Amalgamated Transit Union, Local 1575, San Rafael, Calif., will issue RFPs for a manager to run up to $40 million in active domestic fixed income, and up to three managers to run a total of $40 million in active domestic value equities, said Robin Davis, administrator. The $101 million pension plan may hire separate large-cap, midcap and small-cap managers for the value equity mandate, he said.
Funding will come from terminating Dresdner RCM in fixed income and by reducing to $20 million an active domestic large-cap growth equity portfolio also managed by Dresdner, Mr. Davis said. Plan officials are happy with Dresdner’s large-cap growth equity performance, but want to diversify to value, he added.
The searches will begin within the next two months, once a contract is finalized with new consultant KPMG, Mr. Davis said. The plan previously did not use a consultant, he said.
