SEARCHES & HIRINGS
Pepperdine University, Malibu, Calif., is searching for alternative investment managers for its $215 million endowment fund, said Clariza Mullins, associate treasurer. The endowment is looking for managers for absolute return strategies, private equities and inflation hedge strategies. Ms. Mullins said it may take a year to find suitable managers.
The search is a result of a reallocation raising alternative investments to 30% from 20% of the total fund and reducing domestic equities to 30% from 40%. Its five U.S. equity managers were retained, but their allocations were reduced.
The endowment hired Analytic TSA Global to manage temporarily the $20 million. The endowment equitized the cash, employing Analytic TSA's global TAA strategy.
Cambridge Associates is assisting.
Denver Public School Employees' Pension & Benefit Association hired Callan Associates to conduct an asset allocation study. The review of the $2 billion fund is expected to be finished by the end of the year. Approval of a new asset mix is expected early in 1998, said Darrell Allen, investment officer.
The current mix is 30% U.S. equity, 30% corporate bonds, 15% mortgages, 10% international stocks, 10% real estate equity and 5% private equity.
California Public Employees' Retirement System, Sacramento, identified six finalists in a search for managers for a $807 million industrial property portfolio: RREEF Funds; LaSalle Advisors; ERE Yarmouth; AEW Capital; Prudential Real Estate; and Westmark. A maximum of two managers will be chosen, probably late this month.
Officials also have sent out about 200 RFPs in their search for firms to manage the fund's $1.4 billion office property portfolio.
The final date for responses is Dec. 3. Finalist recommendations are expected in mid-January. No date has been set for selection.
San Bernardino County Employees' Retirement System, San Bernardino, Calif., selected American Realty, Allegis Realty, PMRealty and ERE Yarmouth as finalists for a $62 million allocation to core realty. One is likely to be chosen Nov. 10. Townsend Group is assisting.
Funding will come from equities.
Ann Arbor (Mich.) City Employees' Retirement System, with $350 million, named five finalists to be interviewed Oct. 28 in its core-plus bond manager search. Finalists are: Alliance Capital; Bradford & Marzec; Miller Anderson & Sherrerd; First Chicago NBD; and Reams Asset Management. The portfolio will be about $40 million. Callan is assisting.
Washington State Investment Board, Olympia, committed up to $75 million to the OCM Opportunities Fund II, a distressed securities fund offered by Oaktree Capital. Funding will come from cash, and brings the $40 billion fund's allocation to private equity to 7.9% of total assets.
The board's goal is to have private equity reach 15% of total assets. Brinson assisted.
Alberta Teachers' Retirement Fund Board, Edmonton, Alberta, hired two non-North American stock managers for its C$1.5 billion (or US$1.08 billion) pension fund, said Kenneth F. Bancroft, director investments. GE Investments will be assigned C$100 million for a core EAFE portfolio and Pyrford International, C$50 million for an EAFE portfolio that will make country allocations.
Funding came largely from Baring International and Fleming Canada Partners, which ran similar mandates and were dropped.
Brockhouse & Cooper assisted.
