3% - Money Management Intelligence

Transcription

MML100410
9/30/10
5:03 PM
Page 1
Board Gets Busy
OCTOBER 4, 2010
VOL. XXXV, NO. 20
FLORIDA SBA ADVANCES ALTS INVESTMENTS,
REVAMPS FI MANAGEMENT
San Diego Mulls
Makeover
The San Diego City Employees
Retirement System was slated to vote
on new strategic allocation targets as
MML went to press.
See story, page 2
Plans Sponsor News
Pittsburgh Hopes For City Funding
3
The $133 billion Florida State Board of Administration is adding to its hedge fund lineup,
investing in timber and exploring infrastructure as it moves to fill out a 6% strategic
investment allocation it formulated in June. The fund is currently looking for global real
estate investment trust managers and is shaking up its fixed-income management as well; it
will wind down its high-yield portfolio and focus on core fixed income, potentially bringing
approximately half of its asset management in-house. The board has also narrowed the list of
candidates to replace its chief operating officer and chief financial officer.
The SBA plans to add as much as $2.5 billion of investments to its alternatives portfolio by
(continued on page 19)
Searches
CalSTRS Reins In Commodities
Mandate
Ohio BWC Eyes Women, Minority
Managers 5
NMPERA Preps Int’l Manager
Search
Sonoma Seeks Equity, Bond
Managers
4
5
8
Small Plan Focus
Columbia Police, Fire Eyes
Consultant
Alaska Railroad May Ride
With Real Estate
9
10
Marketing Strategies
Citi Builds Canadian Admin Biz
11
Treesdale Targets Student Housing 13
People
Arlington County CIO Resigns
13
Departments
Plan Sponsor Profile
Search & Hire Directory
14
15-18
COPYRIGHT NOTICE: No part of this publication may
be copied, photocopied or duplicated in any form or by
any means without Institutional Investor’s prior written
consent. Copying of this publication is in violation of the
Federal Copyright Law (17 USC 101 et seq.). V iolators
may be subject to criminal penalties as well as liability
for substantial monetary damages, including statutory
damages up to $100,000 per infringement, costs and
attorney’s fees. Copyright 2010 Institutional Investor,
Inc. All rights reserved. ISSN# 720-90190
Risk Consultant Needed
IPERS PREPS BIG REAL ASSETS MOVE
The $20.6 billion Iowa Public Employees Retirement System is moving to shave its U.S.
equities and fixed-income portfolios to fund a roughly $824 million allocation to real assets.
New investments include Treasury inflation-protected securities and, potentially, timber,
farmland, master limited partnerships, private energy partnerships, infrastructure or
commodities. The fund has also slated searches for both a real estate investment trust
manager and a risk management consultant in the coming months.
Chief Investment Officer Karl Koch said the increased real asset allocation (to 15% from
11%) will diversify the fund’s real assets beyond real estate. He noted TIPS were included
among real assets because it is also a hedge against inflation. The fund will meet on Dec. 2 to
discuss how and when to implement the move. No manager terminations are expected.
OKLAHOMA TEACHERS TARGETS MLPS
The $8.6 billion Oklahoma Teachers Retirement System is looking for
managers to run a $430 million master limited partnerships mandate.
Based on its annual asset allocation review, the fund has cut 5% from its
large-cap/all-cap equities core and high-yield bond portfolios to fund
allocations to master limited partnerships as well as real estate and private
equity. No manager terminations are expected.
Executive Secretary James Wilbanks said master limited partnerships are
James Wilbanks
attractive to the board because they will provide steady income for the fund.
Wilbanks declined to comment further, but Neil Rue, a managing director at Pension
Consulting Alliance, said master limited partnerships can give funds exposure to sectors such
as energy and commodities and generate income in the 5-10% range through dividend
Remember to check www.moneymanagementletter.com during the week for breaking news and updates.
MML100410
9/30/10
5:03 PM
Money Management Letter
Page 2
www.moneymanagementletter.com
October 4, 2010
Plan Sponsor News
San Diego Eyes Portfolio Makeover
The San Diego City Employees Retirement System was slated to vote on one of
four strategic asset allocation targets as MML went to press. The board will look
at cutting domestic equity to 26.5% from 36% and increase non-U.S. equity to
26.5% from 17%; increase private equity to 8% from 5% and introduce a 3%
allocation to infrastructure; include a 3% allocation to emerging market debt; or
cut its 5% hedge fund allocation to partially finance a 6.2% allocation to an
opportunity fund designed to take advantage of dislocations in the market as the
Public-Private Investment Program and the Term Asset-Backed Securities Loan
Facility, according to fund documents. The fund’s current target allocation is U.S.
equity at 36%, non-U.S. equity at 17%, real estate at 11%, private equity at 5%,
market-neutral hedge funds at 5%, U.S. fixed income at 22% and non-U.S. fixed
income at 4%. A spokeswoman for the system did not immediately return calls
regarding options of funding the private equity or infrastructure increases or
whether manager searches or terminations would follow.
