California Public Employees' Retirement System, Sacramento, is developing an optional alternative retirement plan for an estimated 100,000 non-teaching school employees who work less than half time.
The program, the result of legislation passed earlier this year by the state Assembly, permits school districts to contract with CalPERS, which has $126 billion in assets, to offer the benefit.
New York City Employees Retirement System and the New York Police Pension Fund trustees set new asset allocations for the funds, said Deputy Comptroller Jon Lukomnik.
The $34 billion NYCERS' fund will allocate 55% to U.S. equities, 13% to MSCI-EAFE equities, 26% to structured domestic bonds, 4% to enhanced yield and 2% to alternative investments. The allocation was: 53% U.S. equities, 10% EAFE stocks, 32% U.S. bonds, 3% enhanced yield and 2% to alternatives.
The $14 billion police fund's new mix is 45% to U.S. equities, 19% to EAFE stocks, 4% to emerging market equities, 25% to U.S. bonds, 5% enhanced yield and 2% alternatives. The allocation had been: 53.5% U.S. equity, 12% EAFE, 3% emerging markets, 24% structured U.S. bonds, 5% enhanced yield, 1.5% alternatives and 1% real estate.
Neither fund has investments in alternatives, but NYCERS is evaluating four recommendations from Pacific Corporate Group. The police fund's new allocation will contain REITs, but the trustees haven't decided if it will be part of U.S. equities or a separate allocation.
Birmingham (Mich.) Employees' Retirement System reallocated its U.S. equity portfolio among existing managers after a search for a large-cap value manager. The $80 million fund will give Munder Capital about $18 million in the new large-cap value mandate and a $9 million core small-cap portfolio. Munder previously managed a large-cap growth portfolio for the system.
A large-cap growth portfolio run by MacKay Shields will be reduced to by $1 million to $20 million in the reallocation to Munder.
National Bureau of Economic Research Inc., Cambridge, Mass., moved $20 million from a MSCI-EAFE index portfolio, managed separately by Barclays Global, to Barclays' new BGI All Country World Index ex-US (ACWI ex-US) mutual fund. The allocation came from the group's capital fund. Sam Parker, CFO, declined to say how large the fund is.
American Jewish Joint Distribution Committee Inc., New York, is considering increasing the fixed income allocation to 70% from 60% for its $25 million pension fund, said Fran Morenberg, finance and pension manager. The allocation to equities would be lowered to 30% from 40%. Stratford Advisory Group is assisting. The fund runs its fixed income in-house. The committee's three existing equity managers will be retained.