Orange County Retirement System, Santa Ana, Calif., is expected to choose a new master custodian and a small-cap value manager at a special board meeting next week.
There are three finalists for each position, but system officials declined to name them. The current master custodian is Bankers Trust. The $75 million for the small-cap value portfolio will come from one of its large-cap active equity managers. The consultant for both searches is Callan Associates.
Next month, the $4.1 billion system is expected to decide whether to adopt a new domestic equity structure that will include a small-cap growth portfolio and assign different weights in large-and small-cap stocks and growth and value styles, said Farouki Majeed, the system's CIO.
``The change is to have a structure that would have bond market characteristics and not have risk biases,'' Mr. Majeed said.
Central States Southeast & Southwest Areas Pension Fund, Rosemont, Ill., today announced it will search for a second named fiduciary for its $19 billion Teamsters-related pension fund.
The second named fiduciary would oversee 15% of the fund and have the authority to allocate assets and hire and fire managers. It would join Morgan Stanley Dean Witter & Co., now the sole named fiduciary, whose oversight will be reduced to 85% of the fund.
The fund identified 20 candidates to which it will send invitations to bid.
They are: AIG Global Investment; BankAmerica; Bankers Trust; Barclays Global Investors; Capital Research & Management; Chase Manhattan; Citibank; Fidelity; Goldman Sachs; Merrill Lynch; Metropolitan Life; J.P. Morgan Securities; NationsBank; New York Life; Prudential; State Street; TIAA-CREF; Travelers Insurance; Vanguard; and Wellington Management.
Judge James B. Moran cleared the way for the search with a ruling today in favor of the fund trustees' motion to seek a second named fiduciary.