AP Fonden 1, Stockholm, issued RFPs for at least one manager each to run a global listed real estate portfolio and a North American REITs strategy, according to an announcement on the 201.8 billion Swedish krona ($24.7 billion) fund's website. The accounts will total a combined $200 million to $300 million. The mandates are components of a broader international real estate strategy that AP1 is about to initiate, according to the announcement. AP1's strategy is to initially fund external global property securities managers and, at a later date, shift at least a portion of the assets into a North American REITs strategy. Fund officials are looking to invest in 100% net long strategies, according to the announcement. However, shorting to some extent, such as 130/30 and similar strategies may be considered. Proposals are due Jan. 26. Neither spokeswoman Nadine Viel Lamare nor Rikard Kjorling, head of external management, could be reached immediately. Further information can be obtained by clicking here.
AP1 seeking real estate managers
Louisiana Teachers' Retirement System, Baton Rouge, may conduct a search for at least one active domestic midcap growth equity manager in February, said Bob Leggett, CIO of the $11.3 billion fund. The current manager is Columbus Circle Investors, whose contract expires at the end of June. Columbus Circle was invited to rebid, Mr. Leggett said. Columbus Circle managed $165 million for the system as of Oct. 31. Hammond Associates is the consultant.
Hawaii Employees' Retirement System, Honolulu, will undergo a comprehensive asset-liability study, said CIO Rod June. The $8.5 billion fund's general investment consultant, Pension Consulting Alliance, recommended the study. PCA will begin work on the study in the first quarter. Mr. June said he wasn't sure when it will be completed. As of Sept. 30, the system's allocation was domestic equity, 39.5%; domestic fixed income, 20.3%; international equity, 15.3%; international fixed income, 11.2%; equity real estate, 8.9%; private equity, 3.3%; and timber, 1.5%.
Ilmarinen Mutual Pension Insurance Co., Helsinki, Finland, a multiemployer pension fund with €23.7 billion ($31.6 bullion) in assets under management, will increase its alternatives allocations over the next several years, according to Timo Ritakallio, the group's deputy CEO and head of investments. The fund's real estate portfolio will increase to 12% of total assets, from 9%, and a predominantly domestic real estate strategy will be restructured to include global real estate within the next two to three years. About two-thirds will be invested in direct real estate in Finland, and one-third will be invested in indirect real estate abroad, Mr. Ritakallio said in a telephone interview. Private equity will expand to about 4%, from the current 2%, over the next three to five years. Funding is likely to come from reducing the fund's 40% equity allocation, Mr. Ritakallio said. The fund will be searching for managers, but information on when RFPs might be issued was not available.
Kentucky Teachers' Retirement System, Frankfort, will conduct an immediate asset allocation study of the $15.6 billion system as part of recommendations made by Gov. Steve Beshear's public pension working group. The teachers system voted to conduct the study as well as adopt six other investment reforms recommended by the group, according to Jonathan Miller, finance and administration cabinet secretary and chair of the working group. Among them: adding four investment experts to the system's board; requiring all board members to receive continuing education on current investment practices; and reviewing administrative regulations and eliminating those that impair the pension systems' ability to implement efficient investment portfolios, a release from Mr. Beshear's office said. The working group also made recommendations to the $17 billion Kentucky Retirement Systems, Frankfort. KRS board members have said they have already implemented several of the working group's recommendations and are studying the rest. Mr. Miller said KRS board members already agreed to do an asset allocation study and will be conducting one soon, and agreed to the continuing education recommendation. The KRS board also is studying the recommendation about having individuals with investment experience on the board, Mr. Miller said. A report conducted by Hammond Associates for the working group found that the systems were underperforming the average of their peer group by more than $5 billion for the 10 years ended June 30.