The fund wants to generate favorable long-term returns and provide some
downside protection for its $4.4 billion portfolio, according to fund documents. It
has allocated 78% of its portfolio to return-seeking assets such as global equities,
real estate and hedge fund strategies. The remaining 22% is geared toward risk
reducing assets such as investment-grade U.S. bonds, Treasury inflation-protected
securities and hedged non-U.S. sovereign debt, according to fund documents.
Columbia Assembles Pension Task Force
The city of Columbia, Mo., is putting together a task force to review
underfunding at the city’s three pension plans at the request of Bob McDavid,
the mayor. The nine-member committee will include six citizens with
backgrounds in finance and one participant of each plan—the police, firefighters
and city employees retirement systems. All of the members have been selected
except for the one from city employees.
Steve Yoakum, executive director of The Public School and Education
Employee Retirement Systems of Missouri and chairman of the task force, said
that he hopes the first meeting will run in early October.
The market downturn of 2008 has hurt the Columbia Police and Firefighters’
Retirement Plan, which has separate police and fire boards but one investment
portfolio between them. The police plan is 62.61% funded and the firefighters’
plan is 61.07% funded as of Sep. 30, 2009, according to Lori Fleming, finance
director with the fund. The Missouri Local Government Employees Retirement
System handles the Columbia city employees retirement plan, which is about 7074% funded as of Feb. 28, 2009, according to Yoakum.
Until now, the city has made its required contributions to the plans. But the
decline in funding status will force the contributions to rise and divert scarce
funds away from other city programs. “We see the writing on the wall,” said
Fleming. “The mayor wants to see if there’s something we can do to address this.”
Yoakum said that the task force will first define the problem in terms of costs
to the pension plans and then come up with options on how to deal with it over
the next few months. The task force will then present its findings to the city
council and to the plans.
2
EDITORIAL
STEVE MURRAY
Editor
TOM LAMONT
General Editor
VERONICA BELITSKI
Executive Editor
(212) 224-3297
MARK FORTUNE
Managing Editor
(212) 224-3129
CARL WINFIELD
Reporter
(212) 224-3287
KEVIN DUGAN
Reporter
(212) 224-3279
LOUIS POPE
Data Editor IISearches
(212) 224-3211
JABEZ GRANT
Deputy Editor IISearches
(212) 224-3936
IGOR KOSSOV
Associate Reporter
(212) 224-3592
ALEXANDRA SCAGGS
Associate Reporter
(212) 224-3610
STANLEY WILSON
Washington Bureau Chief
(202) 393-0728
KIERON BLACK
Sketch Artist
PRODUCTION
DANY PEÑA
Director
DEBORAH ZAKEN
Manager
MELISSA ENSMINGER,
JAMES BAMBARA, DOUGLAS LEE
Associates
JENNY LO
Web Production & Design Director
ADVERTISING
PAT BERTUCCI
Associate Publisher
(212) 224-3890
ADRIENNE BILLS
Associate Publisher
(212) 224-3214
©Institutional Investor News 2010. Reproduction requires publisher’s prior permission.
PUBLISHING
GRAHAM CHITTY
Publisher
(44) 207 779 8798
RONDA DIMASI
Senior Marketing Manager
(212) 224-3569
LAURA PAGLIARO
Marketing Manager
(212) 224-3896
VINCENT YESENOSKY
Head of US Fulfillment
(212) 224-3057
DAVID SILVA
Senior Fulfillment Manager
(212) 224-3573
SUBSCRIPTIONS/
ELECTRONIC LICENSES
One year $2,695 (in Canada add $30
postage, others outside US add $75)
STEVE MCDERMOTT
Account Executive (212) 224-3486
GEORGE WITTMAN
Client Development Manager
(212) 224-3019
REPRINTS
DEWEY PALMIERI
Reprint & Permission Manager
(212) 224-3675
[email protected]
CORPORATE
GARY MUELLER
Chairman & CEO
ALLISON ADAMS
Group Publisher
STEVE KURTZ
Chief Operating Officer
Customer Service: PO Box 5016,
Brentwood, TN 37024-5016.
Tel: 1-800-715-9195. Fax: 1-615-377-0525
UK: 44 20 7779 8704
Hong Kong: 852 2842 6910
E-mail: [email protected]
Editorial Offices: 225 Park Avenue
South, New York, NY 10003.
Tel: (212) 224-3129
Email: [email protected]
Institutional Investor Hotline:
(212) 224-3570 and (1-800) 437-9997 or
[email protected]
Money Management Letter is a
general circulation biweekly. No
statement in this issue is to be construed
as a recommendation to buy or sell
securities or to provide investment advice.
