The $68.7 billion New York State Teachers' Retirement System, Albany, will issue an RFP for its first active emerging markets equity managers, confirmed Candice Ronesi, fund spokeswoman. The trustees recently modified the system's asset allocation, bringing the target allocation to emerging markets equity to 1% from zero. International equity was reduced by one percentage point, as a result. Mercer will assist on the search.
The $8.9 billion State Universities Retirement System of Illinois, Champaign, approved a search for an international equity small-cap to midcap manager to run $150 million, said John Krimmel, associate investment officer. The system wants a manager with a bottom-up style and emerging markets capabilities. Ennis Knupp is assisting. Funding will come from a U.S. equities index fund managed by Barclays Global. The system also is considering changing a roughly $175 million international equity portfolio managed by Brinson Partners to a fully active mandate from a split between active and passive, he said.
The $3.8 billion Orange County Employees' Retirement System, Santa Ana, Calif., was expected to send out RFPs by last week for a master custodian and securities lender. The fund is seeking a custodian with global custody capability and state-of-the-art communication and analytical technology. The fund could make a choice as early as July. RFP-completed questionnaires are expected to be due back later this month. An RFP for securities lending will go out because fund officials are considering that service separately. Bankers Trust, the current custodian and securities lender, is expected to compete for both assignments. Callan Associates will assist.
The $4 billion Indiana State Teachers' Retirement System, Indianapolis, increased the size of planned searches for S&P 500 index and enhanced S&P 500 index fund managers. Robert Newland, investment officer, said the fund received state administrative approval to hire managers to run $385 million in straight S&P 500 indexing and $135 million in enhanced S&P 500 indexing. The searches had been expected to be for about $100 million each. Mr. Newland said the fund is encouraging minority- and women-owned firms to apply for the assignments.
The Essex County Retirement Board, Salem, Mass., is adding venture capital as a new asset class, and conducting a search for a manager to invest $4 million, said Rafik Ghazarian, the Segal Advisors financial analyst who is assisting the $147 million fund. The deadline for RFPs is Feb. 27. The retirement board will finance the new manager by cutting back its allocation to existing managers. The fund has 64% of its assets in equities, the remainder in fixed income.
The Contra Costa County Employees Retirement System will begin to look in May for an active small-cap growth stock manager for about $55 million it has parked in a Russell 2000 index fund, managed by Bankers Trust. The money was moved last fall from an active, domestic, small-cap growth equity portfolio managed by Chancellor LGT, said Chuck Barron, assistant retirement officer for the $2.4 billion system.
The Cherokee Eastern Band, Cherokee, N.C., will consider increasing the equity allocation of its $17 million minors fund and $30 million endowment fund, said investment committee member Tiani Osborn. The investment committee will meet in late February or early March and discuss allocations of 10% of total assets to small-cap equity and/or international equity. The funds now have an allocation of 50% core U.S. equity, 50% U.S. bonds. Kalson & Associates is assisting.
The $300 million Plymouth (Mass.) County Retirement System is considering a search for a domestic bond manager this spring, said John McLellan, board chairman. The manager selected will run $200 million now handled in-house. The fund recently hired Dahab Associates as a consultant, which might assist in the search.
The $80 million Manchester (Conn.) Retirement Allowance Fund is searching for a consultant because The Hannah Group's contract runs out July 1. RFPs are due by March 31. Hannah Group will be allowed to rebid.
Southern California Edison completed an asset liability study of its $2.3 billion defined benefit plan. Dave Ertel, manager of investments would not speculate what changes, if any, might be made to the plan's investments. Approval of the study by the investment committee is expected in the next couple months. Frank Russell is assisting.
Arizona Public Service Co., Phoenix, is beginning an asset allocation study for its $700 million pension fund, Jerry White, trust investment administrator. The company hired Towers Perrin to assist with the study, the scope of which is still being determined.
The $20 million City of Marquette (Mich.) Fire & Police Retirement System expects to complete a current asset allocation study by the end of the year. The plan now invests 50% in U.S. stocks and 50% in U.S. bonds. Asset Strategies will assist. Donna Kohut, finance director, said it is too early to say what changes will be made.
