected to sign it within 30 to 45 days, Mr. Fratto said. Should he sign it, Becker Burke, one of the fund's consultants, will embark on a review of all aspects of the investments of the fund, "everything from soup to nuts," he said. Currently the fund's target allocations are: 45% U.S. equities; 5% non-U.S. equities; 5% real estate; 43% U.S. bonds; and 2% cash.
Rouge Steel Co., Dearborn, Mich., is undertaking an asset/liability and asset allocation study for its $130 million pension fund. The study's preliminary recommendations call for the fund to increase its equity allocations, both domestic and international, among other possible changes still under scrutiny. Towers Perrin is assisting in the study. The fund hopes to review the study in the next couple of months and consider its recommendations and decide whether and how to implement changes. Its current allocation is 54% domestic equities, 10% international equities, 32% bonds and 4% cash.
The $55 million Natick (Mass.) Contributory Retirement System will conduct an asset allocation study, said Kathleen Bacon, director. The system's new investment consultant is HC Wainwright. Ms. Bacon could not give the system's current allocation.