Waltham (Mass.) Contributory Retirement System, with $115 million in assets, is searching for an entire lineup of managers to run domestic small-cap, midcap and large-cap, and international stock portfolios, as well as alternative investments and real estate, following the approval of a new asset allocation recommended by consultant Wainwright Investment Counsel. The system had all of its assets with State Street Global Advisors in index funds after terminating BankBoston, its sole manager, this year. The new asset allocation is: domestic large-cap value, 9.4%; large-cap growth, 8.6%; midcap value, 7.9%; midcap growth, 7.1%; small-cap value, 6.2%; small-cap growth, 5.7%; EAFE, 9%; international emerging markets, 2.2%; short-term bonds, 7.3%; intermediate bonds, 9%; long-term bonds, 7.2%; high-yield bonds, 5.1%; international fixed income, 4.3%; real estate, 6%; and 5% other alternative investments, with an expected return of 11.5. RFPs will be available at the beginning of August; the deadline for proposals is the end of August.
Iowa Public Employees' Retirement System, Des Moines, issued an RFP for a bond manager to run $1.2 billion, said T.J. Carlson, investment officer for the $14.9 billion fund. Proposals are due Aug. 6. The fund is eliminating its strategic global bond mandates in favor of tactical exposure and is reducing duration risk, Mr. Carlson said. Funding will come from three terminated global bond managers. Wilshire Associates is assisting.
City of Allentown, Pa., issued an RFP for a core large-cap U.S. equity manager to replace Beutel Goodman Capital Management, which runs $26 million in large-cap value U.S. equities for the $150 million fund. The reason for the switch is a style change, said Joseph McDonald, treasurer. Proposals are due Aug. 15. Beutel Goodman will be allowed to rebid, said Michael Cosack, of Spagnola-Cosack, the fund's consultant. A decision is expected by October.
Texas Permanent School Fund, Austin, issued an RFP for up to three consultants. Contracts with Holbein Associates, which is the $20 billion fund's performance measurement consultant, and IAS, which does asset allocation and money manager selection, expire soon. Trustees will select one to three firms to perform these functions at the board meeting in September.
Middlesex County Retirement System, Cambridge, Mass., is searching for real estate and alternative investment managers to run a combined total of about 12% of assets, according to Dick Zaccaro, the Wainwright Investment Counsel consultant who is assisting. The system, with $520 million in assets, is hoping to diversify its real estate investments geographically and by type. The system will look at both closed- and open-end investments, Mr. Zaccaro said. The system also will look at early-, middle- and late-stage alternative investments, and might consider adding hedge funds to the mix, he said.
Oklahoma Public Employees' Retirement System, Oklahoma City, will issue an RFP for an enhanced index equity manager with a benchmark of the S&P 500 in August. The search is a result of the $4.8 billion fund's asset allocation study. Finalists for the $250 million portfolio probably will be selected in October with a hire in November, said Stephen Edmonds, executive director. The funding is likely to come from an existing equity index portfolio. A final selection in the search for small-cap value equity and international equity managers also is expected at the October meeting.
SKF USA Inc., Norristown, Pa., is expected to issue an RFP next month for an additional international equity manager with a value emphasis to diversify its $540 million defined benefit plan, said Brian Duffy, treasurer. While portfolio size is undetermined, Mr. Duffy said, funding will come from reducing domestic equity investments. A decision is expected by September.
Vassar College, Poughkeepsie, N.Y., is preparing an RFP for its search for two core real estate managers to manage $20 million in private commingled funds. It is expected to be ready in August or early in the third quarter. Separately, the $580 million endowment fund has put its search for a hedge fund manager on hold indefinitely, said Jay Yoder, director of investments. The decision was made at the June board meeting, said Mr. Yoder, who declined to say why.
Alameda County Employees' Retirement Association, Oakland, Calif., is expected to issue an RFP within 60 days for a consultant for its $3.4 billion fund, said Charles Conrad, administrator. The board "wants to see what else is out there and performance is not an issue," he said. Incumbents Watson Wyatt; Callan Associates; Dorn, Helliesen & Cottle; and BARRA RogersCasey are expected to rebid, Mr. Conrad said. No timetable was set for completion.
Pennsylvania Municipal Retirement System, Harrisburg, likely will issue an RFP for an investment consultant in early September, said James Allen, secretary of the board. Trustees plan to start the search soon, because the five-year contract with Dahab Associates expires March 31. The firm will be allowed to rebid. Separately, the $920 million fund is negotiating with Seix Advisors to take over a $100 million domestic bond portfolio from First Union, which recently purchased Tattersall Advisory Group.