Chicago Public School Teachers' Pension and Retirement Fund issued an RFP for an emerging manager to run $25 million to $50 million in domestic core fixed income. Eligible managers must have less than $10 billion in total assets under management and be certified under Illinois statute as a minority-, women- or disabled-owned business enterprise, according to the RFP on the $9.5 billion fund's website, http://www.ctpf.org. Proposals are due May 17; the fund's board plans to make a selection June 15. Mercer is assisting. The fund is conducting the search as part of an effort to have 15% of its approximately $2 billion in fixed income managed by such emerging managers, Kevin Huber, executive director, said in a statement. Currently, 5% of the portfolio is managed by emerging managers. Funding for the new manager hasn't been determined but likely will come from an index fund, he added in the statement.
New Mexico council OKs consultant RFPs
New Mexico State Investment Council, Santa Fe, approved issuing RFPs for a general investment consultant and a private equity consultant, said Charles Wollmann, public information officer. The council, which oversees $14 billion in assets, expects to have the RFPs on its website possibly within a couple of weeks. A timetable for the searches has not been determined. Incumbent general consultant NEPC's contract expires on June 30. NEPC will be invited to rebid. Former private equity consultant Aldus Equity Partners was terminated in April 2009 because of the firm's link to the pay-to-play scandal involving investments of the $129.4 billion New York State Common Retirement Fund. NEPC has been assisting with the private equity portfolio since then. The council also plans to launch an RFP for a consultant to assist with its film investment activities. An invitation-only search was begun in March, but council officials decided to open the search to all. No timetable was set.
Chicago fund sets RFI for secondary private equity fund of funds
Chicago Municipal Employees' Annuity and Benefit Fund issued an RFI for a secondary private equity fund of funds to run an unannounced amount, confirmed Jim Mohler, chief investment officer of the $5.1 billion fund. The fund increased its target private equity allocation to 10% from 3% in the third quarter of 2008, “so we're working to get closer to that 10%,” Mr. Mohler said. The RFI, available on the fund's website, http://www.meabf.org, notes that once the search is completed and all legal documents are executed, the fund will disclose the size of the award, the annual fee structure summary and the key decision factors in the retirement board's decision. Neither a deadline for submitting RFIs nor a timeline for selection were specified. Requests should be directed to Marquette Associates, the fund's investment consultant. The fund's asset allocation as of Dec. 31 was 34% domestic equities, 24% fixed income, 22% international equities, 10% hedged equities, 4% real estate and 3% each for private equity and short-term investments. The fund's target allocation is 25% each for domestic equities and fixed income, 20% international equities and 10% each for hedged equities, real estate and private equity.
North Carolina reviewing asset allocation
North Carolina Retirement Systems, Raleigh, is undertaking an asset allocation study, confirmed spokeswoman Heather Franco. The systems' investment division staff and consultant Ennis Knupp are conducting the study of the $68 billion fund after a fiduciary study by the consultant earlier this month recommended more than 100 changes in fund policies and practices. Among the recommendations were increasing allocations to private equity and passive equity, from 3.5% and 12%, respectively, and a review of the fund's 1% hedge fund target. “We are currently targeting the end of the second quarter for completion of the study,” Ms. Franco wrote in an e-mail response to questions.
City of London moving on asset allocation study
City of London Corp. will conduct an asset allocation study of its £1.4 billion ($2.1 billion) investment portfolio. The study will be performed by Hewitt Associates, which was hired as investment consultant, said Paul Mathews, corporate treasurer. In the past, the city, which oversees investments for the £575 million pension fund, the £425 million City's Cash endowment fund, and the £400 million Bridge House Estates foundation, had not implemented a strategic asset allocation. That's because about one-third of assets are run by discretionary multiasset managers, which make their own allocation decisions. Hewitt replaced John Woods & Associates; the search began in November.