The $135 million New Bedford (Mass.) City Retirement System issued an RFP for a domestic large-cap to midcap equity growth manager to run $25 million to $30 million. The deadline for responses is Nov. 20. Current manager BankBoston is being replaced because of performance problems and the departure this summer of institutional equity manager Lawrence Kimball, said Robert J. Allain, executive director. BankBoston declined to comment on the termination. Watson Wyatt is assisting.
The $3.2 billion Alameda County Employees' Retirement Association, Oakland, Calif., will issue an RFP or RFI within the next two weeks for a global custodian. Linda Brewton, chief investment officer, said deadlines for responses and final selection have not yet been determined. Bank of New York is the current custodian and will be considered for the new contract. The search is to test the market for custodian availability and pricing. Callan Associates is assisting.
Trustees of the $88 billion California State Teachers' Retirement System, Sacramento, approved a restructured RFP for hiring up to three general pension consultants. The new RFP, planned for release in December, more sharply focuses on the ability of consultants to assist in asset allocation decisions and puts emphasis on asset allocation capabilities. The deadline is the end of January. Pension Consulting Alliance, the fund's current general pension consultant, is expected to rebid.
The $413 million Tucson (Ariz.) Supplemental Retirement System will search for two international equity managers to split a new 15% international allocation. Existing manager Murray Johnstone will be included in the search. Others will come from consultant Hewitt's database. No RFP will be issued. Trustees for the fund will look for managers invested in both developed and emerging markets, said Mike Parisi, treasury administrator.
Separately, the fund will search for a master custodian in February. Incumbent Northern Trust will be considered and the search will be limited to the top six or seven banks. Hewitt is assisting.
The $127 million Lowell (Mass.) Retirement System adopted a new asset allocation and will begin searching for managers to fill new slots around the end of the year, said Dick Zaccaro, the H.C. Wainwright consultant who assisted. Under the new plan, the system cut domestic equity exposure to 45.3% from 59.7%; hiked international stocks to 8% from 6.4%; and added high-yield bonds and emerging-market bonds as new asset classes. Funding will come from cash. The system is targeting an 11.5% rate of return, with lower risk than the previously targeted 10.8%. The new equity mix is: 10.3% domestic large-cap value; 9% large-cap growth; 7.5% midcap value; 6% midcap growth; 7% small-cap value; 5.5% small-cap growth; 6.5% international developed market (EAFE); and 1.5% emerging market stocks. Fixed-income investments are: 6% short-term domestic; 11.8% intermediate domestic; 5.5% long-term domestic; 4.2% high-yield bonds; 5.3% international developed market; and 1.5% international developing market bonds. The system allocated 6.2% to real estate and 6.2% in other alternative investments.
The $55 million Woburn (Mass.) Retirement System will convert a domestic large-cap value portfolio run by Babson into domestic small-cap value and midcap growth portfolios, and search for a new manager to run a domestic small-cap growth portfolio. RFPs will go out by the end of the year. The system also will issue RFPs for an international bond manager by the end of the year, said Dick Zaccaro, the H.C. Wainwright consultant who is assisting. The changes follow the adoption of a new asset allocation plan.
The $30 million City of Jackson (Mich.) General Employees' Retirement System is expected to begin a search next quarter for an additional manager, following the completion of an asset allocation study, said Maurice White, chairman of the fund. Portfolio style, size and funding source for the new manager have not yet been determined. The current asset mix is 54% equities, 38% fixed-income and 8% cash.
The $88 billion California State Teachers' Retirement System, Sacramento, expects to issue an RFP in April for four or five active equity emerging market managers to divide about $1 billion. The search is the result of a renewed decision to split emerging market assets equally between active and passive equity money managers. Currently, State Street Global Advisors is the fund's only emerging markets manager, with just less than $1 billion in passive emerging markets assets. Funding is not yet determined. Pension Consulting Alliance is assisting.