Leicestershire County Council Pension Fund, Leicester, England, issued an RFI for at least one manager to run a £300 million ($585 million) real-return portfolio, confirmed Colin Pratt, investment manager. The £2.17 billion plan will fund the move as part of an overall restructuring that will eliminate its bond portfolio, which accounts for 15% of total assets and is split almost evenly between UBS Global Asset Management and Morley Fund Management; they will not be terminated immediately. A separate reallocation will result in equities being reduced to 65% from 70%, with the plan moving the five percentage points to real estate, bringing that allocation to 15% from 10%. The remaining 5% will stay in cash and other alternatives. However, because market conditions in both the equity and corporate bond markets have not been favorable, fund officials are delaying their exit from bonds and equities until prices stabilize, Mr. Pratt said. Much will depend on what happens in the market, he added. We wanted to set the wheels in motion; however, it may be that the managers may have to wait a little for the funding. Proposals are due June 23. Further information can be obtained from consultant Hymans Robertson.
Changes Ahead:Leicestershire County seeks manager for real return
Vermont Pension Investment Committee, Montpelier, is asking for proposals for its economically targeted investments program, according to a request from Vermont state Treasurer Jeb Spaulding. The committee oversees a combined $3.2 billion for the Vermont State Retirement System, the Vermont State Teachers Retirement System and the Vermont Municipal Employees Retirement System. The investments must provide financing not currently available otherwise; bring specific quantitative or qualitative collateral economic benefits to Vermont; and provide a rate of return commensurate with risk. Economic or social benefits will not justify a lower return on any VPIC investment, according to the RFP. The proposals must be submitted to contract administrator Donna Holden by 2 p.m. EDT June 25. No other information was available by deadline.
Illinois Teachers Retirement System, Springfield, is accepting RFIs for private equity, real estate and absolute return (hedge fund) emerging managers. The board of the $38.7 billion system added the asset classes to its emerging manager program May 22. The systems allocation to emerging manager investments is $500 million, of which $120 million had been committed or invested as of April 30. CIO Stan Rupnik said manager research, due diligence and selection will be handled primarily by existing TRS staff members, assisted by general consultant R.V. Kuhns, private equity consultant PCG and real estate consultant Callan Associates. Emerging alternatives managers are invited to submit RFIs at http://trs.illinois.gov; manager selection is opportunistic, and searches are not conducted.
Cardiff (Wales) & Vale of Glamorgan Pension Fund issued an RFP for at least one active currency manager to run a total of up to £40 million ($78 million), said Richard Bettley, pension fund manager. Its the £899 million pension funds first investment in active currency. Funding will likely come from cash, Mr. Bettley added. Fund officials plan to hire a manager by the end of the year. Further information can be obtained from consultant bfinance at http://www.bfinance.co.uk.