Massachusetts Pension Reserves Investment Management Board, Boston, voted to issue an RFP for a manager to run $700 million in active domestic large-cap equities. The money has been parked in an S&P 500 index fund with State Street Global Advisors since the $32.6 billion system terminated the portfolio's previous manager, J.P. Morgan Fleming, for organizational and performance reasons in December 2002. Further details were not available by press time.
Venture Michigan Fund, backed by the state, issued an RFP for venture capital managers. The $150 million fund will provide venture capital to Michigan-based startup technology companies. Funding will come through the sale of debt instruments to Michigan-based banks, insurers and other corporations; venture capital managers "with a significant Michigan presence" will be selected, according to a statement by state Treasurer Jay B. Rising. Michigan Gov. Jennifer M. Granholm established the fund earlier this year as a non-profit corporation, governed by a seven-member board she appoints. Proposals are due Aug. 31 and should be sent to [email protected] Information on the fund is available at www.venturemichiganfund.org. Terry Stanton, public information officer for the treasurer's office, did not return a call seeking more information about the RFP.
Connecticut Retirement Plans & Trust Funds, Hartford, established the Connecticut Horizon Fund for emerging minority- and women-owned managers based in the state, Denise L. Nappier, Connecticut treasurer, said in a news release. The $20 billion system plans to eventually put 2.5% to 5% of total assets into the new fund — which will cover all asset classes — "to enhance portfolio returns through innovations, while nurturing the next generation of investment ideas," according to the release. Further information on initial manager searches was not available, but the system will consider proposals from firms with assets of less than $2 billion, according to the release. "Establishment of this fund will provide the state with opportunities to do business with investment managers with solid track records that have the capacity and capability to add value to the pension fund," Ms. Nappier said in the news release. "This is especially important for smaller Connecticut-based firms whose growth can have a direct impact on the Connecticut economy."
Ryerson Tull Inc., Chicago, will search for an active international core equity manager to replace a firm being terminated for performance, said Terence R. Rogers, vice president of finance and treasurer. Mr. Rogers declined to provide further details. According to the Money Market Directory, Putnam was the $315 million plan's international equity manager as of March 2003.
Georgetown University, Washington, will review the asset allocation, investment policy and governance structure of its endowment and pension fund, which have a combined $800 million in assets. Larry Kochard, the university's new chief investment officer, said Georgetown has a "fairly traditional" asset allocation, with less than 20% in alternatives, he said. Evaluation Associates is assisting. The university may also hire one or more investment analysts to assist in managing its assets, he said. Further details have not been determined.
Boston City Retirement System is conducting an asset allocation study of its $3.5 billion pension fund, the first since the late 1990s, said Robert E. Tierney, executive director. The study should be completed in October. New England Pension Consultants is assisting. The fund's current target allocations are: 41% domestic equity; 22% domestic fixed income; 15% international equity; 10% real estate; 5% international fixed income; 5% venture cap; and 2% cash equivalents.
Maryland State Retirement & Pension System, Baltimore, on Nov. 16 will consider the results of an asset-liability study of the $30.1 billion system, said Joe Coale, spokesman. Steven C. Huber, CIO, has said the study could result in some "tweaking" of asset classes, including a possible increase in alternative investments. The $30.1 billion system's current asset allocation is 50% domestic equity, including two percentage points in private equity; 30% fixed income; 15% international equities; and 5% real estate. Ennis Knupp is assisting.
Pennsylvania Municipal Retirement System, Harrisburg, is conducting an asset allocation study, said James Allen, secretary. "We do one every three years," said Mr. Allen. The study will examine investing in emerging markets equity, hedge funds and international bonds; all would be new allocations, he said. The current asset allocation is 35% domestic large-cap equities; 15% domestic small-cap equities; 15% international equities; 25% fixed-income and 10% real estate. Dahab Associates is assisting the $1.2 billion system.