Money Management Letter ©2010
Institutional Investor, Inc. ISSN# 720-90190
Copying prohibited without the
permission of the Publisher.
MML100410
9/30/10
5:03 PM
Page 3
October 4, 2010
Plan Sponsor News
Pittsburgh Awaits Cash Infusion
The $309 million Pittsburgh Municipal Pension Trust is
awaiting approval from the city council on a deal that could
provide the fund with a much-needed infusion of capital. The
board hopes to gain approval by the end of October to accept a
$452 million bid from a partnership composed of LAZ Parking
and JPMorgans to privatize parking garages.
Cash from the sale could save the pension plan from being
absorbed by the Pennsylvania Municipal Retirement System,
which will happen if the plan doesn’t achieve a funded ratio in
excess of 50% by Jan. 1, 2011. The plan needs at least $210
million to fill the funding gap, said Tony Pokora, assistant
director of finance. Some of the proceeds of the sale would be
used to retire bonds issued on the property, but the city would
be left with around $330 million to potentially contribute to
the plan.
The money would be invested according to the system’s
existing asset allocation, said Pokora; Mayor Luke Ravenstahl
will decide how much above the needed $210 million will go to
the pension plan. There are no allocation changes or studies
planned as a result of the potential contribution.
The partnership of LAZ Parking and JPMorgan, which will
operate the parking garages as Pittsburgh Parking Partners,
Searches
Orlando Targets New
Assets In Revamp
The City of Orlando Pension Advisory Committee, which helps
manage the city’s $727 million in pension plans, is eyeing global
assets, funds of hedge funds, real estate and ‘smid’-cap equities as
it continues with an asset allocation revamp.
According to fund documents, the boards for the city’s
General Employees’ Pension Fund, Police Pension Fund, and
Firefighters’ Pension Fund were slated to interview Crestline
Partners, Entrust Capital, GAM USA, and Grosvenor Capital
Management for a 5% fund-of- hedge-funds mandate at the end
of August. The boards are also set to get information at the end
of September regarding a search for global assets managers. At an
earlier meeting in July, FLAG Real Estate Partners and
Metropolitan Real Estate Partners were being considered for a
value-added non-core real estate brief.
NEPC Consultant Kevin Leonard, based in Cambridge,
Mass., is assisting with the searches. Leonard didn’t return calls
seeking comment.
After the global asset search is completed, the boards will
look for a ‘smid’-cap manager; the size of that mandate
entered an initial bid of $413 million September 13. Other
bidders were EQT Partners Inc, which bid $423 million, and
Carlyle Infrastructure Partners, which bid $311 million.
Nebraska Refines World Index Focus
The $14 billion Nebraska Investment Council will switch from
the broad ACWI to a narrower Investable Market Index for its
$300 million all-world allocation. Jeff States, investment
manager with the council, said that the IMI has a better
exposure to small- and mid-cap equities and provides better riskreturn characteristics. NIC will switch from BlackRock to State
Street Global Advisors to run this index. States added that SSgA
had a more competitive fee, which he declined to quantify. A
representative from BlackRock declined to comment.
Separately, the council made a $15 million private equity
commitment to the Aries Capital mezzanine fund as part of the
ongoing process to diversify the portfolio’s private equity
exposure. The funding will come from the council’s domestic
Russell 1000 index allocation.
The council targets an allocation of 30% of its defined benefit
assets in fixed income, 31.5% in domestic equity, 15% in global
equity, 13.5% in non-U.S. equity, 5% in real estate and 5% in
private equity.
couldn’t be gleaned.
The asset revamp is a result of a study completed last year by
NEPC. The funds have since invested in the JPMorgan Strategic
Property Fund (MML Daily, 4/27) and selected Thornburg
Investment Management for an international equity brief last
December.
The committee recently hired GTS Advisors to provide
transition management services and analysis of its portfolio
trading costs.
Colchester Nabs Big Real
Return Mandate
The $17 billion Texas Municipal Retirement System board has
charged Colchester Global Investors with managing an $850
million global inflation-linked bond mandate within the real
return component of the fund’s portfolio. The mandate will be
invested over the next year. The real return allocation represents
5% of the fund’s portfolio. Funds for the real return investment
will be taken from the current fixed income allocation, which is
at 35%, or some $6 billion. R.V. Kuhns and Associates
consulted on the management selection.
To receive email alerts or online access, call 800-715-9195.
3
MML100410
9/30/10
5:03 PM
Page 4
Austin City Retains Auditor
The $1.5 billion City of Austin Employee Retirement System
(COAERS) has decided to retain Padgett, Stratemann and Co.
as internal auditors through 2015. The firm has handled internal
auditing for the system since 2008, while KPMG handles the
financial audits. Donna Boykin, cfo for the fund, declined to
comment on the fee arrangement with Padget, Stratemann.
