Los Angeles City Employees' Retirement System board approved issuing an RFP for a manager to run a $100 million core value real estate separate account. Responses are due at the end of July. The system is also searching for a general portfolio consultant. According to the RFP approved last week by the board, consultant services are for various international and domestic equity and fixed-income, separate account and total fund issues. The services will also include domestic and international performance measurement and attribution analysis, formulation and modification of plan investment policy and strategic asset allocation advice. The consultant may additionally be asked to consult on the selection of domestic and international equity, fixed-income and currency overlay managers and to do asset-liability analysis. Although LACERS historically has used a single general pension fund consultant compensated on a retainer basis, the system may hire multiple consultants if it can be done without significantly increasing the cost to the fund, the RFP states. Responses to the solicitation are due Aug. 13. The RFP will be on the system's Web site.
Town of Davie (Fla.) Retirement System is searching for a new record keeper for its $8 million 401(b) plan to replace Delaware Charter Guarantee & Trust because of poor performance, said Christopher Wallace, budget and finance director. No RFPs were issued; Towers Perrin, the fund's consultant, is handling all proposals. Emily Smith, spokeswoman for Delaware Charter, was unavailable for comment. A decision is expected next month.
Alaska Permanent Fund Corp., Juneau, is searching for a growth manager, according to Jim Kelly, director of communications for the fund. He said the $26.3 billion fund expects to go through the preliminary process during the summer and hopes to have finalists in time for its next board meeting, in September. Callan Associates is assisting.
Orange County Employees Retirement System board, Santa Ana, Calif., has authorized staff to conduct a search for a fixed-income index manager to run a $150 million portfolio for the $4.1 billion fund. Currently, the system's fixed-income portfolio is all actively managed and "there was some room for some passive management," said Farouki Majeed, investment officer. The board also changed benchmarks for some of the fund's asset classes. The benchmark for U.S. equities was changed to the Russell 3000 from the S&P 500; for international equity, to the MSCI All Country ex-U.S. from a blended benchmark of the EAFE and the EMF; and for domestic fixed income, to the Lehman U.S. Universal from the Lehman Aggregate. Also changed were benchmarks of Delaware Investment Advisers, to the Russell 1000 Value, and STI Capital, to the Russell 1000 Growth; both previously had S&P 500. In other action, the board placed Pilgrim Baxter -- which manages $90 million in small-cap value equities -- on watch because of the resignation of portfolio manager, Gary Haubold.
Alameda County Employees' Retirement Association, Oakland, Calif., authorized consultant Watson Wyatt to begin working on search criteria for an additional emerging markets manager to help reach the fund's 3% emerging markets target, said Betty Tse, investment officer for the $3.4 billion fund. No decisions have been made on when the search will begin, portfolio size or funding source, she said. However, New Africa Advisors, an emerging markets manager running between $8 million and $9 million, will be retained after the search is complete, she added. The board will discuss the matter July 15.
JM Family Enterprises Inc., Deerfield Beach, Fla., is considering a search for its first Russell 2000 index fund manager, said John Whelan, vice president. The company has $205 million in a defined contribution plan and $33 million in a defined benefit plan. The new manager probably will run about 5% of the total assets. The hiring is for diversification; the funding source is still undetermined, Mr. Whelan said. A decision is expected by October. Watson Wyatt is assisting.
Franklin College, Franklin, Ind., is considering a search for an additional domestic equity manager to diversify its $77 million endowment, said KaAnne Morris, controller. Portfolio style, size and funding source are undetermined. A decision is expected by October.
Brazeway Inc., Adrian, Mich., is considering a search for one manager to replace a domestic and an international fixed-income manager for its $17.5 million defined benefit plan, said David Maxwell, executive vice president. The change is because of underperformance, said Mr. Maxwell, who declined to name the managers but did say they run a total of $6 million. A decision is expected by October.