NEW YORK - Officials at the $160 million ASARCO Inc. defined benefit plan are considering the addition of international equities to the asset mix, said David Morton, investment analyst.
The fund is conducting an asset allocation study, with assistance from Meketa Investment Group, that should be completed during the first quarter.
Manager searches would follow in April.
Burroughs Wellcome Fund
DURHAM, N.C. - The $462 million Burroughs Wellcome Fund might start searching for an additional international equity manager in the new year, said Scott Schoedler, the foundation's vice president of finance.
The search, to be conducted in-house, might begin in late February and would be completed by April, he said.
An in-house asset allocation study completed last month suggested the fund decrease its emphasis in U.S. large-capitalization equity and add another international equity manager.
The new allocation moved 7%of total assets from large-cap equity to international equity.
It has not been determined how much the new manager would receive. No managers will be terminated, Mr. Schoedler said.
The new asset mix is 40%large-cap U.S. equity, 13%small-cap U.S. equity, 23%international equity, 21%domestic bonds and 3%cash.
CalTech
PASADENA, Calif. - The California Institute of Technology, Pasadena, is conducting a full in-house review of the operations and investments of its $1.3 billion in assets - including the $850 million endowment, said Philip Halpern, new treasurer and chief investment officer.
Mr. Halpern said he did not know when the review would be completed.
Mr. Halpern and staff are undertaking what he called a "full review" that is not targeted around any particular themes or goals. Mr. Halpern said he wants "to work with the investment committee. I need a better assessment of the committee's wishes, and (I want to) try to address those, given my own predilections."
Kansas Public Employees
TOPEKA, Kan. - The $7 billion Kansas Public Employees' Retirement System next year is likely to begin shifting more than $500 million into real estate and alternative investments.
Robert Woodard, chief investment officer, said staff will present a plan to trustees - probably next month - to put about 5%of assets to work in real estate. If trustees approve, the fund would begin investing in real estate, through commingled funds, public or private real estate investment trusts, or as a co-investor, early in 1997, Mr. Woodard said.
The fund is five percentage points below its target allocation of 10%in real estate, he said.
Likewise, the fund has a target of 5%for alternatives, but only has about 1%of assets invested, Mr. Woodard said. Once a new real estate program begins, a plan will be developed for alternatives.
Los Angeles County
PASADENA, Calif. - Trustees of the $20 billion Los Angeles County Employees Retirement Association approved issuance of a request for proposals for high-yield bond managers.
The RFP will be available upon request, said Juan Almaguer, fund investment officer for fixed income.
Responses are due Jan. 31. Finalists are expected to be named by the end of March. Two managers will be hired for $250 million each.
Candidates must have at least $500 million in high-yield assets, at least half in separate accounts, and returns for the last three and five years must be above the CS First Boston High Yield Index.
Later, a third manager might be hired, or the two managers could have their assets increased by a total of $300 million.
Russell is assisting.
Indiana State Teachers
INDIANAPOLIS - Board members of the Indiana State Teachers' Retirement System decided to issue a request for proposals for a consultant to help with a move into equities, said Robert Newland, investment officer for the $3.4 billion system.
The staff will work to get the RFPs out as soon as possible, with a hiring expected within three months, Mr. Newland said. The hiring will be followed by an asset-liability study, an asset allocation review and manager hirings.
A ban on public pension fund investments in equities was repealed by Indiana voters last month.
Wisconsin Power & Light
MADISON, Wis. - Wisconsin Power & Light is considering consolidating money managers for its $220 million pension fund, said Robert A. Rusch, assistant treasurer. The fund has 14 managers.
"Saving on fees is a strong possibility" if the fund cuts managers, Mr. Rusch said. "With more money allocated to a manager we'd be able to take advantage of low fee schedules."
"Administratively it's quite cumbersome (to have so many managers)," he added. "We'd like to pare it down."
Yanni-Bilkey Investment Consulting is assisting in the study. Mr. Rusch expects a decision in the first quarter of 1997.
Stanislaus County
MODESTO, Calif. - The $614 million Stanislaus County Retirement Association is starting a search for its first international equity manager, said Robert Harmon, retirement manager.
Trustees decided to add a $20 million international equity mandate, upon the recommendation of consultant SEI Capital Resources. No RFP has been issued yet; it will be handled by SEI, said Mr. Harmon.
The retirement fund also plans a small-cap manager search within the next six months, after the international equity search is complete. Dodge & Cox now is the fund's sole manager.
Anne Arundel Retirement
ANNAPOLIS, Md. - The $550 million Anne Arundel Retirement System is conducting an asset allocation study that should be finished by year end.
The booming domestic stock market prompted the fund to conduct the review, which will look at adding managers, said Al Warfield, assistant financial officer.
If the fund does hire managers, it would be the first time in two years that the manager lineup has changed.
Mercer is assisting.
CNF Transportation
PALO ALTO, Calif. - CNF Transportation and its CF Motorfreight spinoff company will be splitting Consolidated Freightways' $470 million defined benefit plan roughly in half, according to Guy Kraines, CNF Transportation's treasurer.
An asset allocation study is expected in the first half of 1997, due to a change in demographics of the two plans. Until the plans are split, each money manager will keep a separate portfolio for each plan, he said.
The study should be completed by the middle of next year.
Carpenters of St. Louis
ST. LOUIS - The $670 million Carpenters Pension Trust of St. Louis might search for a growth equity manager to replace Mark Twain Bank, said John Stewart, controller.
Mercantile Bank is acquiring Mark Twain, which runs a $55 million large-cap growth portfolio for the fund.
Mr. Stewart said the fund is concerned Mercantile might absorb the portfolio management into the value style and team approach it has, which isn't what the fund wants, he said.
Mercantile and Mark Twain officials didn't return calls for comment.
Mr. Stewart expects the fund to decide in January whether to move ahead with a search. Fiduciary Consultants is assisting the fund.
Hanson Industries
ISELIN, N.J. - Hanson Industries has split its $2 billion defined benefit plan into three plans following the breakup of the company.
Changes in investment management are expected early next year, said Bill Lavoy, director of pension management. Hanson Industries' former plan has been divided into one each for Hanson North America, Millenium Holdings and Peabody Holdings. Peabody hired Hewitt as its consultant; the other two plans kept Evaluation Associates, Hanson's consultant.
Mr. Lavoy wouldn't specify the how much in assets each plan will have. He said changes in money managers will not need to be made right away.
