SACRAMENTO, Calif. - Trustees of the $110 billion California Public Employees' Retirement Sysstem approved an RFP for a small-cap passive U.S. equity index manager.
The RFP is expected to be posted on the Internet around June 18. Dimensional Fund Advisors is the incumbent, running about $1.2 billion, and could rebid for the job. Semi-finalists are expected to be chosen in September and a contract awarded in January 1998.
The board also delayed the selection of an alternative investment management consultant so additional performance data can be analyzed. A final selection is expected in late June. CalPERS has $5 billion in partnership commitments for alternative investments and $631 million in direct alternative investments.
MARSHFIELD, Wis. - The $400 million defined contribution plan of Marshfield Clinic is searching for a small-cap value manager to run $10 million and a midcap to large-cap value manager to run at least $10 million.
Trustees decided to move to active management and conduct the search on recommendation of Jeffrey Slocum & Associates, said Tom Bauer, retirement plans manager. Custodian Northern Trust currently has the money in a value index fund.
The search, being performed through Slocum, is expected to be finished in the next couple of months.
Sterling Heights Retirement
STERLING HEIGHTS, Mich. -The $145 million Sterling Heights Retirement System approved a new asset allocation that could result in manager searches, said Larry Amez, president of the board of trustees.
The $145 million fund added small-cap equities as an asset class and increased real estate and international equity targets. The new mix is 40%U.S. large-cap equity, 10%U.S. small-cap equity, 10%international equity, 35%fixed-income and 5%real estate.
The fund had mix of about 60%stocks, including 4%in international stocks, and 40%bonds. The fund also has a small amount in the MIG real estate fund, but is in the process of exiting the investment. Merrill Lynch assisted with the study.
A decision on whether to start manager searches or use existing managers is expected at the board's May 27 meeting.
PHILADELPHIA - Temple University is taking a serious look at its investment policy and could reorganize management of its endowment and operating fund assets, most of which are managed internally, said Laurence Connely, assistant treasurer.
The university's investment committee handles $414 million of the $514 million in endowment and operating assets in-house. GMG/Seneca Capital manages bonds and The Common Fund handles a balanced portfolio for both funds. Mellon Capital manages bonds for the operating fund.
Mr. Connely said he expects to see more of the money move to external managers, though it is still too early to say.
Mercer Investment Consulting is conducting the investment policy study, which should be finished in early June.
PURCHASE, N.Y. - The $3.5 billion International Paper Co. pension fund hopes to decide on a consultant by June.
The new consultant will help International Paper fund executives with an asset allocation study now being conducted, according to Robert Hunkeler, director of investments.
SPRINGFIELD, Ill. - The $850 million State of Illinois Employees Deferred Compensation Plan issued RFPs for record-keeping services.
Responses are due June 4, according to a fund spokesman. The contract is expected to be awarded by September.
The 457 plan has about 34,000 active participants.
T. Rowe Price & Associates Inc., the current record keeper, is expected to rebid for the contract, required by the state every five years.
Fairfax County 457
FAIRFAX, Va. - The Fairfax County 457 plan will issue RFPs in June or July for bundled and unbundled service providers for the $100 million plan.
No timetable for responses to the county purchasing and supply division was established. County officials expect to complete the process by the end of the summer.
A fund spokeswoman declined to name the current service providers. The fund is conducting the search to determine what kind of services are available, she said.
San Jose Retirement
SAN JOSE, Calif. - The $800 million San Jose Retirement System is preparing to search for a small-cap manager to handle $50 million.
Mercer Investment Consulting probably will not be issuing RFPs but will be using its manager database to choose candidates.
The search is expected to be completed in the next couple of months, said Ed Overton, retirement administrator. Assets will come from terminated small-cap managers Apodaca-Johnston and Investment Advisers.
United Parcel Service
ATLANTA - United Parcel Service is finishing an asset liability study of its $3 billion defined benefit plan and could be making manager changes, said Mike Plourde, investments manager.
The study, being done by Rogers, Casey & Associates, will be presented to trustees at the end of the month. A decision on whether searches will be needed will be made in the next couple of months, he added.
Regina Employees and Police
REGINA, Saskatchewan - The Civic Employees Superannuation and Benefit Plan and the Police Superannuation and Benefit Plan are completing a search for a consultant, the first step toward a major asset allocation and liability study, said Gary Tramer, general manager-pensions and benefits.
The last study was done in 1990. The anticipated study, which the funds hope to complete by September, could result in investment management changes. It also could result in diverging investment approaches of the C$400 million ($288 million U.S.) civic plan and the C$150 million ($108 million U.S.) police plan, which now are invested similarly.
The plans, which don't use a consultant, hope to make a decision on the search by the end of the month.