CalPERS staff backs 2 for growth portfolios
SACRAMENTO, Calif. - CalPERS staff recommended hiring Goldman Sachs Asset Management and Franklin Templeton Institutional to run concentrated growth and all-cap growth stock portfolios, respectively. If approved by the $151 billion California Public Employees' Retirement System's investment committee May 13, staff then will determine how to reallocate CalPERS' $4 billion in externally managed domestic growth stock assets to fund the new portfolios.
Four of the Sacramento-based system's five existing growth managers have underperformed their benchmarks; three use very quantitative styles; and all invest primarily in large-cap stocks. Goldman Sachs currently manages $790 million in domestic growth stocks for CalPERS and is on probation for performance, according to Wilshire Associates. Other existing growth-stock managers are Brown Capital; Geewax, Terker; Oak Associates; and Putnam Investments.
CalSTRS changes benchmark to Russell 3000 (ex-tobacco)
SACRAMENTO, Calif. - The $101 billion California State Teachers' Retirement System approved a staff recommendation to switch to the Russell 3000 index (ex-tobacco) as the benchmark for its $40.9 billion in domestic equity portfolios, of which one-fifth is run by external active managers. The board will meet in closed session later this year to set the transition of its $32.7 billion in passive portfolios, which currently track the S&P 500 index and an extended-market index, both of which are ex-tobacco.
Montgomery County tabs private equity finalists
ROCKVILLE, Md. - The $1.7 billion Montgomery County Employees' Retirement System selected two finalists in its search for a firm to manage up to $60 million in a private equity fund-of-funds portfolio, said Patrick Bell, director of pension investments at the Montgomery County Board of Investments He would not identify the firms.
Officials at the system will decide whether to hire one or both firms at its June board meeting, he said. The search resulted from a new 5% allocation to alternative investments, Mr. Bell said. Funding will come from reducing one of the system's index funds managed by Barclays Global Investors; which one will be determined later. The change was made as an enhancement to the system's domestic equity program, he said.
Also at the June board meeting, the investments board will decide whether to add a stable value option to the county's $200 million 457 plan. Wilshire Associates is assisting.
ING consolidates its U.S. asset management operations
AMSTERDAM - ING Asset Management consolidated its U.S. operations into a new division, ING Investment Management U.S.; it will be headed by Tom Balachowski, chairman of ING Investment Management Global. No job losses are expected "for the foreseeable future," said Ward Snijders, ING Investment Management spokesman.
The new division will consist of four business units.
ING Investment Management, headed by CEO Robert Crispin, will provide asset management to ING Group's insurance affiliates and other U.S. institutions.
Aeltus Investment Management will provide asset management to institutional clients and subadvised mutual funds under incumbent CEO John Scott Fox.
ING Furman Selz Asset Management has been renamed ING Alternative Assets and will be run by Paul Gyra. Mr. Gyra was president and CEO of Baring Asset Management North America; he will be replaced by Michael Brown, former head of legal affairs at BAM North America.
ING Managed Accounts and Furman Selz Capital Management will be run by Mike Delfino, former head of ING Managed Accounts, Mr. Snijders said.
Edmund Hajim will retire within the next few months, Mr. Snijders said. Mr. Hajim was chairman and CEO of ING Aeltus Group and ING Furman Selz Asset, and CEO of Furman Selz Capital.
LaSERS officials on lookout for new executive director
BATON ROUGE, La. - The Louisiana State Employees' Retirement System is searching for an executive director to replace Glenda Chambers, who is leaving in July to become executive director of the National Association of State Retirement Administrators. The $6.1 billion system is doing the search internally and hopes to have a new executive director by the end of summer, said Sue Ellen Lewis, a LASERS spokeswoman.
Universe median fund return declines in 1st quarter
PITTSBURGH - The median fund in the Russell/Mellon Master Trust Universe returned 1.09% in the first quarter, down from 7.18% in the fourth quarter. The median fund return for the year ended March 31 was 3.1%. Non-U.S. equity was the best-performing asset class in the first quarter, according to Russell/Mellon, up 2.19%.