CalSTRS Limits Commodities
Investment to $250M
The board of the $134 billion California State Teachers
Retirement System (CalSTRS) has reduced greatly the scope of
its proposed commodities investment—from a reported $2.5
billion to $250 million or less. Ricardo Duran, media relations
representative, said the $250 million figure came from
discussions at a September 2 meeting of the fund’s investment
committee and CalSTRS staff. The staff had proposed the larger
figure during the summer.
The fund’s Innovation and Risk Unit decided to lower the
amount and allocate it over a three-year incubation period to see
how the investments perform, according to Duran. If they
perform well, and given a favorable market outlook, the board
might then consider three options: injecting more into
commodities, creating a separate allocation bucket, or rolling the
investments into an existing asset class. Duran said other
investors may feel commodities are “hot and get in before the
market gets saturated, but we’re a long-term investor and perform
over many, many years, decades, even.”
Penn. SERS Invests in Asian PE
The $23.7 billion Pennsylvania State Employees’ Retirement
System has invested in a South Korean private equity firm in
order to further diversify globally, said plan representative
Bob Gentzel.
The plan has committed $7 million to Asia Alternatives
Capital Partners Korea Buyout Investors as a co-investment in
Hahn & Company Korea, which will be funded from cash. The
plan also made follow-on commitments of $12.5 million each to
the OCM Opportunities funds VIII and VIIIb, $20 million to
Avenue Capital’s Special Situations VI fund, and $10 million to
JMI’s Equity VII fund.
Penn. SERS often makes follow-on commitments of $10
million to $50 million to managers in alternatives, despite over
allocation to private equity and venture capital. As of December
2009, the plan had an 18.3% actual allocation against an 18%
target, and the actual allocation has since grown. For example, it
funded an additional $20 million and $25 million to Francisco
4
October 4, 2010
Partners III LP and Weathergate Venture Capital II, respectively in
May (MML Daily, 5/3).
Virginia County Interviews PE Firms
The $1.63 billion Fairfax County (Va.) Educational
Supplemental Employees Retirement System has interviewed
two private equity managers for an investment in the secondary
market and plans to make a decision in November.
Plan representative Janet Kohler Dueweke said that the board
hasn’t decided on the size of the investment, but board members
plan to make due diligence visits to Permal Capital Management
and Lexington Partners in October. ERFC is looking to invest in
private equity for diversification purposes. Its target allocation to
the area is 5%, and the system has so far set aside around 1% of
its funds for the space since the allocation was adopted in 2009.
The interviews follow a recommendation from consultant
Doug Moseley of NEPC to invest $15 million each in the
mezzanine lending and secondary market private equity areas.
ERFC most recently invested $7.5 million each with Audax
Management Company and Newstone Capital Partners
(iisearches, 7/16).
New Mexico SIC Unloads Equities,
Hedge Funds
The $13.5 billion New Mexico State Investment Council
(NMSIC) is looking to reallocate funds from domestic equities
and hedge funds. As of June 30, the fund had approximately
$5.5 billion in domestic equities, $1.5 billion in international
equities and approximately $1.1 billion in hedge funds. It plans
to increase investments long term in fixed income to 20% from
15% and international equities to 15% from 9%.
The draw down in hedge fund investments is largely because
of poor performance—a drop of 0.2% for the quarter and 6.7%
over three years. NMSIC is looking to reduce its allocation to
hedge funds to 5% from 15%. Charles Wollman, Public
Information Officer for NMSIC, said the fund will soon
complete a search for a hedge fund manager for a completion
fund, to “fill in strategic holes” and make up for losses. Wollman
said the move away from hedge funds and equities was not a
result of the bad quarter, but part of a long-term strategy. “We’re
assessing if we’ve done enough to take volatility out of the
portfolio,” he said.
“The old investment officer really liked his equities,” said
Charles Wollman, Public Information Officer for the fund,
referring to Gary Bland. (Bland resigned last year after the
former state investment advisor, Saul Meyer, pled guilty to
securities fraud.) He added that Bland’s “old strategies to
MML100410
9/30/10
5:03 PM
Page 5
October 4, 2010
minimize volatility were no longer viable.” Steven K. Moise,
former Senior Vice President of Development for the University
of Colorado Foundation, replaced Bland in April. Robert
“Vince” Smith, who just left his job as CIO for the Kansas
Public Employees Retirement System (KPERS), will replace
Adam Levine as deputy SIO on Sept. 27.
For the quarter, U.S. equities returned -11.9%,
underperforming against the Russell 3000 Index benchmark by
0.6%, and the large-cap active equities pool returned -13.3%
against the Standard & Poor’s 500 Index benchmark of -11.4%.
Non-U.S. equities in developed markets outperformed the
MSCI EAFE benchmark by 0.4%, but still returned -13.6%.
