Kentucky Retirement Systems, Frankfort, is issuing RFPs for a custodial bank. Details may be found on the $12.3 billion fund's Web site, www.kyret.com. RFPs are available by contacting the fund. Proposals are due Jan. 31.
Los Angeles City Employees' Retirement System issued an RFP for a manager to handle a $278 million S&P 500 index portfolio now run by Barclays Global Investors. The $7 billion fund's policy is to review manager contracts at the end of every two contract cycles.
Kern County Employees' Retirement Association, Bakersfield, Calif., completed an asset-liability study and is considering a search for a domestic fixed-income manager in the first quarter. The new mandate will allow investing in international sovereign bonds, said David Deutsch, retirement administrator. Funding for the new $46 million portfolio will come from Fiduciary Trust, which runs $46 million in global fixed-income for the $1.6 billion defined benefit plan. Mr. Deutsch said no decision has yet been made to terminate Fiduciary. Further results of the study included reductions in real estate and emerging markets allocations and an increase in the fund's alternative investments allocation to 4% from 0.5%. Mr. Deutsch did not comment on the reductions.
Montana Board of Investments, Helena, may consider investing a small portion of its $2.7 billion domestic equity portfolio in an indexed strategy, said James Penner, chief investment officer. Currently, the board, which oversees $5.5 billion in pension assets, manages the entire U.S. equity portfolio internally. No decision has been made on the size of the portfolio or whether it would be managed internally or externally. "We would start very small and monitor the progress and without any commitment on how far we're going and how fast," Mr. Penner said. The board will address the issues in early March. No consultant is involved.
Maine State Retirement System, Augusta, has asked consultant Ennis Knupp to conduct an asset allocation study during the first quarter of next year, said Gary Emery, investment officer for the $7.1 billion fund. Any changes will be based on the board's "ability to accept risk." "It's premature to talk about managers," Mr. Emery said. Fund executives "might not do anything" after the study. The fund's current target allocations are: 48% domestic equity; 15% international equity; and 37% fixed income. The current allocation is slightly overweight in equities, with 51% in domestic equity, 15.5% in international equity and 33.5% in bonds.