Louisiana State Employees' Retirement System, Baton Rouge, plans to search for a merger arbitrage manager for a $250 million mandate, and for domestic large-cap growth, large-cap value, small-cap value and tactical asset allocation managers in the next few weeks. Robert Borden, chief investment officer, wouldn't say how big the mandates would be. In addition, the $5.7 billion fund will allocate 5% of assets to an internally managed midcap index fund, said Mr. Borden, chief investment officer. The changes are the result of an asset allocation study. The fund's allocation to domestic large-cap stocks will be reduced to 28% from 34%, and global fixed income will be cut to 5% of assets from 10%. Searches for international large-cap growth and domestic small-cap managers are nearing completion, Mr. Borden said. Each will manage $250 million. He declined to say if any existing managers would be released. New England Pension Consultants assisted.
State of Wyoming Loan and Investment Board, Cheyenne, is searching for an S&P 500 index manager to handle $300 million to $500 million for the $3.7 billion permanent fund, said Sandra Hudson, financial analyst. The funding source has not been determined. The RFP is available from the board or the state treasurer's office. Proposals are due July 17, and a decision is expected to be announced in late August. RV Kuhns is assisting.
Mills College, Oakland, Calif., is searching for a domestic growth equity manager, probably active midcap or large-cap, to handle $12 million, said Peter Michell, vice president for finance administration and treasurer. The $174 million endowment is adding the portfolio to reduce its cash allocation. No RFP was issued. Consultant Cambridge Associates is contacting firms it wishes to interview. A decision is expected in late July.
Mississippi Health Care Trust Fund, Jackson, is screening active small-cap and midcap domestic equity manager candidates for a search to begin in August. The $500 million fund will approve a list of 25 to 30 firms that will receive RFPs in late August, said Ron Logan of consultant Logan Partners. The fund plans to hire two to four managers to handle a total of $100 million.
Knoxville (Tenn.) City Employees' Pension Fund will begin an invitation-only search late this month or early August for an active large-cap growth domestic equity manager to run from $30 million to $76 million, said Mike Cherry, executive director of the $450 million pension fund. Funding will come from a $76 million investment in a commingled fund that was managed by STI Capital, which was terminated. Consultant Mercer recommended placing the $76 million in a more active growth-oriented style of management. Potential candidates will be contacted by the consultant.
Seattle City Employees' Retirement System will search for an additional directed brokerage firm to complement incumbent Broadcourt in doing commission recapture. The $1.6 billion fund expects to issue an RFP soon, although no dates have been set for issuing RFPs or returning proposals, said Mel Robertson, acting executive director. Interested firms should fax their e-mail addresses to the system at (206) 386-1506.
State Board of Administration of Florida, Tallahassee, approved a $2.5 million budget for its new defined contribution program, said Tom Herndon, executive director. The money will be used for 12 consultants and salaries for six board employees. The $101 billion board already hired its general consultant, Ennis Knupp, as a consultant for asset transition services. It also expects to hire a general consultant; a third-party administrator; and separate consultants to draft RFPs for third-party services, help develop education programs, help develop selection criteria and select managers. It also may hire an independent adviser to make sure participants in the defined benefit and defined contribution plans are treated equally. The board is in negotiations with a general consultant/third-party administrator, which it expects to name in the next couple of weeks. The board will make other decisions pending that hiring.
