Fonds de Reserve pour les Retraites, Paris, is searching for a transition broker to execute more than €16 billion ($19.9 billion) in transactions on behalf of the €28.2 billion pension plan. Incumbent Goldman Sachs, which is invited to rebid, was hired in July 2004 for a contract that would last for three years or until transaction volumes reached €16 billion, and FRR is expected to hit the volume this year. "This is really a technical point," the spokeswoman said. RFPs are available at www.fondsdereserve.fr, and proposals are due at 10:30 a.m. GMT June 1. No timetable for a selection was given.
The Charles and Agnes Kazarian Eternal Foundation, Wilmington, Del., is searching for U.S., European and Asian private equity and hedge fund managers to run a total of $52 million, the foundation's first allocation to alternatives. Fund officials plan to invest a total of $291 million in the asset class over the next five years, said Christopher Magarian, finance group director. Mr. Magarian declined to provide the asset size of the foundation. Interested managers should contact Mr. Magarian at [email protected] No further details were available.
University of Illinois Foundation, Champaign, is searching for a specialist hedge fund consultant or a customized hedge fund-of-funds provider to assist in investing $90 million in single-strategy long/short hedge funds later this year. A selection is likely to be made this summer, and investments with new managers are expected by the end of the year. In February, the asset allocation of the $580 million public equities portion of the $900 million endowment pool was changed to allow 10% to go into a few very active, concentrated U.S., non-U.S. and global hedge funds that will complement the fund's existing $27 million investment in two multistrategy fund of funds. The endowment reduced its U.S. equity allocation to 40% from 45% and increased non-U.S. equities to 20% from 15% to fund the move, said Laura A. Vossman, director of foundation investments. Interested managers and consultants should contact general consultant Callan Associates, Ms. Vossman said. Later this year, the endowment likely will develop a "real assets" investment strategy, Ms. Vossman said. The fund already invests $90 million, or 10%, in private real estate managed by Townsend Group, but likely will add an allocation to other real asset classes. Details have not been finalized. In 2007, the fund will review its non-U.S. equity managers and likely will move to a core and satellite investment approach, using passive or enhanced index funds as the core and specialist active managers to add value, Ms. Vossman said. The fund invests about $180 million with active, broad strategy international equity managers Baillie Gifford and The Boston Co.
Orange County Employees Retirement System, Santa Ana, Calif., plans to conduct an asset allocation review, said Keith Bozarth, CEO of the $6.4 billion system. "We will not engage in a full-blown liability analysis, but rather will focus on possible adjustments to the asset allocation," Mr. Bozarth said. The last complete asset allocation review was three years ago. Officials expect to complete the review by the end of the summer, he said. Callan Associates, which was rehired this week as the fund's general consultant, will assist. The system's current target allocations are 19% domestic fixed income; 18% each in international equity and domestic equity; 10% each in TIPS, international fixed income and real estate; and 5% each in GTAA, alternative investments and emerging markets equity, according to the system's January 2006 investment report.
Montana Public Employees Retirement Board, Helena, will issue an RFP in September for a record keeper for its $263 million 457 plan, said Roxanne Minnehan, executive director. The search is being conducted to survey the market, she said; the plan's contract with current record keeper Great-West Retirement Services expires June 30, 2007. Great-West will be asked to rebid.
The Lothian Pension Fund, Edinburgh, plans to issue an RFP before the end of the year for at one manager to run £140 million ($250 million) Pacific equity portfolio that includes Japan, according to investment analyst Athole Skinner. Officials of the £2.6 billion pension plan have not determined a source of funding for the new investment. The manager will receive a five-year contract beginning Jan. 1, Mr. Skinner said.
The Co-operative Group, Manchester, England, may consider an asset-liability matching strategy for its new £4.7 billion ($8.2 billion) average career earnings scheme when it reviews the plan's investment portfolio later this year, said Russ Brady, head of communications, in an interview. The new pension plan — the Co-operative Group Pension (Average Career Earnings) Scheme — combined three plans that were closed. The plans were the £2.4 billion Co-operative Group Pension Fund, the £1.94 billion CIS Employees' Pension Scheme and the £403 million Co-operative Bank Pension Scheme. The new plan has 55% of assets in equities, 25% in bonds and about 20% mostly in real estate, with some cash, Mr. Brady said. He declined to provide further details about the asset classes and managers currently on the roster. Mercer Human Resource Consulting is advising.
Milwaukee County Deferred Compensation Plan will likely issue an RFP next year for a record keeper for its $200 million 457 plan, said Steve Cady, chairman. The county's contract with incumbent Great-West Retirement Services expires in September 2007 and plan officials would like to "test the market," said Mr. Cady. Great-West will be asked to rebid. The plan features 17 investment options.