The more than $330 million Norfolk County Retirement System, Dedham, Mass., is searching for a new custodian and a discount brokerage to do commission recapture, said Timothy Cahill, county treasurer. RFPs went out Aug. 3; the deadline is Sept. 3. The current custodian is BankBoston, which just sold its custodial business, Mr. Cahill said. "We were going to go out anyway just to see what is out there. This makes it an even better idea," he said. H.C. Wainwright is assisting.
The $17 billion South Carolina Retirement System, Columbia, sent out about 75 RFPs for its first consultant search. Responses are due Sept. 4. Officials will be interviewing finalists in mid-to-late September and will not consider firms that also want to manage money for the fund, said Richard Eckstrom, state treasurer. Once a consultant is hired, searches for the fund's first equity managers will begin, followed by searches for a master trustee and custodian.
The State Retirement and Pension System of Maryland, Baltimore, is searching for the first convertible bond manager for its $30 billion defined benefit plan. Arthur N. Caple Jr., executive director for Maryland, said no decision has yet been made on portfolio size. Mr. Caple said the investment committee is conducting the search and a decision is expected by September.
The $2.5 billion Cincinnati Retirement System is searching for an investment consultant. Salomon Smith Barney is the incumbent. Laurie F. Hacking, pension fund manager, said it's standard for the fund to consider a new consultant every five years, and it's quite possible Salomon will be retained. A decision is expected by September. Once a consultant is hired, an asset/liability modeling study will begin.
Automatic Data Processing, Roseland, N.J., is searching for an additional S&P 500 index fund manager for its $748 million 401(k) plan. An S&P index fund from Mitchell Hutchins is among the plan's seven options. Annaliese Rush, manager of investments for ADP, said she will conduct the search and hopes to make recommendations to the board of trustees by December.
The California State Teachers' Retirement System's board of trustees approved an RFP for non-U.S. equity managers that is expected to go out in September. The Sacramento-based $88 billion fund has $18.5 billion in non-U.S. equity assets. Up to 16 managers could be selected. A standby pool will be set up to replace managers allocated non-U.S. equity assets but subsequently dropped. The final filing date for the RFP would be sometime in November, with manager interviews scheduled in January 1999.
The New York State Teachers' Retirement System, Albany, approved a search for active international equity managers to manage up to $1 billion of the fund's $77 billion. RFPs are being prepared, although there is no deadline for the search. Mercer will assist.
The $6.6 billion Los Angeles City Employees' Retirement System's board is preparing an RFP for an actively managed large-cap value equity manager for its $330 million large-cap portfolio. The board was expected to review the RFP at its Aug. 6 meeting. Loomis Sayles now manages the portfolio.
The Merced County Employees' Retirement System, Merced, Calif., will be searching for an international equity manager and real estate manager following the board's approval of a new asset mix. A shortlist from consultant Dorn, Hellieson & Cottle is expected by the board's Sept. 10 meeting. Trustees decided to allocate 7% of total assets to international equity for the first time, and raise its real estate allocation to 5% from 1%. The $256 million fund has between $600,000 and $800,000 with PaineWebber in a real estate investment program.
The Indiana State Teachers' Retirement Fund, Indianapolis, will next search for midcap equity managers, as the fund continues its move into the equity market, said Bob Newland, investment officer for the $4.2 billion fund. The search for managers to run $80 million in midcap most likely will begin in October or November, Mr. Newland said.
The City of Los Angeles Board of Deferred Compensation Administration decided to begin a new RFP process for defined contribution administrator and investment managers as part of a restructuring of its $1.1 billion plan, said Steven Montagna, the agency's management analyst. The board is expected to review the new RFPs next month and release them in September, Mr. Montagna said. William M. Mercer is the consultant. In May, the board had decided to restructure the plan and had canceled an outstanding RFP. The new RFP is expected to include requests for record keeping and discount brokerage window capabilities.