Emerging markets equities returned -12.9%, lagging behind the
MSCI Emerging Markets bench by 4.6%. The fund had $546
million in non-U.S. developed equities and $982 million in
emerging markets.
Ohio BWC Carves Slice for Minority,
Women Managers
The board of the $20 billion Ohio Bureau of Workers
Compensation fund will set aside 1% of the Bureau’s portfolio,
or $200 million, for investment via woman- and minority-owned
money management firms. At the suggestion of its consultant,
Mercer, the Bureau will search for a manager of managers, which
will coordinate the hires. Melissa Vince, spokeswoman with the
fund, said that the board has not yet discussed the timeframe for
the search nor the asset classes it will look for. She said that these
decisions will most likely be discussed at future board meetings.
PMRS Cuts Century, Sticks
With DePrince
M&I Investment Management Corp. has won a $33 million
small-cap equity mandate that was previously handled by
Century Capital after the $1.4 billion Pennsylvania Municipal
Retirement System put the contract out for bid as required by
state law. The law, enacted in December 2009, requires all
Pennsylvania contract renewals to be subject to a public bid
process every five years. Century’s five-year contract was slated to
expire this fall, and the firm was invited to re-bid.
PMRS didn’t have a problem with Century’s service, said
plan representative Jim Allen, but the manager didn’t end up
as one of the top three managers considered. The pension
used factors such as performance, the number of stocks in the
portfolio, volatility of returns and value added in their
evaluation. Century Capital didn’t return calls for comment.
Competing with M&I as finalists were Pier Capital and
Riverbridge Partners. Riverbridge declined to comment, and
Pier didn’t return calls by press time.
The plan also renewed a five-year contract of DePrince, Race
& Zollo for a roughly $60 million large-cap value mandate.
Jacksonville Police & Fire Issues
U.S. Equity RFP
The $982 million City of Jacksonville Police & Fire Pension has
issued a request for proposals for a large-cap value equity
manager for a mandate worth $50 million as part of a larger
portfolio restructuring.
The current managers for the mandate,
AllianceBernstein and Thompson, Siegel &
Walmsley, are invited to re-bid, said John
Keane, administrator. The fund is looking
for one or two managers to manage the
mandate. Plan consultant Dan Holmes of
Summit Strategies will assist. Proposals are
John Keane
due Oct. 20.
Keane added that the restructuring has started because the
pension fund won a lawsuit against the State of Florida Division
of Retirement and can now invest in alternatives. The plan is
interested in areas such as infrastructure and hedge funds, he said.
NMPERA Readies Vote On Int’l
Manager Search
The $10.6 billion New Mexico Public Employees Retirement
Association’s investment committee has recommended
launching a new search for active small-cap international
money managers. The mandate size has not
yet been determined, but cio Joelle Mevi
said that it may be between $100 million
and $150 million. The board was expected
to vote vote on the prospective allocation at
its Sept. 30 meeting, after MML went to
press. If approved, NMPERA will likely
Joelle Mevi
draw funding from passive mandates.
The committee also recommended a search for an
international large-cap growth manager, but that search is
further in the future and the fund has not yet determined
mandate size or timeframe. The committee also
recommended that the fund consolidate its passive
international and emerging markets mandates to track the
MSCI ACWI ex-U.S. index.
The fund currently has half of its international equities under
active management. Mevi said that the fund hopes to increase the
actively managed portion to generate excess returns. Marcia
Beard with R.V. Kuhns & Associates’ Portland office—the
5
MML100410
9/30/10
5:03 PM
Page 6
fund’s consultant—suggested merging the passive mandates to
bring them in line with a composite benchmark.
The fund invests 45% of its assets in equity, 20% in fixed
income, 10% in private equity, 10% in absolute return, 5% in
GTAA, 5% in real estate and 5% in real assets.
Sacramento Cuts ECM
The $5.1 billion Sacramento County (Calif.) Employees
Retirement System dismissed London-based European Credit
Management due to organizational changes at the firm. The firm
managed roughly $49.6 million in European debt instruments
for the fund. Executive Director Richard Stensrud noted that the
departures of six members of ECM’s investment team caused
concern about the firm’s stability. The names of the employees
who left could not be determined; a spokesman for ECM did not
immediately return calls.
ECM is slated to redeem Sacramento’s investment in two
installments. Stensrud did not immediately respond to
questions regarding ECM’s termination or how the money
would be reallocated.
Chicago Board Of Ed Seeks Auditor
The Chicago Board of Education is looking for an independent
auditor to express an opinion on its annual financial audits,
review its internal controls and certify that a joint annual
financial report with the Illinois School District meets state
standards. Contract Administrator Martha Escareno said the
board is seeking auditors because the incumbent’s contract ends
in February. The firm will be invited to rebid.
Respondents will be evaluated, in part, on experience with
similar contracts and qualifications of assigned personnel and the
quality of the implementation plan. Fee proposals from
prospective firms will also factor into the board’s decision.
