State of Illinois Employees’ Deferred Compensation Plan, Chicago, plans to issue an RFP for an active domestic large-cap core equity manager, said William R. Atwood, executive director of the $11.2 billion Illinois State Board of Investment, fiduciary to the $3 billion participant-directed plan. The board placed Legg Mason Value Trust, which manages $125 million in active domestic large-cap value equities, on watch for performance. The board wants to see if there’s a better alternative to Legg Mason, he said. Legg Mason can rebid, Mr. Atwood said. Mary Athridge, Legg Mason spokeswoman, couldn’t be reached for comment. The RFP is being developed and could be issued later this month or in October. It will be available from Iron Capital Advisors, the plan’s consultant.
Changes ahead: Illinois DC to seek domestic large-cap manager
California Public Employees’ Retirement System, Sacramento, approved a search for a pool of general consultants and a specialty private equity consultant. The $223 billion system’s general consultants would provide specific services for the system that could include investment analysis and research, strategic analysis and organizational and structural analysis among other tasks. Staff will come back to the board with a list of specific tasks at the Oct. 20 investment committee meeting, after which an RFP can be issued. Firms currently in the general consulting pool are Pension Consulting Alliance, Callan Associates, Mercer, R.V. Kuhns and Strategic Investment Solutions; their contracts expire June 30, 2009. All can rebid, said CalPERS spokesman Clark McKinley. The search does not affect general consultant Wilshire Associates. The private equity consultant would offer advice on the system’s $25 billion private equity portfolio.
University of California Board of Regents on Sept. 18 adopted a new investment strategy for the university’s $41.1 billion Retirement Plan and $6.2 billion General Endowment Pool. The board approved allowing the retirement plan to increase allocation of long-term private equity to 6% of total assets and real estate to 7%. Both are now at 5%. The committee also plans to increase absolute-return strategies to 3.5% from 2%. The General Endowment Pool would increase its private equity allocation to 9% from 7.5%, and the long-term absolute-return strategy would increase to 23.5% from 20%. The asset allocation policy is expected to take effect Oct. 1.
Ohio State Teachers Retirement System, Columbus, will conduct an asset allocation study of the $70 billion system beginning in November, spokeswoman Laura Eckler confirmed. The system wants to take a “big-picture” look at its allocation levels in international stocks, real estate, fixed income and alternatives, and whether they should be adjusted. The system’s current asset allocation is 39.6% U.S. equities, 25.4% international equities, 19% fixed income, 8% real estate, 4.7% liquidity reserves and 3.3% alternative investments. The study is expected to be completed by March, Ms. Eckler said. Russell Investments, the system’s investment consultant, will assist. The system’s last asset allocation study was in 2005.
