Indiana State Teachers' Retirement Fund, Indianapolis, plans to issue RFPs in the next month for one domestic large-cap growth and one domestic large-cap value manager to run $85 million each, said Robert Newland, chief investment officer for the $5 billion fund. The money will come from an S&P 500 index fund run by Barclays Global Investors.
Oklahoma Firefighters' Pension & Retirement System, Oklahoma City, will issue RFPs at the end of August for an active international equity manager or managers to run $80 million, as well as a small-cap growth equity manager or managers to run $88 million, said Ginger Poplin, controller. Credit Suisse Asset Management manages $80 million in an active EAFE portfolio and will be allowed to rebid, she said. The search "doesn't have anything to do" with the recent departure of William Sterling, former managing director of global equities at CSAM; the $1.3 billion system reviews its managers every five years, she said. The small-cap search was spurred by the $1.3 billion fund's recent termination of Wilke/Thompson, which ran $88 million, Ms. Poplin said. The manager's returns were lagging, she said. Mark Thompson, chief investment officer and chairman at Wilke/Thompson, was unable to comment by press time.
Ohio State University's $1.1 billion endowment is searching for an active international manager or managers to run between $30 million and $40 million in equities, said James Nichols, treasurer for the Columbus-based university. The endowment is looking to increase its international equities exposure to between 6% and 7% of the fund. Currently, the fund has 3% in international, run passively by Barclays Global Investors. "We think active will do better than passive," Mr. Nichols said. Funding will come from cash flow.
Kansas State University Foundation, Manhattan, will search for domestic large-cap value and growth managers and midcap value and growth managers next month, said David Weaver, vice president of real estate and investments. The search is being undertaken to diversify the $146 million endowment, he said. The number of managers to be hired and portfolio sizes are undetermined. Funding will come from reducing domestic indexed equity, Mr. Weaver said. Cambridge Associates is assisting. Also, the endowment recently completed an asset allocation study. The new mix is 35% domestic equities; 15% core fixed income; 10% international equities; 10% real estate; 9% alternative investments; 7% emerging markets; 5% absolute returns; 5% high-yield bonds: and 4% natural resources.
City of Los Angeles Deferred Compensation Board is expected to issue an RFP early next month for an administrator for its $24 million 457 plan for part-time employees. Steven Montagna, management analyst, said the incumbent is First Financial Administrators, whose contract expires Dec. 31. Mercer is the board's consultant.
Overhead Door Corp., Dallas, is considering a search for a single manager to invest its entire $22 million defined benefit plan, said Ray Larkin, pension supervisor. Mr. Larkin said the new manager would replace sole manager Bessemer Trust, which runs $9 million in domestic fixed income, $5 million in cash and an $8 million balanced portfolio. Performance is not an issue, he added. The new manager would run the same types of portfolios.
Birmingham (Mich.) Employees' Retirement System is considering a search for an additional domestic large-cap value manager to diversify its $90 million fund, said Thelma Shivel, treasurer. The portfolio size and funding source are undetermined. A decision is expected next month.
City of Harper Woods, Mich., is considering a search for an active, international equity manager to diversify its $40 million defined benefit plan, said Mickey Todd, city clerk. Templeton is the plan's current international equity manager, and its allocation probably would be reduced, Mr. Todd said. Portfolios sizes were unavailable. A decision is expected by September.
Pittsburgh (Kan.) State University Foundation is considering a search to replace Wells Capital Management, a $2 million small-cap to midcap U.S. equity manager for its $26 million endowment, said John Patterson, vice president of business and fiscal affairs. "We're just a little bit nervous about the management team they have in place. So far their returns look good, so performance is not an issue right now," Mr. Patterson said. A decision is expected by December. Corporate Consulting Group is assisting. Rick Villars, vice president of separate accounts for Wells Capital, said, "While we did have one member of our management team leave, we remain focused and will continue to do so."
