Wyoming Retirement System, Cheyenne, is searching for multiple managers to run up to $560 million combined in a global tactical asset allocation strategy and a global macro hedge fund strategy, confirmed Trent May, chief investment officer. Both are first-time investments for the $5.6 billion system. Mr. May said in a telephone interview that the system plans to hire two or three managers to run a traditional GTAA and risk-parity mandate, which will account for about 70% of the allocation. The system also plans to hire three to six managers for a global macro hedge fund mandate, which will make up the remaining 30% of the $560 million. He said the number of managers hired for both investments is dependent on RFP responses. The two investments will make up about 10% of the entire portfolio. “We are trying to get a better risk-adjusted return stream than our traditional long-only equity and fixed-income managers can provide,” he said. Proposals are due Sept. 17. Mr. May said system officials aim to make a decision by Jan. 1. The RFP is available upon request through the system's website at http://retirement.state.wy. us/investments/invrfp.asp. Interested parties also can call Lori Galles, State of Wyoming purchasing agent, at 307-777-6797 for further information.
Norfolk County Council Pension Fund, Norwich, England, is searching for an active global equity manager to run £125 million ($195 million), said Alexander Younger, pension fund accountant. The global mandate is new and is being implemented because it offers broader investment opportunities, Mr. Younger said. Funding will come from reducing a £300 million passive U.K. equity portfolio; Mr. Younger would not name the manager. The £2 billion fund is cutting its U.K. equity exposure in an ongoing effort to decrease its home-country bias across all asset classes, Mr. Younger said. Proposals are due Sept. 17. A selection is expected in February. Further questions may be sent to Mr. Younger via e-mail at [email protected]
City of Edinburgh Council is searching for a global custody and securities lending provider for two pension funds with combined assets of £3.2 billion ($5 billion), confirmed Esmond Hamilton, financial controller for pension fund operations. Citibank currently performs both services for the £3 billion Lothian Pension Fund and the £200 million Lothian Buses Pension Fund. Its five-year contract with the council expires Dec. 31; the firm can rebid, Mr. Hamilton said. Proposals are due Sept. 24. A selection is expected in November. Further information is available by contacting procurement officer Paul Bell at [email protected]
Los Angeles County Employees Retirement Association, Pasadena, Calif., will increase real estate investments to 9.1% of total assets from 8.7%, and add real estate debt investments, said Lisa Mazzocco, chief investment officer of the $33.3 billion association. The changes are part of the real estate investment plan for 2010-2011 approved by the board Aug. 11. The investments are within the association's current policy range for real estate — 7% to 15% — and below its 10% allocation to the asset class. Separately, the board approved a strategic plan for real estate that includes a new suballocation to private debt of up to 20% of the $2.9 billion real estate portfolio. The board could decide whether the new plans will result in searches as early as its September board of investments meeting, Ms. Mazzocco said.
Florida Prepaid College Board, Tallahassee, plans to search for active international developed markets and midcap core equity managers if the Florida state cabinet approves a new equity allocation at its Aug. 26 meeting, said Thomas J. Wallace, executive director. The $8.1 billion 529 plan would allocate about $100 million to international developed and about $50 million to midcap core and hire one manager for each. Both are new asset classes for the fund. The board is scheduled to meet Sept. 8 to decide on the search process, if the new equity allocation, approved already by the board, is ratified by the cabinet, consisting of Charlie Crist, governor; Bill McCollum, state attorney general; and Alex Sink, state CFO. The board plans to issue invitations to negotiate, requesting proposals from prospective investment managers, as early as October, Mr. Wallace said. The ITN will be available from the board and Callan Associates, its investment consultant, which recommended the equity allocation change and would assist in the search, Mr. Wallace said. Funding would come from reducing by about one-third each Deutsche Asset Management's current $142.5 million in active large-cap growth equities, Quantitative Management Associates' $153.6 million in active large-cap value equities and Northern Trust's $149.5 million in an S&P 500 index fund. Fiduciary Management's $56.5 million in active small-cap core, would not be affected by the changes. Also, the plan's $7.6 billion in fixed income would not change.