Responses to the RFP are due Oct. 5.
JPMorgan, Brookfield Nab San
Diego Real Estate Mandates
The $7.4 billion San Diego County Employees Retirement
Association (SDCERA) has allocated $200 million to
JPMorgan Asset Management and $75 million to
Brookfields Asset Management. Johanna Shick,
spokesperson for the fund, said the money for the
investments came from cash.
The $200 million, which represents 2.8% of the total
SDCERA portfolio, will go into JPMorgan’s Strategic Property
Fund for core real estate investment, which allows for greater
liquidity and control through monthly deposits and quarterly
6
October 4, 2010
redemptions. The management fee is approximately 89 basis
points, with 15 basis points for cash equivalents in excess of 7.5%.
The $75 million in Brookfield will go into its Americas
Infrastructure Fund, which focuses on utility, energy, renewable
power and transportation sector assets in North America—
Canada and the U.S.—and South America—primarily in Brazil
and Chile, but also Columbia and Peru on an opportunistic
basis. Management fees are 100 basis points on committed
capital and 150 on invested. The Townsend Group was the
consultant on these decisions.
MLGW Gets Back To Private Equity
The $1 billion Memphis Light, Gas & Water Division
Pension System awarded a $15 million private equity
mandate to SSM Partners, based in Memphis. John
McCullough, v.p. of finance, said that MLGW didn’t have a
private equity allocation in the past few years and took this
step to diversify the portfolio. He added that SSM has a risk
level that MLGW likes because the manager focuses on midlife expansion of mid-sized companies.
McCullough declined to talk about other candidates that bid
in the process. The funding will come from fixed income, and
some managers will see their mandates reduced, he said,
declining to specify.
The system invests 40% of its assets in equities, 38% in fixed
income, 20.5% in real estate and 1.5% in private equity.
OPERS Expands Ohio Midwest Fund
The $68 billion Ohio Public Employees
Retirement System has tapped Permal
Capital Management of Boston to manage
$100 million in private equity. The mandate
will be the system’s third commitment to the
Ohio Midwest Fund, a private equity
portfolio that can be invested only in
Rich Nuzum
companies based in the Midwest. OPERS
plans to fund the mandate from its other private equity
commitments over the course of three years, said Julie GrahamPrice, the fund spokesperson. Some managers will see their
mandates reduced. Rich Nuzum with Mercer advises the fund.
Ohio already has two $50 million mandates in the Ohio
Midwest Fund, both of which are handled by Credit Suisse—
one was launched in 2005, the other, in 2007. Together, they
have investments in 139 companies, 42 of which are based in
Ohio. The 2005 fund had a net return of -7% and the 2007
fund returned -17% as of March 31. OPERS will liquidate these
two funds over the next few years.
Price said that the system is looking to increase its
MML100410
9/30/10
5:03 PM
Page 7
October 4, 2010
commitment to the sector and hopes to achieve better returns
for the Ohio Midwest Fund with the new $100 million
commitment. The fund chose Permal because of the company’s
better expertise and fee structure with this kind of investment, as
well as the hope that it will perform better than Credit Suisse.
OPERS invests 25% of its assets in U.S. equities, 19% in nonU.S. equities and 6% in emerging markets. It allocates 9% to
core bonds, 9% to long-duration bonds and 5% in high-yield
bonds. In the alternative space, 10% goes to real estate, 10% to
private equity, 3% to hedge funds and 2% to infrastructure. The
remaining 2% is in cash and other liquid assets.
REITS Increased
Stanislaus Moves On Mezz
Debt, Infrastructure
The $1.2 billion Stanislaus County (Calif.) Employees
Retirement Association has agreed to commit $30 million to
Kohlberg, Kravis, Roberts Asset Management’s KKR Global
Infrastructure Investors fund. Retirement Administrator Tom
Watson said the fund also allocated $30 million to the KKR
Mezzanine Partners I fund and bumped its allocation to Atlantabased Invesco’s global real estate investment trust mandate to
roughly $30 million from approximately $18 million in August.
Stanislaus’ board had been considering the moves in order to
decrease its equity risk (MML Daily, 8/10). The investments will
be funded through reductions in its equity portfolio.
Western, TCW Axed
Colorado Fire Shuffles
Fixed-Income Managers
fund passed on State Street because it was looking for firm
diversification. “With State Street, we just have a huge
exposure to passive equity,” he said. BlackRock also had “a bit
more capabilities outside fixed income in the alternative
space” than BNY Mellon, Simon said, hinting that he foresees
a strategic relationship with BlackRock. He noted that the
fixed-income capabilities of both BlackRock and BNY Mellon
are very similar. BNY Mellon and State Street both declined
to comment.
