New York City Retirement Systems, with $100 billion in assets, issued an RFP for EAFE index managers, said Jane Levine, deputy comptroller for pensions. Proposals are due by July 31. The contracts of Barclays Global Investors and State Street Global Advisors, which handle a total of $5 billion for the systems, expire Dec. 31; both managers will be invited to rebid. Candidates must have at least $2 billion in EAFE index assets under management.
The Los Angeles City Employees' Retirement System, issued an RFP for a manager to run a $556 million passive fixed-income portfolio benchmarked to the Lehman Aggregate Bond index for the $7.7 billion fund. To qualify, managers should have under management at least $3 billion in passive Lehman Aggregate bond index funds and at least $5 billion in passive domestic fixed income, according to the RFP. Proposals can be posted on LACERS' website, www.lacers.org.
Springfield (Mass.) Retirement System issued RFPs for two managers to handle $40 million each in domestic core and core-plus fixed income for the $280 million plan. Proposals are due by June 30, said Bill Monagle, vice president at consultant Wellesley Group. Funding will come from terminated balanced portfolios, totaling $155 million, managed by Freedom Capital, MassMutual and Wellington. Proposals will be accepted from passive and active managers.
San Francisco City & County Employees' Retirement System is considering revamping its nearly $1.7 billion in international developed-market assets. Currently, Capital Guardian Trust manages a $1 billion portfolio and Oechsle runs $650 million. Carl Wilberg, senior investment officer-equities, said the $12 billion pension fund will examine a variety of strategies and managers. Possibilities include managers with top-down, bottom-up, growth, value, large-cap, small-cap or concentrated strategies. The fund wants interested managers to post their data on consultant InvestorForce.com's online database by June 30. The fund's board has targeted its July 25 meeting for determining whether the fund will proceed with a formal RFP.
Chelsea (Mass.) Retirement System issued RFPs for one core and one core-plus domestic fixed-income manager to run $5 million each. Proposals are due by June 29. The $40 million system wants to reinvest the $10 million it has with an unidentified mutual fund, as it wants to get out of mutual funds, said Bill Monagle, vice president at consultant Wellesley Group.
Falmouth (Mass.) Contributory Retirement System is searching for its first real estate and international equities managers, which will handle $5 million and $7.2 million, respectively, said Margaret Corellis, administrator. The deadline for proposals is July 3. The $53 million system is looking to diversify its investments, she said. Falmouth currently has 43% of its assets in domestic fixed income with Freedom Capital, 56% in domestic large-cap equities with Cutler; and 1% in cash. Funding for the new managers will come from reducing the current managers' portfolios, Ms. Corellis said. Wainwright Investment Counsel is assisting.
St. Paul (Minn.) Teachers' Retirement Fund plans to search for an active large-cap value domestic equity manager to run $50 million to bring the fund in line with its target for the style. The $850 million plan expects to release an RFP in early July, said Eugene Waschbusch, secretary and treasurer. The RFP will be available from consultant Callan.
Watertown (Mass.) Contributory Retirement System likely will search for an international bond manager and an alternative investments manager, said Barbara Sheehan, executive secretary. No date for issuing RFPs has been set, and mandate sizes are as yet undetermined. The $67 million system adopted a new asset allocation. The new mix is 16.5% domestic large-cap stocks; 15% domestic midcap stocks; 14% domestic small-cap stocks; 14% EAFE index stocks; 20% core domestic bonds; 4.5% domestic high-yield bonds; 4% international bonds; 7% real estate; and 5% alternative investments, a new asset class. The previous asset allocation was: 52.3% equities; 26% bonds; 4.8% cash; 5.6% real estate; and 11.3% international investments. Wainwright assisted.