Illinois State Board of Investment, Chicago, issued RFPs to create a list of transition managers for its $10.4 billion defined benefit plan and for two equity managers to provide investment options for the $2.7 billion Illinois State Employees' Deferred Compensation Plan, Springfield, which the board oversees. The board seeks to prequalify managers for its transition management pool to facilitate transitions as needed, according to the RFP. In the 457 plan's search, one manager will run a domestic large-cap core option, while the other would manage an international small-cap option, according to separate RFPs. The board wants to diversify the plan's existing equity lineup. The plan now offers 15 investment options, managed by Vanguard, T. Rowe Price, Fidelity, Legg Mason Global, LSV, Wellington, Columbia Management, Ariel, Janus, Invesco and Northern Trust. T. Rowe Price is the plan's record keeper. All three RFPs are available at http://www.isbi.illinois.gov; proposals are due Feb. 19. The board expects to make a decision March 19. Marquette Associates, ISBI's investment consultant, is assisting.
Illilnois State Board sets transition manager RFP
San Diego City Employees' Retirement System issued an RFP for a general investment consultant. Incumbent Callan Associates' three-year contract expires in May, said Liza Crisafi, chief investment officer at the $4.3 billion system. Callan can rebid. The RFP is available on the system's website, http://www.sdcers.org. Proposals are due at 5 p.m. PST Feb. 19. The board is expected to make a selection at its April 16 meeting. Separately, the system plans to conduct an asset-liability study in late spring once a new consultant is hired. Callan had recommended at the board's Jan. 22 meeting a 6% allocation to global fixed income, eliminating the separate $160 million non-U.S. fixed-income mandate, but the board postponed the matter while the next consultant conducts the study. Also, the system's board approved the assignment of Metropolitan West Asset Management's $100 million domestic core-plus fixed-income portfolio to TCW Group, which acquired MetWest in December. The board also endorsed the Institutional Limited Partners Association's Private Equity Principles, which suggest best practices in private equity investor/manager relations.
Fort Lauderdale (Fla.) General Employees' Retirement System is searching for a manager to run a total of $7 million to $8 million in active domestic small-cap growth and active domestic smidcap growth equities, confirmed David Desmond, pension administrator for the $300 million fund. Mr. Desmond declined to comment on the funding source. He said a selection date had not been set. Dahab Associates is assisting. The RFP can be found at http://www.dahab.com/searches.html. Proposals must be sent to Steven Roth, Director of Manager Research, Dahab Associates Inc., 423 S. Country Road, Bay Shore, NY 11706. Proposals are due by 5 p.m. EST March 3.
Hawaii Employees' Retirement System, Honolulu, plans to search for covered calls and TIPS managers under a new asset allocation, said Rod June, chief investment officer of the $10.2 billion fund. Treasury inflation-protected securities are included in a new 5% allocation to real-return strategies, and covered calls will also be 5% of the system's total assets, Mr. June said in a telephone interview. “The global TIPS search will probably start in late spring or early summer 2010,” Mr. June said. “The covered calls (search) will probably be concurrent, but it's hard to say.” The other new target allocations are 30% U.S. equities, down from 41%; 26% non-U.S. equities, up from 17%; 20% global fixed income, down from 28%; and 7% each real estate and private equity, changed from 9% and 3.5%, respectively. Timber, which had been 1.5% of assets, was moved into the real-return category. The changes resulted from an asset-allocation study conducted by EFI Actuaries and the system's general consultant, Pension Consulting Alliance. The study began last spring; a study is conducted every five years. Mr. June also said the remainder of the real-return allocation could go into infrastructure, commodities or other real-return investments. He said the system is conducting a review of its private equity portfolio, a process that began in early 2009 and is expected to be completed by the end of the year. The system also plans to conduct a review of its non-U.S. equities portfolio this spring, but it's not know if manager changes would result.
Illinois Municipal Retirement Fund, Oak Brook, plans to search later this year for an active international small-cap equity manager to run $230 million and an active U.S. microcap equity manager to run $170 million, according to Linda Horrell, communications manager for the $21.5 billion fund. A time frame for the search hasn't been set. The fund's board seeks to raise its allocations to domestic microcap and international small-cap. Funding will come from rebalancing IMRF's passive index funds, Ms. Horrell said. Callan Associates, which replaced Ennis Knupp Associates as investment consultant in December, will assist.