Once WAMCO and TCW’s mandates are terminated, funds
are to be moved over to passive aggregate bond exposure in order
to fund the new mandates in fixed income. Simon said the two
firms were let go to “de-risk the credit exposure” of the fund.
TCW and WAMCO declined to comment.
Ohio Schools Hires For
EM Mandates
The $9.2 billion School Employees Retirement System of Ohio
authorized the hire of Genesis Investment Management and
Hexam Capital Partners for emerging markets equities
mandates. Assignment sizes are still in negotiation but will not
exceed $100 million, according to Tim Barbour, fund
spokesman, and will be funded from the system’s cash reserves.
The search was part of an effort to boost exposure in global
equities (MML Daily, 8/2.)
The fund invests 27.5% of its assets in international equity,
27.5% in domestic equity, 24% in fixed income, 10% in real
estate, 10% in private equity and 1% in cash.
Ventura Mulls Passive Management
The $2.8 billion Colorado Fire & Police Pension Association
(CFPPA) is set to terminate Western Asset Management
Company (WAMCO) and TCW from core plus and high-yield
mandates, respectively, in order to fund a $150 million passive
fixed income mandate recently won by BlackRock. The
remaining $200 million will fund an active fixed-income mandate
on which the board plans to decide within the next two months.
Regarding the open search, CFPPA CIO Scott Simon said
that the fund will “still take information, but we’ll be doing
onsite due diligence over the next month.” He declined to name
the managers already in the running. CFPPA has approximately
$600 million in fixed income, and BlackRock will be the fourth
manager overseeing the portfolio alongside Pacific Investment
Management Company (PIMCO), WAMCO and TCW, the
latter two retaining separate mandates from those just axed.
BlackRock beat out two other managers in an internally
run search—BNY Mellon and State Street. Simon said the
The $2.75 billion Ventura County (Calif.) Employees
Retirement System compared active managers Acadian Asset
Management in Boston and New York’s Artio Global Investors’
against passively managed alternatives at its Sept. 20 meeting.
Retirement Administrator Tim Thonis said the move
represented a continuing discussion of the benefits of active and
passive management. “As markets become more efficient and
information improves, there’s only so much an active manager
can do to take advantage of inefficiencies,” he said.
Thonis noted the $100 million global equity mandate run by
Acadian returned 7.3% for the year ending June 30. The MSCI
ACWI index, its benchmark, returned 10.3% for the same
period. Likewise, the $60 million international equity mandate
overseen by Artio returned 9.4% for the year ending June 30,
while its benchmark, the MSCI ACWI ex U.S. index returned
11.8% for the same period.
Acadian has been on watch for performance since February
(MML Daily, 2/2).
7
MML100410
9/30/10
5:03 PM
Page 8
Tennessee Consolidated Hires
Energy Fund
The $29.8 billion Tennessee Consolidated
Retirement Fund hired EnCap Investments
for a $30 million energy limited partnership.
This will be TCRF’s first sector-targeted
investment. Michael Brakebill, cio with the
fund, sees an opportunity for great returns
and portfolio diversification within this space.
Michael Brakebill
The funding will come from the overall
portfolio and some managers may see their mandates reduced
slightly; Brakebill did not specify who will see cuts.
The fund invests 33.6% of its assets in domestic equity,
14.4% in international equity, 33.2% in domestic bonds, 3.7%
in international bonds, 7.6% in hedge funds, 4% in real estate
and 3.5% in cash.
Missouri City Seeks Auditors
The City of Nevada, Miss., is looking for certified public
accounting firms to audit financial statements. The work will
involve statements for the fiscal year ending Dec. 31, but the city
is also open to negotiating a five-year contract with the winner.
Interested firms should send four proposal copies to Kristie
Modlin, finance manager, by Oct. 8. The city hopes to make its
selection by Oct. 20.
Modlin could not be reached by press time on the reason why
Nevada is doing this search at this time. Nevada’s annual payroll
for all its employees totals $4.9 million.
LASERS Commits to New PE
The $8 billion Louisiana State Employees Retirement
System has made $40 million private equity commitments to
Siguler Guff & Company and Energy Spectrum Capital,
respectively. Bobby Beale, LASERS cio, said the system
invested in the two managers’ previous funds and remains
very satisfied, adding that the new mandates were part of the
“normal course of business.” The mandates will be funded
from draw downs for the previous funds. The fund’s
consultant, Rhett Humphreys with Cambridge-based NEPC,
assisted with the allocation.
The board also approved investing in the new Bridgewater
Associates Pure Alpha Major Markets Fund. Any distributions
from LASERS’ existing investments in the Bridgewater Pure
Alpha fund will be reinvested into the new product.
LASERS invests 50% of its assets in equities, 20% in fixed
income, 25% in alternatives and 5% global asset allocation.
