Texas Tech University, Lubbock, is searching for a REIT manager to provide more diversification for its $179 million endowment, said Edward McGee, vice chancellor for investments. Proposals are due Dec. 18. David Stein, the endowment's consultant, said $5 million will be allocated to the new manager. A final decision is expected by February. Fund Evaluation Group is assisting.
The $22.5 billion Pennsylvania State Employes' Retirement System, Harrisburg, has issued RFPs for a consultant to oversee its $1.9 billion real estate portfolio. Current consultant The Townsend Group is invited to apply, said spokesman Geoffrey Yuda. Proposals are due Jan. 11.
The Nebraska Investment Council, Omaha, is searching for a core U.S. equity manager to run more than $100 million for its $1 billion defined contribution plan, said Rex W. Holsapple, state investment officer. The new manager will replace KPM Investment Management, which was terminated for poor performance. Wilshire Associates is assisting with the search.
Randall Greer, president, chairman and chief executive of KPM, acknowledged performance has lagged for about a year. Mr. Greer said KPM had put added emphasis on turnaround situations, because finding stocks that fit its value criteria were getting difficult to find. KPM since has reduced its emphasis on turnarounds, he said.
University of North Carolina at Chapel Hill trustees agreed to add $20 million to $30 million to its emerging markets allocation and look for two managers to run the money, said Mark Yusko, chief investment officer at the $750 million endowment fund. Funding will come from fixed income, which will be reduced to 15%. The endowment also plans to actively look for new opportunities in private equity and international real estate over the next two months.
The board also approved the reallocation of $40 million from an unidentified midcap domestic equity manager. The portfolio was divided among one new and three existing managers: $20 million to Maverick, an opportunistic equity fund and new investment; $10 million to Raptor, a long-short domestic equity fund that already manages $5 million for the endowment; $5 million to Feirstein Partners, a long-short domestic equity fund already running $10 million; and $5 million (plus $10 million from fixed income), to EII, a REIT manager already running $15 million.
The $21 billion Tennessee Consolidated Retirement System, Nashville, will issue RFPs sometime next month for two nondiscretionary real estate advisers to meet a 4% real estate target, said Thomas Milne, chief investment officer. A bill passed last year by the state Legislature now allows pension systems to invest as much as 5% in real estate. No decision about funding for the new managers has been made. The Townsend Group is assisting.
The $14 million Decatur (Ga.) Employees' Retirement Fund is expected to issue an RFP for a new actuary shortly after its Jan. 15 board meeting, said Peggy Merriss, city manager for the fund. The search will be conducted in-house.
The $10 million Mount Dora (Fla.) Firemen's & Police Retirement System plans to search for its first consultant sometime next quarter, said Steve Heitzner, financial analyst. The consultant would conduct manager performance reviews.
The $8.6 billion Kansas Public Employees' Retirement System, Topeka, is considering a search for an additional small-cap U.S. equity manager and will make a final decision by January, said Robert Woodard, chief investment officer. The state fund has two small-cap equity managers running a combined $380 million.
The $141 billion California Public Employees' Retirement System, Sacramento, will search for international equity and fixed-income managers in 1999, said Brad Pacheco, spokesman. The investment office will present a strategic review to the board in February, and RFPs are slated for May. The fund hopes to hire managers by March 2000. Mr. Pacheco added it was too early in the process to determine how many managers it would hire.
The $7.1 billion New York State Teachers' Retirement System, Albany, will issue an RFP sometime next year for a global custodian, said Candice Ronesi, spokeswoman. Bankers Trust has been the fund's custodian since 1995.
"This is not a consequence of the merger" announced last month between Bankers Trust and Germany's Deutsche Bank, Ms. Ronesi said. "But the fund was planning to search for a custodian at the end of Bankers Trust's contract." The new global custodian will take over in January 2000, she said. She added Bankers Trust will be invited to apply if it meets the fund's guidelines. A U.S. bank must act as New York Teachers' custodian, according to state law.
