Ohio Bureau of Workers' Compensation, Columbus, is searching for an international equity manager. The $18 billion welfare benefits fund expects to give its new manager a $150 million to $200 million portfolio. Responses to the fund's RFP are due back in mid- July. Interested parties should contact the fund, said Bob Cowman, chief investment officer. In addition, the fund's planned search for a private equity manager is being delayed while the international search gets under way. Mr. Cowman said, Under new target allocations, resulting from a study by consultant Callan, the fund has designated 3% of total assets to private equity.
California Public Employees' Retirement System, Sacramento, plans to select a real estate adviser to oversee a new $500 million investment program capitalizing on the convergence of the technology and real estate industries. Brad Pacheco, spokesman for the $175 billion system, said CalPERS this week will send RFIs to the following real estate advisory firms: AEW Capital Management; Bank of America Securities; Chase H&Q; Lehman Brothers; Morgan Stanley; PaineWebber; RREEF Funds; TA Realty; and Thomas Weisel Partners. More names may be added to the list. Interviews are scheduled for late June and July. The system wants to broaden its $8.3 billion real estate portfolio by investing in companies and properties likely to benefit from the development of real estate technology infrastructure and services. CalPERS' board also approved a pre-search RFP for a global custodian to determine the universe of banks capable of handling the fund's assets and adopted criteria for the search. Current custodian State Street Bank's contract expires June 30, 2001. The selection criteria include a requirement that candidates have had overall custodial assets of at least $1 trillion for the past three years. Also, candidates must be able to safe keep all CalPERS' current asset classes and those that might be added in the future. The pre-search is expected to take three weeks; finalists interviews are not anticipated for about five months.
West Sussex County Council Superannuation Fund, Chichester, England, is looking for a manager to handle a 400 million ($597 million) balanced portfolio now run by Phillips & Drew. A decision is expected by the end of the year. Despite concerns over Phillips & Drew's performance, the manager will be allowed to re-apply for the mandate, said Rosemary Burfoot, group technical accountant for the 850 million fund. "There is no presumption for change," she added. "The client has always been sympathetic to our views, but clearly at the end of the day it does come down to performance, which is on a steadily improving trend," said Mark Powers, fund director for Phillips & Drew.
City of Phoenix Employees' Retirement System will begin a search for an international equity manager by late June. The $1.3 billion plan's consultant, Becker Burke Associates, recommended a 10% allocation to the asset class over the next two years. Within the international allocation, the plan intends to have 15% in emerging markets and 85% in EAFE. Retirement administrator Duamel Vellon expects the search to begin within three to four weeks. Interested firms should contact Becker Burke. Funding for the new allocation will come from reducing domestic fixed income to 35% from 45% of the plan's assets. The plan's 55% allocation to domestic equities will remain the same.
Saratoga County, Ballston Spa, N.Y., is considering the addition of a 401(a) plan because of requests of an employees' union. A decision on the implementation of such a plan is expected in the summer. The county already offers a $4 million 457 plan, said Jack Kalinkewicz, personnel associate.
