Public Employees' Retirement System of Mississippi, Jackson, issued RFPs for a tactical asset allocation manager and a global all-cap equity manager to handle $75 million each, said Frank Ready, executive director of the $17.5 billion fund. The firms chosen will be the first for the plan's new alpha fund, established to allocate up to 5% of the $9.24 billion equity portfolio to alpha-producing strategies. The RFPs are available on the pension system's website at http://www.pers.state.ms.us/rfp_index.html and do not specify deadlines for proposals, but the fund is close to closing both searches, he said. Plan officials will likely make selections in June. Separately, fund officials will review private equity strategies over the course of the year for possible investments. Callan is assisting.
Municipal Fire & Police Retirement System of Iowa, Urbandale, issued an RFP for a tactical fixed-income manager to run $38 million, said Dennis L. Jacobs, executive director and chief investment officer. The manager will have wide latitude in diversifying among high-yield, emerging-markets, core and other fixed-income styles, Mr. Jacobs said. He expects the $1.4 billion system will set limits during contract negotiations on the amount the manager can allocate to any sector. Funding will come from terminating GoldenTree Asset Management, which manages the money in high yield; GoldenTree is no longer managing long-only high yield. The RFP is available from the system; proposals are due in mid-April. Summit Strategies is assisting.
Alaska Permanent Fund Corp., Juneau, is searching for an investment consultant, said Richard Shafer, chief investment officer. The contract of Callan Associates, current consultant to the $30 billion fund, expires in June; the firm can rebid. The RFP is available at www.apfc.org. Proposals are due April 15; the new contract will take effect July 1.
New York City Retirement Systems are seeking a shareholder research firm. Comptroller William C. Thompson issued the RFP for the $88 billion systems; his goal is to pressure public companies in which the city invests for better corporate governance and ethics, said Yvette Jackson, a spokeswoman. The RFP is available by e-mailing Eric Wollman, an attorney in the comptroller's office, at [email protected] Proposals are due April 18.
California State Teachers' Retirement System, Sacramento, will consider expanding its currency overlay program, including eventually hiring one or more external currency overlay managers, according to a staff memo to the investment committee of the $126.9 billion pension fund. Active international equity managers, which run half of the fund's $31 billion in international stocks, can actively hedge only against the dollar's rise, but they lose money when the dollar declines. A review by Callan recommended expanding currency management to cover foreign private equity and real estate. Callan also recommended CalSTRS add use of futures contracts and longer-dated forwards as hedging instruments and be allowed to invest in the Australian dollar.
Los Angeles Fire and Police Pension System later this year will look for a hedge fund-of-funds manager to run up to $100 million, said Tom Lopez, CIO. The allocation is new; funding will come from cash. Alternatives consultant Pension Consulting Alliance will assist the $12.2 billion system in developing a fund-of-funds investment policy.
Ohio Public Employees Retirement System, Columbus, plans to add about $1 billion in private equity partnerships over the next year or two to fill its 4% target allocation, said Greg Uebele, director of alternative investments for the $64.5 billion fund. "We're continuing to build our new private equity program and are actively seeking new relationships with a view to minimizing vintage year and subclass risk exposures while targeting the best opportunities," he said.
University of Tennessee, Knoxville, is conducting an asset allocation study of its $500 million endowment, said Charles M. "Butch" Peccolo, vice president and treasurer of the university. It will likely be finished by June 30, the end of the school's fiscal year. Consultant Fund Evaluation Group is assisting with the study.
Knoxville (Tenn.) City Employees' Pension Fund will meet with consultant Summit Strategies regarding alternative investments, said Mike Cherry, executive director. The board of the $477.6 million pension fund called a special meeting for April 13 to begin talks about the possibility of adding hedge funds, private equity or other alternatives.
Montana Board of Investments, Helena, might increase its private equity investments to about 7% of total assets from 4%, following a staff recommendation, said Carroll South, executive director. Details have not been determined.