RICHMOND, Va. -- Virginia Retirement System board of trustees Chairman Ed Burton suggested the $39.7 billion pension fund cut back its equity exposure to 50% from 70% of total assets.
"That is a radical move, but at the risk of being called a market timer, which I am not, I would like to call for a dramatic reduction in the equity exposure," he said at the system's annual board retreat in Charlottesville. Nancy Everett, chief investment officer, said the Richmond-based fund will review its asset allocation in the fall; its last asset allocation study was conducted four years ago.
San Diego Electrical raises allocations in 2 classes
SAN DIEGO -- The $205 million San Diego Electrical Pension Trust raised its allocations in real estate to 20% from 15% and international equities to 10% from 5%, according to Ken Stuart, administrative manager.
Funding comes from fixed income, which was lowered 10 percentage points to 20%. Domestic equities remain at 50% of assets.
The fund also shifted $5 million from its fixed-income portfolio into commingled mortgages.
The changes were recommended by consultant Investment Performance Services. No managerial changes will take place as a result of the allocation shifts.
Nevada college system eyes allocation shift to equity
RENO, Nev. -- The University and Community College System of Nevada, Reno, is considering allocating a portion of its $210 million operating cash fund to equity. The assets are allocated to fixed income, said Timothy Ortez, director of banking and investments. Also, Mr. Ortez said he will resign his position effective Aug. 1. A search for a replacement has not yet begun.
Brockton plan to interview for $22 million portfolio
BROCKTON, Mass. -- The Brockton Contributory Retirement System will interview seven undisclosed money managers on June 29 for a $22 million small-cap to midcap domestic growth equities portfolio, said Harold P. Hanna Jr., executive director.
Funding would come from a $10 million domestic small-cap growth portfolio managed by Deutsche Asset and a $12 million domestic midcap growth portfolio run by Zak Capital.
Small-cap growth equity frequently outgrows its classification, Mr. Hanna said, so the $190 million system wants to have one manager handling both asset classes to prevent style drift. "It all depends on who you speak to on where small-cap ends and midcap begins," he said.
Wainwright Investment Counsel is assisting.
New Hampshire ponders more venture-cap managers
CONCORD, N.H. -- The New Hampshire Retirement System, Concord, is considering hiring one to three additional venture capital managers to handle a total of $50 million for the $5 billion plan. The money has been allocated to the asset class but not yet placed with a manager, according to Ed Theobald, chairman of the board of trustees. Potential candidates will be approached by consultant Evaluation Associates. A decision is expected in August. The plan has 30 venture capital managers handling a total of $200 million.
Participants to direct Bio-Rad profit-sharing plan
HERCULES, Calif. -- Bio-Rad Laboratories Inc., Hercules, is converting its sponsor-directed $45 million profit-sharing plan into a participant-directed plan as of July 1, said Ronald Hutton, treasurer. Union Bank of California will remain as service provider. The plan's 14 options will remain the same. Union Bank is also service provider for the firm's $80 million 401(k) plan.
Chicago teachers fund adds to Brinson allocations
CHICAGO -- Public School Teachers' Pension & Retirement Fund of Chicago is allocating $35 million to Brinson Partnership Fund and $15 million to the Brinson European Fund. The $10 billion pension fund already has $40 million in existing private equity investments with Brinson. Funding for the allocations has yet to be determined, said Mike Nehf, executive director. Mercer assisted.
Anchorage UFCW Local 1496 terminates Duff & Phelps
ANCHORAGE, Alaska -- United Food and Commercial Workers Local 1496, Anchorage, terminated Duff & Phelps, which managed a $30 million active large-cap value domestic equity portfolio.
The $184 million plan is uncomfortable with the manager's recent personnel turnover, said Walter Stuart, health and welfare committee chairman. A Duff & Phelps spokesman said the firm is "disappointed."
The plan has begun a search for a value manager to replace Duff & Phelps. It also is considering splitting the money between the new manager and a new index fund manager, but details haven't been decided. Mercer is assisting.
Sprinkler industry Local 669 closes on 2 $15 million loans
LANDOVER, Md. -- National Automatic Sprinkler Industry Local 669 Pension Fund, Landover, closed on two $15 million loans with The Tuckerman Group, said Geena Davis, an accountant with the $2.5 billion system. One is a mezzanine loan to fund the redevelopment of 250 Marquette Ave., Minneapolis, for technology tenants. The other is a subordinated secured loan to renovate a former Beatrice Foods cold storage warehouse in Chicago into a luxury residential condominium to be known as Dearborn Tower. The money will come from cash reserves.
Montgomery Watson drops its defined benefit plan
PASADENA, Calif. -- Montgomery Watson Inc., Pasadena, will close its $35 million defined benefit plan and move participants into its $115 million 401(k) plan, according to Don Evenson, executive vice president.
The company is responding to employees' requests for more control over retirement assets. "Employees didn't understand (the defined benefit plan)," he said.
In addition, the 401(k) plan is adding 17 funds to is existing options.
Fidelity will continue as record keeper and administrator.
