Nashville (Tenn.) Metropolitan Board of Public Education Teacher Retirement Plan is searching for two active domestic large-cap equity managers to run $17 million each, one in growth and one in value, and an active emerging markets equities manager to run $4 million, said Tom Eddlemon, assistant metropolitan government treasurer. The portfolios would be new, and emerging markets would be a new asset class for the $92 million pension plan. Cohen Klingenstein & Marks currently manages a $7.5 million active domestic large-cap growth portfolio for the fund, its only large-cap investment, Mr. Eddlemon said. Plan officials are seeking more large-cap investments and greater diversification. Funding for each manager will come from a general rebalancing, Mr. Eddlemon said, noting no managers would be terminated. The RFPs are available on the website of plan consultant Dahab Associates at www.dahab.com. Proposals for all three searches are due Aug. 15. Barry Bryant, consultant with Dahab, referred questions to plan officials.
New Jersey Division of Investment, Trenton, reissued an RFP for a custodian for its $14.5 billion cash management fund. The original RFP was canceled because the scope of services changed; the custodian will also provide fund accounting and administration services. The fund's current custodian, State Street Corp., may rebid. Proposals are due at 2 p.m. EDT Aug. 17. More information is available at www.state.nj.us/treasury/purchase/bid/attachments/38215rfp.pdf.
Oklahoma Police Pension & Retirement System, Oklahoma City, is considering an initial real estate investment of up to 5% of the $1.4 billion pension fund's assets, said Robert J. Wallace, executive director. He said discussion of a real estate portfolio is the result of an asset allocation study conducted earlier this year by plan consultant Asset Consulting Group in conjunction with the system's board. A manager search might not take place until the first quarter of 2006, he said.
Louisiana State Police Retirement System, Baton Rouge, is updating a prior asset-liability study to see how it can further exceed its 7.5% assumed actuarial rate of return and add diversification, said Irwin Felps, executive director. The $340 million plan's consultant, UBS PRIME Asset Consulting, conducted the study with actuary Hall Actuarial Associates in 2003. Plan officials recently discussed adding alternatives to the asset allocation, which the updated study will reflect, he said. Mr. Felps said he expects the update to be complete in three to six months, at which time plan officials will have a better idea of what alternative asset classes they might add. The pension plan's investment policy currently prohibits alternatives, so it would also need to be amended, he said.
University of Cincinnati is conducting an asset allocation review that could result in an overhaul of the $1 billion endowment, said Gerald A. Siegart, assistant vice president. There is no timeframe for completion. The review was prompted by the school's recent hiring of Thomas D. Croft, former managing director and chief investment officer of fixed income at DuPont Capital, as its first chief investment officer. "We had been managing the investments by committee, and it got to the point where there are a lot of complex investments and we needed someone full time," said Mr. Siegart. The endowment's current asset allocation is 43% equities; 26% fixed income; 25% alternatives, including hedge funds, real estate and private equity; and 6% cash.
Xavier University, Cincinnati, will consider an initial investment in alternatives as part of an asset allocation study of its $100 million endowment to begin in September. "Right now, we're not specifically talking about any particular type of alternative investment. We will look at every type of alternative," said Scott Harsh, president of Fund Evaluation Group, Xavier's general consultant. The study will likely be finished by year end.
Public Employees' Retirement Association of Colorado, Denver, will conduct an asset-liability study toward the end of the year, said Jennifer Paquette, deputy executive director, investments. The $32.3 billion fund will look into possibly extending the duration of the bond portfolio. The fund's last asset-liability study was conducted in 2002, she said. Consultant Ennis Knupp will assist.
Denver Employees Retirement Plan might increase the non-core portion of its real estate portfolio, said Steven Hutt, executive director. The $1.7 billion plan has a 70% core/30% non-core split. Fund officials are looking for higher returns. The plan's real estate consultant, the Townsend Group, will provide a recommendation to the board in September. Real estate makes up 10% of the plan's total assets.