Cambridge (Mass.) Retirement System is searching for a venture capital manager to invest $6.5 million for the $386 million system, said Kevin Leonard, the Segal Advisors consultant who is assisting. Proposals are due July 29.
Basic American Foods, Walnut Creek, Calif., is searching for a full-retainer consultant to conduct asset allocation studies for its $30 million defined benefit plan and $250 million 401(k) plan, said Sally Smedal, treasurer. The consultant also will do an an asset-liability study for the defined benefit plan. No RFPs were issued; all proposals are being handled by Ms. Smedal and are due July 16. Ms. Smedal said incumbent Wurts & Associates, rebid. A decision is expected next month.
Electrical Workers, IBEW Local 68 & District 8, Denver, is considering changing the style of a small-cap value U.S. equity portfolio and potentially replacing the manager for that portfolio, said Dwayne Tidwell, business manager. Underperformance is the reason the $350 million defined benefit plan is reconsidering its options, he said, declining to discuss the manager or the amount of the portfolio under scrutiny. The change would be a switch to a growth style, he said. A decision is expected by November.
Great Lakes Protection Fund, Chicago, is considering hiring a REIT manager. The $132 million endowment doesn't have a real estate allocation, although it owns some REITs in its equity portfolios. The fund expects an asset allocation study to be completed by late summer, and the results will be given to the board in September, said Larry LaBoda, chief financial officer. The endowment's current asset mix is 65% U.S. equities, 10% foreign equities, 20% U.S. fixed income and 5% cash. Great Lakes also would like to start a specialty fund that invests in environmentally sensitive securities. "We might put it together ourselves and look for others to invest in it, too," Mr. LaBoda said.
City of Los Angeles' Board of Deferred Compensation Administration later this year plans to search for an administrator for its $24 million 457 plan for part-time employees. Depending on the results of the search process, the board may also seek another investment provider, according to a memo. The plan's current administrator is First Financial Administrators. Its contract expires Dec. 31, although it might be extended because of Y2K considerations. The provider of the plan's single fixed-account type options is American United Life. William M. Mercer is the consultant. The board also approved a contract with Great West Life & Annuity Insurance, the new record keeper and administrator for the $1.3 billion 457 plan for full-time employees.
MidAmerican Energy Co., Des Moines, Iowa, is expected to begin an asset allocation study for its $530 million defined benefit plan by year-end that could produce manager changes, said Tom C. Foster, finance director and investment administrator. Mr. Foster said he does not expect any new asset classes to be added. "But then again, anything can happen with an asset study," he added. The current asset mix is 49% domestic equity, 16% international equity, 30% domestic fixed income and 5% real estate. Hewitt will conduct the study.
