Deluxe Corp., Shoreview, Minn., is searching for investment managers, a record keeper and a trustee for its $1.7 billion money purchase profit-sharing plan and its $81 million 401(k) plan, said Morris Goodwin Jr., treasurer. Deluxe hired Jeffrey Slocum & Associates to assist in establishing investment guidelines and policies, and to help with the searches. The company expects to complete the searches by August, then implement the restructuring in six to nine months. The company wants both plans to use the same managers and external administrators. They now use different money managers; First Trust is the trustee for both. For equities managers, it is considering domestic large-cap, midcap and small-cap growth and value and international. In fixed income, it is considering short-term, money market and stable value. For record keeper and trustee, it is considering a single organization to provide both services or separate providers for each. The company asked Slocum to consider unbundled and bundled approaches.
Cherokee Eastern Band, Cherokee, N.C., is searching for U.S. small-cap managers and large-cap to midcap international equity managers. The portfolios combined will total no more than $10 million, said investment committee member Tiani Osborn. Consultant Kalson & Associates is evaluating manager proposals. Managers will be interviewed in early August. The minors fund totals $19 million and the general endowment fund has $40 million in total assets.
Kansas City (Mo.) Police Retirement Fund is searching for its first small-cap equity manager over the next five weeks. Consultant DeMarche Associates will bring its recommendations to the board in early August. The size of the portfolio and investment style have yet to be decided. The police fund has $560.5 million in total assets and the civilian fund, which is managed in conjunction with the police fund, has $53 million in assets.
Trustees for the $10 billion San Francisco City & County Employees' Retirement System approved an RFI for a Russell 1000 value index fund manager. The process is expected to be completed in the next few weeks. The board hasn't decided how much money to allocate to the manager chosen, but one estimate is about $300 million. The fund also will be looking for a small-cap value manager. No estimate on the amount of money to be allocated to that manager was available. It had been expected an RFP for that manager search would go out in August and a selection would be made by the end of November. However, those dates are uncertain now as the board re-examines its calendar. Money for the new managers will come from rebalancing after a reallocation plan is completed. The fund intends to increase its pure passive allocation to around 15.8% of assets from 12.5%. The fund's total domestic equity is about 41% of assets. Asset Strategy Consulting is assisting.
Staff for the $140 billion California Public Employees' Retirement System, Sacramento, is recommending a search for general pension consultants. Wilshire Associates and Pension Consulting Alliance are the fund's current general pension consultants. But, staff members said, the consultants' contracts are up July 1, 1999, and they want to test the market. The staff also recommended a pool of acceptable consultants be established that can be called on for special projects and act as consultants-in-waiting should the fund terminate one of its existing consultants. Staff members were expected to ask the CalPERS investment committee Monday to issue the RFP in August; proposals would be due in November, with final selection in March. Wilshire and PCA are expected to compete if the RFP is approved.
The $1 billion Austin (Texas) Employees Retirement and Pension Fund hired Dabney Investment Consulting to help with the search for a commission recapture firm. It is now fine-tuning the RFPs, said Cathy Harrington, pension officer. RFPs should be out by the end of the month, and trustees for the fund have yet to determine whether more than one firm will be hired. A timetable has not been set.
The Illinois State Board of Investment is in the midst of a strategic asset allocation review expected to be finished in July, said Jane Patterson, executive director. Changes are likely, she said. The fund's strategic allocation is: 35% U.S. equities; 10% international equities; 10% global equities; 35% U.S. fixed income; 5% real estate; and 5% alternative equities. Hewitt is assisting.
The $500 million Middlesex County Retirement System, Cambridge, Mass. is conducting an asset allocation study and reviewing its investment policy, said Dick Zaccaro, the H.C. Wainwright consultant who is assisting. The study, which will be completed by July, could result in changes in the system's managers, he said.
Carpenters District Council South Florida, Hialeah, is discussing the addition of a domestic fixed-income manager. Trustees of the $155 million defined benefit plan will likely discuss a search at their fall meeting. Typically, the fund does not conduct open searches. Instead, trustees provide consultant Investment Performance Services with a list of managers they wish to consider. The size and funding of any new fixed-income portfolio has yet to be determined.