The $38 billion Minnesota State Board of Investment, St. Paul, will issue a request for proposals early next year for investment providers to the State Deferred Compensation Plan, said Howard Bicker, executive director of the state board. The board's Deferred Compensation Review Committee will handle the search. The committee is expected to report the results of the search by June.
The Los Angeles Fire and Police Retirement System is searching for an international equity manager for $300 million to $400 million and might seek an emerging markets manager. The EAFE manager will be used to manage growth in the $9.3 billion fund's international assets and might take over an existing international equity portfolio. The manager that might be affected wasn't disclosed. Watson Wyatt is assisting. The fund's current international equity managers are Nomura Capital, Oechsle International and Clay Finlay. No decision has been made on whether to search now for an emerging markets firm or wait for the completion of an asset allocation study, expected in the middle of 1998.
The $480 million Newport News (Va.) Employees' Retirement System is searching for a small-cap equity value manager to add to its current small-cap equity growth portfolio. The size of the mandate has yet to be determined by fund officials. Interviews are slated for late January. Three finalists are expected to be chosen. Dahab Associates is assisting.
The $3.44 billion Indiana State Teachers' Retirement System, Indianapolis, approved plans to search for its first equities managers, said Robert Newland, investment officer. Requests for proposals for managers to run $100 million in each in Standard & Poor's 500 Stock Index and S&P 500 enhanced index portfolios are likely to be sent out by the end of January. But the timetable could be extended, Mr. Newland said. Callan will assist. In addition, Callan will perform a custodial audit to make sure custodian National City Bank of Indiana can handle the fund's assets. Callan also will assist the fund with identifying possible record keepers for its quasi-defined contribution plan within the defined benefit system.
The $4.6 billion Chicago Municipal Employees Annuity & Benefit Fund's board of trustees is expected April 16 to choose its new money manager lineup and decide whether searches will be needed. The board will hear a presentation from Becker, Burke Associates on changing the fund's asset allocation at its Jan. 20 meeting. The fund's current allocation is 52.9% U.S. stocks, 3.3% international stocks, 34.2% domestic bonds, 0.1% convertibles, 4.3% cash, 2.4% real estate and 2.8% venture capital.
Sony Music Entertainment, New York, is looking to add funds to its $227 million 401(k) plan. The fund now uses a lineup of Vanguard, Bankers Trust and Fidelity mutual funds. New funds might be chosen in late January.
The $162 million endowment of Willamette University, Salem, Ore., plans to increase its venture capital and alternative investment allocations to 10% from about 2% of total assets, said Brian Hardin, vice president-financial affairs. Discussions about timetables for searches and funding are slated for February.
The Cherokee Eastern Band, Cherokee, N.C., is expecting at least one manager search to come out of the asset allocation review of its $29 million endowment fund and $18 million minors fund, said Tiani Osborn, investment committee member. The search would either be for a growth equity manager or a U.S. bond manager. Consultant Kalson & Associates also is looking at international and real estate investments in the study. Officials plan to meet the end of January to discuss the results of the study and to decide if a manager search is needed. The funds' current asset allocation is 50% U.S. stocks and 50% U.S. bonds.
The Greater Kansas City (Mo.) Foundation will decide whether to search for a U.S. fixed-income manager in April, said Yvonne Kean, vice president of finance. The $450 million foundation had planned to have a new passive bond manager with a $7 million allocation on board by the end of the year, but decided to continue to monitor its current manager for now. The current manager, which Ms. Kean would not name, has had improved performance recently, she said.
Dalhousie University, Halifax, Nova Scotia, is undertaking a major asset-liability and asset allocation study for its pension and endowment funds, totaling some C$700 million (U.S.$500 million). The study could lead to a restructuring of allocations and managers of the C$210 million endowment fund, C$350 million pension fund, and C$130 million retiree fund. No timetable has been set, said M. Anne Hicks, manager-investments. The university would like to align closely the funds' use of managers and adjust asset allocations. The funds now use only some of the same managers and have different allocations. Specifics on the allocations weren't available.
The $1 billion Workers' Compensation Reinsurance Association, St. Paul, Minn., is reviewing its $500 million domestic equity portfolio. Director of Investments Jeff Fischer expects the portfolio to be repositioned by the middle of 1998. He would not comment on specific investment styles that may be added.
