Indiana Public Employees' Retirement Fund, Indianapolis, has issued RFPs for fixed-income managers that do not give specific mandates, but ask for information on money managers' strongest bond portfolios, said Bill Butler, executive director of the $10 billion fund. The existing 16 managers were included in the search, which should be finished by the end of the third quarter or the beginning of the fourth quarter, with a total of nine bond managers hired. About 35% to 50% of the $4 billion domestic bond portfolio assets will be indexed, while the rest of the bond assets are likely to be divided between bond managers and minority and emerging managers, Mr. Butler said. Mercer is assisting. The fund also has started an asset-liability study, which should be complete by the first or second quarter of 2000, followed closely by decisions on asset allocation. The current asset mix is 60% equities and 40% bonds.
Ventura (Calif.) County Employee Retirement Association is searching for a global bond manager, a small-cap growth U.S. equity manager and its first Russell 1000 index manager, said Van Perris, administrator. No RFPs will be issued; candidates will be recommended by Asset Strategy, consultant to the $2.1 billion fund. The new global bond manager will replace Delaware International Advisers, which runs $200 million, because of personnel changes, Mr. Perris said; the small-cap growth manager will replace Pilgrim Baxter & Associates, which runs $70 million, because of poor performance; and the Russell 1000 index manager will replace Trinity Investment Management, which runs $200 million in large-cap value U.S. equity, because of a style change and poor performance. Richard Unruh, Delaware Investment president, declined comment. Blake Gall, Trinity Investment chief investment officer, and Gary Pilgrim, Pilgrim Baxter CIO, did not return calls by press time. A decision is expected by October.
Colorado Fire and Police Pension Association, Englewood, approved a range of $20 million to $40 million in additional commitments to private equity deals for next year. Pacific Corporate Group will screen the deals and make recommendations to trustees. The $2.4 billion fund also will begin an asset-liability study as soon as possible, said Bill Morris, chief investment officer. The study should be done by year's end or early 2000. The current target asset mix is: 35% domestic equities; 25% international equities; 18% domestic bonds; 8% global bonds; 8% real estate; 5% private equity; and 1% cash. Separately, trustees terminated Oppenheimer Capital as a large-cap equity manager and will temporarily place the $134 million portfolio in a $75 million Russell 1000 Value index fund managed by State Street Global Advisors. The staff is expected to make a recommendation in another few months on whether to search for another manager. Lastly, board members are considering whether they want to create a directed brokerage or soft-dollar program, and trustees are looking into educating themselves on the practices. No timeframe has been established for a decision.
Orange County Employees Retirement System, Santa Ana, Calif., trustees adopted an asset allocation that increases U.S. equity by four percentage points and reduces U.S. fixed income by the same amount, said Farouki Majeed, investment officer for the $4.4 billion fund. The new target for domestic equities is 34% and domestic fixed income, 33%. Allocations to the other asset classes are unchanged. The board also placed Delaware International Advisers on a watch list for six months because of personnel changes, said Mr. Majeed; the portfolio manager assigned to Orange County's account recently left the firm.
Fairfax County (Va.) Police Officers Retirement System, with $577 million in assets, is conducting a routine review of asset classes and money managers and might consider examining passive domestic equity management at its next board meeting in mid-September, said Laurnz A. Swartz, executive director. "That will be discussed in September, but I'm not sure whether there will be any conclusions," he said.
University of Tennessee, Knoxville, endowment fund trustees are considering adding hedge funds as a separate asset class, said Charles Peccolo, treasurer. Trustees might decide about investing in the asset class at an October trustee meeting. Mr. Peccolo, who oversees the $365 million endowment fund, said they weren't considering a specific type of hedge fund. "It's a very generic discussion right now," he said.
Catholic Healthcare West, San Francisco, is conducting an asset allocation study on its $1.6 billion defined benefit plan to see if changes are necessary, said Jessie Bean, treasurer. Mr. Bean said current investments include domestic fixed income, international equities, domestic equities, real estate and alternative investments. PaineWebber is conducting the study, which should be complete by December.
