Washington State Investment Board, Olympia, hired Capital Dynamics as its private equity consultant, replacing PCG, whose contract is expiring in December. The board has $6.7 billion in private equity. The $61.3 billion board issued an RFP in February.
Separately, board officials plan to replace the Fidelity Equity Income and Fidelity Independent funds as investment options in the state's $1.9 billion Deferred Compensation Program and $14 million Judicial Retirement Account defined contribution plan. The Equity Income fund has been on watch since December 2004 for performance, and the Independent fund has been on watch since May 12. The board will begin a search later this month for replacement options; interviews are expected to be conducted in early fall, with selections afterward.
Fidelity spokeswoman Deborah Pont said: "Generally, Fidelity cannot comment on decisions made by clients. Both of the funds ... are managed by experienced portfolio managers ... and both of these funds have been very competitive performers over the long term. In fact, they have both have beat their Lipper peer group averages for the trailing five-year and 10-year periods."
The investment board is also searching for domestic enhanced index equity and fundamental metrics index managers, said Liz Mendizabal, spokeswoman. The board seeks a long-only, risk-controlled strategy for the enhanced assignment. The fundamental metrics index is a new strategy based on company fundamentals such as total income, total sales and book equity value, which will be applied primarily to U.S. equity markets and possibly some international markets, she said. The portfolio sizes and funding source have not been determined. Officials plan to conduct interviews in early fall and selections could be made later in autumn. Callan Associates is assisting.