CalPERS may up alternatives
CalPERS staff is calling for boosting allocations to real estate and private equity by one percentage point each, to 9% and 7% of assets, respectively, while trimming global bonds to 26%, from 28%. U.S. and international equities would remain constant, at 39% and 19%, respectively.
The staff of the $136 billion fund also seeks greater flexibility in making tactical shifts - ranges of 60% to 70% for stocks, 21% to 31% for fixed income and 7% to 11% for real estate. The staff may also suggest changes of up to two percentage points in target allocations.
Consultant Wilshire Associates recommended boosting foreign stocks to 20% of assets, while reducing domestic stocks to 37% and trimming fixed income by only one point. Wilshire's real estate and alternative increases mirrored the CalPERS staff's.
The investment committee will consider the changes Oct. 15.
Alaska scuttles 2
The $21.5 billion Alaska Permanent Fund terminated Alliance Capital, which ran $375 million in active domestic fixed income, and Dresdner RCM, which ran $120 million in international equities, said Joan Cahill, spokeswoman.
The fixed-income assets were parked in an internal bond portfolio while the system searches for a new manager; the international equity assets were added to a similar portfolio run by Capital Guardian Trust.
Callan Associates is the consultant.
Reynolds puts 2 on watch
R.J. Reynolds Tobacco Holdings put two managers on informal watch for performance, said Kathryn Premo, director of pension and investments: Metropolitan West Asset, which runs $120 million in an enhanced index portfolio benchmarked to the S&P 500, and Alliance Capital, which manages $120 million in active domestic large-cap growth equities, Ms. Premo said. The $2 billion plan is reluctant to terminate these managers because of strong past performance, she said. The status of each manager will be determined in the next month. Frank Russell is advising.
Chris Scibelli, Metropolitan West marketing director, declined comment; Stephanie Giaramita, Alliance Capital spokeswoman, did not return calls seeking comment.
Progress buyout dead
Progress Investment Management executives could not reach agreement on the terms of a management buyout from parent Columbia Management, and Marx L. Cazenave, Progress chairman and CEO, resigned. Thurman White, Progress president, now will head the company; there are no plans to replace Mr. Cazenave, said Charles Salmans, Columbia spokesman.
Progress will remain a stand-alone subsidiary of Columbia, Mr. Salmans said.
AMR hires Bear Stearns
AMR Investment Services hired Bear Stearns Asset Management to run $150 million in active domestic large-cap value equities for American Airlines' $5.5 billion pension plan, said William F. Quinn, president of AMR. Funding will come from new contributions.
Miami Beach goes overseas
The $400 million Miami Beach Pension Fund for Firefighters & Police Officers hired The Boston Co. to manage $12 million in an active international value equity pooled account, said George Ling, director of investment consulting services with GRS Asset, consultant to the plan. Funding came from reducing fixed income.
4 managers on watch
Fluor Hanford put three managers on watch for performance and another for personnel changes, said Michael Hradec, manager of benefits accounting and plan administrator at the $750 million pension plan.
On watch for performance are: Metropolitan West Asset, which runs $64 million in active domestic core fixed income; Reams Asset, $64 million, active domestic core fixed income; and Wellington, $82 million in active domestic large-cap value equity. Columbia Management, which handles $51 million in active domestic small-cap growth equity, is on watch because of staff changes, Mr. Hradec said.
Ohio PERS' enhanced index
The $48 billion Ohio Public Employees Retirement System launched a $4.5 billion internally managed domestic equity enhanced index portfolio, said Neil Toth, director of investments. Funding will come from terminating a $4.5 billion internally managed Russell 1000 fund.
San Bernardino cuts consultant
San Bernardino County Employees' Retirement Association terminated Ennis Knupp as its general consultant, said Tim Barrett, executive director and CIO. The $3.2 billion fund expects to begin an invitation-only search for a new general consultant, pending approval by the fund's investment committee and board in early November, he said.
Indiana gives passive to BGI
The $9.7 billion Indiana Public Employees Retirement Fund consolidated its passive equity portfolios with Barclays Global Investors, said Patricia J. Gerrick, CIO. It terminated UBS Global, which ran a $300 million enhanced domestic index portfolio, and State Street Global Advisors, which ran a $200 million EAFE index fund. Mercer Investment Consulting assisted. Also, attorney Fred R. Biesecker was named interim executive director, replacing E. William Butler, who resigned. Plan officials hope to have a new executive by Dec. 31.
New Haven taps Sasco
The $250 million New Haven Police & Firemen's Pension Fund hired Sasco Capital to run an active domestic midcap value equity portfolio, said Mark Pietrosimone, city controller. The allocation will be determined next month. Funding will come terminating Valenzuela, which ran a $14 million portfolio in a similar style.
Cerulli closes practice
Jim Falwell, senior consultant, left Cerulli Associates, and Managing Director Peter Starr will leave by the end of the year as the firm shuts down its general vendor consulting practice. Kurt Cerulli, president, said the firm's consulting work has shifted to a research orientation in the past 18 months, focusing on market data collection and analysis. "This change really is a recognition of how we've been operating over the past year or so. We had two people who were not likely to fit into a more research-driven consulting practice," he said.
UBS picks Pfeffer
Frank P. Pfeffer will join UBS Global Asset Management as managing director and head of institutional business development and marketing, Americas. The position is new, said Brian Storms, president and chief executive officer. Mr. Pfeffer had been a managing director and institutional client adviser at J.P. Morgan Fleming Asset Management, where he will not be replaced.
Tower taps NYLIM
Tower Automotive Inc. has hired NYLIM Retirement Plan Services to manage its $106 million defined benefit plan. The plan had been run in a multimanager approach. NYLIM already is the semibundled provider for Tower Auto's $300 million 401(k) plan, said Richard Burgess, head of human resources.