Trustees of the $140 billion California Public Employees' Retirement System June 16 approved issuing RFPs for pension consulting, domestic securities lending and alternative timber investments. Consultant RFPs are expected to go out in August; proposals will be due in November and a final choice will be made next March. The fund's general consultants now are Wilshire Associates and Pension Consulting Alliance.
The securities lending RFP isn't expected to go out until July 1999. Metropolitan West Securities, CalPERS' current domestic equities and corporate bond securities lender, is expected to bid.
No timetable for the alternative timber investments RFP was given. Trustees adopted an asset allocation range for timber investments of 10% to 20% of the fund's total investment in real estate; the fund now has $1.2 billion in timberland.
The Amesbury (Mass.) Retirement System sent out RFPs Friday for its first real estate manager -- a private REIT -- to manage between $1.5 million and $2 million, said Kevin Leonard, the Segal Advisors consultant who is assisting the $20 million fund. The deadline for RFPs is July 22.
The $151 million Brockton (Mass.) Contributory Retirement System will issue RFPs in the next few weeks for domestic large-cap growth and small-cap and midcap growth and value managers, said Harold P. Hanna Jr., executive director.
The system is conducting the searches to ensure it has managers for the specific style mandates. At the end of 1997, the system had $29.6 million with Freedom Capital, a domestic growth stock manager, and $24.3 million with Alliance Capital. Alliance has experienced "style creep" and, although it was hired as a small-cap manager, has become a large-cap manager, Mr. Hanna said. H.C. Wainwright is assisting.
American Airlines, Fort Worth, Texas, is looking at managers to help run its $12 billion defined benefit plan's growing international equity portfolio.
Officials boosted the international equity allocation to 20% from 10% of total assets, said Bill Quinn, president of AMR, the company's investment management arm. AMR is talking to some specific value equity EAFE managers, which Mr. Quinn would not name. The decision-making process may take the rest of the year.
The $24 million Greenfield (Mass.) Town Retirement System is considering adding a real estate allocation, said Marilyn Matysiewicz, fund administrator. Advest Consulting, the fund's consultant, will meet with the board June 29 to discuss adding the asset class, she said. Further information was unavailable.
The L1.5 billion ($2.48 billion) City of Edinburgh (Scotland) Council Superannuation Fund will review its U.S. equity mandates this summer, said Keith Shepherd, head of investment and treasury. Four-year contracts with Putnam Investments and Oppenheimer Capital are slated to expire by year end. The managers run about L75 million ($124 million) each, Putnam for a growth mandate and Oppenheimer for a value portfolio. Mr. Shepherd said he hopes to enter into five-year contracts.
The $55 million Natick (Mass.) Contributory Retirement System is conducting an asset allocation study, said Dick Zaccaro, the H.C. Wainwright consultant who has been hired recently. Mr. Zaccaro said he hopes to present the asset allocation study to the system's trustees at the end of July.
The $1.7 billion Montgomery County Employees' Retirement System, Rockville, Md., hopes to submit legislation to county lawmakers in July asking for the cap on international investing to be removed, said Julie Dellinger, executive director. The system now cannot invest more than 10% of its assets in non-U.S. securities.
Trustees of the $3.5 billion Arkansas Public Employees Retirement System will discuss in August potential changes to the system's 15% allocation to international investments.
Bill Van Cleve, executive director, said the fund's consultant, Callan, wants to talk to the board about the asset class.
It is expected the board will look at the current allocations to specific managers. Mr. Van Cleve declined to speculate further.
The Council of Michigan Foundations, Grand Haven, hired Fund Evaluation Group -- its first consultant -- to provide an asset allocation for each of the 35 community foundations managed by the council and review investment policies and investment managers. The foundations have $95 million in total assets. Scott Harsh, managing partner of Fund Evaluation Group, said the firm will recommend additional or replacement managers following the review. No timetable has been set.