Texas Volunteer Firefighters Pension Fund, San Antonio, will conduct searches for four equity managers during the next eight months. The $20 billion fund expects to hire a separate account manager or invest in a mutual fund for a $3.7 million large-cap growth manager by June; a $2 million international equity fund by September; $1.5 million for small- to midcap equities by December; and $1.4 million for small- to midcap growth equities by December. Wier Labatt, board member, said the searches will be conducted internally and are designed for diversification.
The California Public Employees' Retirement System, Sacramento, approved an exception to minority, women and disabled veteran contracting requirements for its U.S. equity money manager RFP.
The exception allows managers to meet the requirements after they are hired by the $110 billion fund. Firms will have eight weeks after being funded to meet the requirements. Previously, firms had to meet the requirements to be finalists in the selection process.
The RFP involves more than $6 billion in U.S. equity assets.
Montgomery County Employees' Retirement System, Rockville, Md., will review the performance of Systematic Financial Management at its June 6 board meeting. Systematic was hired last summer as interim core equity manager after Mitchell Hutchins was terminated. At the time, the $1.3 billion fund gave $50 million to Systematic - two-thirds of the $75 million run by Mitchell Hutchins. The balance was put into an S&P 500 index fund.
Although the board hasn't yet voted on the issue, Executive Director Julie Dellinger said the fund has been ``quite pleased with Systematic's performance'' and expects the board will give Systematic the rest of the $75 million.
Public School Teachers Pension & Retirement Fund of Chicago approved investing an additional $10 million with Schroder at today's board meeting. The money will be placed with Schroder's CII Fund, which is a real estate fund. The pension fund has about $20 million in Schroders C Fund. Assets will come from large-cap equity and core index fund investments, where the $7.28 billion fund is overweighted; no managers will be terminated. Mercer Investment Consulting assisted.
Separately, the board changed its investment policy and will allow active fixed-income managers to invest in Rule 144(a) securities. The securities would be subject to the same guidelines as corporate securities. Investment management, trust and custody activities helped State Street Boston Corp. show record earnings in the first quarter. According to its quarterly report released today, fiduciary compensation - including money management, custody, record keeping and trust fees - grew 22% from the same period last year, to $286 million, making it the largest component of State Street's total revenue. Total revenue grew to $531 million, up 20%. Assets under custody grew to $3.1 trillion from $2.5 trillion a year ago, and assets under management grew to $321 billion from $252 billion.
Gains in money management revenue outpaced revenue growth of most sectors of J.P. Morgan & Co., the firm's first-quarter results say. Revenue from institutional money management and private client services rose 13% to $243 million from the same period a year ago, while total revenue for the firm grew 5% to $1.8 billion. Assets under management grew to $213 billion in the first quarter, a 15% increase from the same time last year.