General Motors Corp. is considering asset allocation changes to its $89.7 billion pension plan, said W. Allen Reed, president and CEO of General Motors Asset Management, New York, which manages GM's pension plans. The proposed changes are: U.S. equities to 24% to 28%, from the current 29% to 33%; real estate to 8% to 12%, from 7% to 11%; and alternatives to 9% to 13%, from 6% to 8%. Foreign equities will be unchanged at 17% to 21%, and global bonds will remain at 32% to 36%. The plan wants to reduce volatility and allow for more diversification. No timetable was given for the changes.
Corporation of London issued an RFP for six managers to run its entire £800 million ($1.4 billion) in pension plan assets in new absolute-return strategies, said Colin Duck, corporate treasurer. The municipality "has concluded that index-related benchmarks have no relation to paying pensions," Mr. Duck said. The scheme has 88% of its assets in equities and 12% in fixed income and cash, according to its website. Each manager will run about £130 million, he said. Current managers Baring, Fidelity, Gartmore, State Street Global Advisors and Wellington were invited to rebid. Responses are due Jan. 5; selections are expected in April or May.
Ohio Tuition Trust, Columbus, issued an RFP for additional investment managers for its $548 million College Advantage 529 college savings plan. The trust said it was looking for low-cost index investment options to complement the 17 offered by the plan's current provider, Putnam Investments, Jackie Williams, executive director, said in a press release. Proposals are due Jan. 8 and can be sent to the trust, which is conducting the search internally, said Judy Cunningham, public relations manager of the trust. The new options will be launched in the second quarter.
Falmouth (Mass.) Contributory Retirement System will issue an RFP by year's end for a new real estate manager to run $3 million, said Margaret Correllus, administrator and board member. Funding will come from terminating Henderson Global, which runs a similar portfolio, Ms. Correllus said. Trustees of the $51 million plan are concerned about structural changes following Henderson Global's split from Australian parent AMP, she said. Responses will be due in January, and a new manager should be selected by March. Wainwright Investment Counsel is assisting.
Lakeland (Fla.) Employees' Pension Fund in January might look for an active fixed-income manager, said Gary Clark, executive director. Trustees of the $380 million plan are concerned about interest rates and "what's ahead for fixed income," Mr. Clark said. The size of the portfolio and further details about the search have not been determined, he said. Funding will likely come from rebalancing. Asset Consulting Group will assist.
San Francisco City & County Employees' Retirement System plans to issue an RFP in the first quarter for its emerging manager program. The $11.2 billion system's board approved an emerging managers policy, in which up to 10% of any asset class may be invested in one or more emerging manager funds of funds. The RFP is subject to board approval. Angeles Investment Advisors is consultant.
Louisiana Teachers' Retirement System, Baton Rouge, in February will issue an RFP for new active domestic midcap growth equity managers, said Bonita Brown, director of the $10.9 billion system. Five-year contracts of incumbents Forstmann-Leff and Seneca Capital, which run $250 million each, will expire June 30, Ms. Brown said; both firms can rebid. The system's board will determine the portfolio sizes at a meeting in the second week of January. The RFP will be available through the system and through consultant Holbein Associates.
Schaumburg (Ill.) Police and Firefighters' Pension Funds might seek additional fixed-income managers to run about $11 million for each $50 million plan, said Douglas Ellsworth, finance director. Each plan has $35 million in fixed income split between two firms, and officials want to add a third manager to each plan for diversification, Mr. Ellsworth said. Hart Capital and Mitchell Vaught & Walker run $17.5 million each for the police fund, while Hart and Prudential run $17.5 million each for the firefighter plan, he said. If new managers are sought, the bond allocation would be split three ways, but no managers would be terminated, Mr. Ellsworth said. Trustees in January will decide whether to proceed with the search. Further details have not been determined.