The AP4 fund, Stockholm, is searching for active Asian equity managers to run up to 7 billion kroner total, according to Bjorn Linder, chief investment officer of the 134 billion kroner ($12.9 billion) fund. One portfolio will cover Japanese equities, and the other, Asia ex-Japan. Mandates may be split among several managers, but no further details were available. Proposals are due May 11, and a decision is expected in October, he said. The fund has decided for the first time to outsource the active management of Asian equities to enhance investment returns. Also, later this year it will consider outsourcing active management of its sector-oriented equity portfolios, Mr. Linder said. The fund has 5% of total assets invested in Asian equities, most of which is actively managed in-house; a small proportion is managed by external passive managers State Street Global Advisors and Merrill Lynch Investment Management. William M. Mercer is advising.
Peabody Contributory Retirement System, Peabody, Mass., is searching for a manager to run $5 million in active domestic small-cap growth equities, a new mandate for the $90 million pension fund, said Linda Cavallon, executive secretary. The funding source has not been determined, she said. Respondents should have at least $300 million in small-cap growth assets under management and have at least a three-year track record. Requests for the RFP should be submitted no later than May 3 to Ms. Cavallon by phone at (978) 538-5911 or via e-mail at [email protected] A deadline for proposals has not been set.
Fairfax City (Va.) Supplemental Retirement System issued an RFP for a core-plus fixed-income manager to run $13 million. The $90 million plan will fund the allocation by reducing fixed-income portfolios now managed by Bank of America and Standish Mellon; both will be allowed to bid. "I don't think we are trying to exclude anybody. In this market, it's worth re-evaluating where we stand with our managers," said Joel Hendelman, plan board chairman. Proposals are due May 14. New England Pension Consultants is assisting.
Maryland Supplemental Retirement Plan, Baltimore, is searching for a plan administrator for its 401(k), 401(a), 403(b) and 457 plans, which have a combined $1.6 billion in assets. Current administrator PEBSCO National, whose contract expires at the end of the year, can rebid, said Michael Halpin, procurement officer. RFPs are available from Mr. Halpin at [email protected] Proposals are due May 29.
Massachusetts Pension Reserves Investment Management Board, Boston, will search within the next few weeks for an active small-cap emerging markets equity manager to run up to $500 million, said Jerry Mitchell, chief investment officer of the $29 billion system. Funding will come from reducing the portfolios of the system's existing emerging market managers, Capital Guardian, Emerging Markets Management and Schroder Capital, Mr. Mitchell said. A majority of MassPRIM's $1 billion emerging markets equity assets are in large-cap portfolios.
Indiana Public Employees' Retirement System, Indianapolis, will begin a search this summer for one or two all-cap global equity managers to run up to about $300 million total, said Patricia Gerrick, chief investment officer. The $10 billion fund will hire a growth equity firm or, possibly, both a growth and a core equity manager, she said. System officials want to complement the value investing style of Brandes Investment Partners, which will run about $250 million in all-cap global value equities as part of the system's new global investment strategy. Ms. Gerrick said.
California State Teachers' Retirement System, Sacramento, will search for nine new investment options and re-examine three existing funds for its $62 million Voluntary Investment Program 403(b) plan, said Sherry Reser, public information officer. CalSTRS has not finalized details of the search. The new funds will be: intermediate credit bond; Russell 3000; active small-cap to midcap growth equities; active midcap to large-cap value equities; active midcap to large-cap growth equities; active international equities; and three asset allocation funds. CalSTRS staff will look at the top seven to 10 funds in each asset class and select options from those funds, Ms. Reser explained.
Pennsylvania State Employees' Retirement System, Harrisburg, is increasing its domestic fixed-income allocation, according to Sean Sanderson, spokesman. Neither the amount of the increase nor the funding source has been decided. Currently, 18% of the $24 billion fund is invested in fixed income. Manager searches may result, he said. Some or all of the increase also might be distributed among the fund's 14 domestic fixed-income managers. System officials are making the move "to protect our investments so we are not forced to sell equities at a disadvantage (when prices are falling)," said Mr. Sanderson.