Indiana Public Employees' Retirement Fund, Indianapolis, will begin a search for managers for three international equity allocations, totaling up to $750 million. This is the $11 billion fund's first move into the area. Proposals will be accepted between Sept. 15 and Oct. 20. Fund officials will consider hiring more than one manager for each assignment: a $250 million MSCI EAFE index fund, tracking the index within 50 basis points annually, gross of investment management fees and with no hedge on currency exposure; a $125 million to $250 million enhanced EAFE index fund, unhedged for currency risks, its returns to exceed the index over a market cycle of three to five years, net of investment management fees, but with comparable volatility and having a tracking error of 100 to 300 basis points annually; and a $50 million to $250 million active MSCI All-Country World (ex-U.S.) index portfolio, unhedged for currency exposure, its returns to exceed the index over a market cycle of three to five years, net of investment management fees. Managers will be expected to provide exposure on an opportunistic basis to emerging markets, and will have discretion in managing currency exposure. Funding will come by reducing the fund's domestic equity allocation to 55% from 65%. All domestic equity managers will be retained. William M. Mercer is assisting.
Los Angeles City Employees' Retirement System plans to issue RFPs for a $200 million active core EAFE manager and a second active domestic small-cap growth equity manager. Funding for the EAFE manager will come from cash; the funding and allocation for the domestic equity manager will be determined by an upcoming review of the asset class by consultant Pension Consulting Alliance. The $7.7 billion fund's board is expected to vote on issuing the RFPs Sept. 26. If approved, the RFPs would appear on the fund's website at www.lacers.org.
Orange County Employees Retirement System, Santa Ana, Calif., is searching for a large-cap value manager to run $178 million. Existing manager Delaware Investment Advisers, which is on the fund's watch list, will be invited to participate, said Farouki Majeed, chief investment officer of the $4.9 billion fund. Interested managers should contact Callan Associates.
Chicago Transit Authority Employees' Retirement System will search for managers for a new stable value allocation and an additional private equity allocation as part of an overhaul of investment policy, said John Kallianis, executive director of the $1.9 billion fund. No timetable has been set. The system is adding stable value as an asset class, allocating 10% of total assets, which eventually will increase to 23%. It also plans to boost private equities to 6% from 4%. The fund is planning, in the next two years, to reduce: domestic equity to 46% of total assets from the current 67%; international equities to 5% from 8%; domestic fixed-income to 10% from 15%. It also will eliminate its 1.5% international bond allocation.
Fulton County Employees' Retirement System, Atlanta, expects to begin searching soon for an active small-cap to midcap domestic growth equity manager as a result of an asset-allocation study the $930 million fund completed earlier this year. Interested firms should contact Watson Wyatt. No completion date has been set.
Worcester (Mass.) Retirement System will release RFPs for new private equity managers. The $640 million plan expects to give $10 million each to a European fund of buyout funds, a domestic buyout fund and a domestic venture capital manager. The moves are being made to meet new target allocations, said Jim DelSignore, city auditor and trustee. Most of the funding will come from cash. The RFPs will be available from the Massachusetts Public Pension Forum's website, www.mppf.org. Meketa is assisting.
Electric Power Board of Nashville issued an RFP Sept. 8 for a consultant. The $180 million plan's contract with PaineWebber expires Jan. 31. Decosta Jenkins, senior vice president and CFO, said he hoped to reduce the fund's "administrative burden" by hiring a consultant that offers a wrap fee program. Interested firms should send e-mail to [email protected] Proposals are due Oct. 6.
IPE-Quest.com is searching for a venture capital manager to handle a $10 million to $50 million private equity biotech portfolio for a large continental European pension fund. An RFP was posted in mid-September on the firm's website -- www.ipe-quest.com -- for what is believed to be the first venture capital search to be conducted on the Internet, said Tony Hay, sales director at IPE-Quest.com. The RFP will remain on the website until Nov. 1.
Western Digital Corp., Irvine, Calif., plans to issue an RFP for a service provider for its 401(k), health & welfare and disability plans this fall. T. Rowe Price is the current provider for the $160 million 401(k) plan, the only one of the three that uses outside firms. The sizes of the other funds could not be learned. It is expected to completed by the end of the year.