8
October 4, 2010
LACERS Approves Aon Contract
The Los Angeles City Employees Retirement System, which has
$9.9 billion under management, approved a contract with Aon
Corporation that simplifies contractual language after the
consulting firm Hewitt Associates, which bought Ennis Knupp
& Associates in August, was in turn acquired by Aon in August.
“This acquisition will constitute a change in control of Ennis
Knupp’s contract with LACERS,” said Linda Aparicio,
spokesperson for the fund. Although a change of control will
take place, the name Ennis, Knupp & Associates will remain as
the contractor of record for the fund.
Sonoma County Seeks Fixed-Income,
Equities Managers
The $1.3 billion Sonoma County Employees Retirement
Association (SCERA) will hire managers for U.S. fixedincome active core-plus and active international equities. The
mandates will be approximately $120 million in aggregate.
Funding will come from two mandates that were held by
Capital Guardian in non-US equity and global equity.
Capital Guardian, which was terminated in July, had been on
SCERA’s watch list since November 2009 after the board’s
confidence was shaken by an organizational shift, changes in
the portfolio management team, losses in institutional assets
and a lack of clarity about future leadership. State Street
Global Advisors has been transitioning the portfolios. Each
portfolio represented approximately $60 million in assets.
Hewitt Ennis Knupp consulted on the assignment.
Chicago Transit Eyes PE Hedge
Fund Manager
The Chicago Transit Authority Employees Retirement Fund is
considering hedge fund managers to run a private equity mandate.
A fund official noted that the CTA, which has approximately $1.6
billion in assets, is weighing the move to complement a $30 million
private equity fund-of-hedge-funds mandate. The official declined
to comment on when CTA would issue a request for proposals, the
amount of the mandate or how it would be financed. Executive
Director John Kallianis did not return calls for comment.
The official added that the hedge-fund-of-funds component
will serve as a core private equity investment. The direct private
equity will be a “satellite” allocation through which the CTA will
focus on strategies with different return aspects. Gray & Co., the
fund’s consultant, will advise.
The official confirmed the fund has narrowed down its choice of
fund-of-funds managers, but declined to comment on the finalists.
MML100410
9/30/10
5:03 PM
Page 9
October 4, 2010
Chicago Public Schools
Taps FOF Manager
expired. The deadline is Oct. 8, and five auditors have already
applied, among them CG. The auditing committee is expected
to make its decision in the third week of November.
The $9.1 billion Chicago Public School Teachers Pension and
Retirement Fund has selected Evanston, Ill.-based Plucios
Management to oversee a $25 million fund-of-hedge-funds
mandate. Executive Director Kevin Huber said the board chose
Plucios because it complemented existing hedge funds run by
Chicago’s Mesirow Advanced Strategies and Stamford, Conn.’s
K2 Advisors.
Lasair Capital and Rock Creek Group were also finalists
for the mandate. Spokesmen for the firms did not return calls
for comment.
Iowa Removes Mellon, WAMCO
From Watchlist
At its Sept.16 board meeting, the $20.6 billion Iowa Public
Employees Retirement System removed Mellon Capital
Management and Western Asset Management from its
watch list.
CIO Karl Koch said the board placed Mellon on watch last
year for reasons of personnel turnover in its global tactical
long/short strategy. WAMCO had been placed on watch for
underperformance in its core fixed-income portfolio. Koch added
that no further personnel changes have occurred at Mellon and
that WAMCO’s performance has improved.
Fixed-income manager BlackRock and Arlington, Va.based international equity manager Emerging Markets
Management remain on the fund’s watch list based on
turnover and performance. Both were placed on watch last
year. The values of the managers’ mandates could not be
determined by press time.
Small Plan Focus
Aurora Shuffles Allocation,
Seeks Auditor
The board of the $285.4 million City of Aurora General
Employee Retirement Plan (GERP) has agreed to allocate $15
million to the Molpus Woodlands Group Fund III and will
increase allocation to its $42 million in international equities to
16% from 14%, or $2.1 million, after trimming U.S. equities to
28% from 30%. GERP plans to add another $2.1 million to
international equities in three months. State Street and Dodge
and Cox each handle half of the international equities mandate
and will take over the new assignments.
The fund will also issue a request for proposals for a new
auditor, since the contract with Clifton Gunderson (CG) has
Watertown Seeks Equity,
Bond Managers
The $85 million Watertown (Mass.) Contributory Retirement
Board is looking for managers to oversee a $4 million mid-cap
core equity mandate, a $2 million global fixed-income mandate
and a high-yield fixed-income mandate valued at $2 million.
Director Barbara Sheehan said the fund is searching for
managers on the advice of its new consultant, Windsor, Conn.based Fiduciary Investment Advisors, which replaced New Yorkbased Segal Advisors earlier this year
She added that the fund, which has roughly 50% of its assets
in the Massachusetts PRIT fund, is looking to revamp its asset
allocation. She did not disclose how the move would be funded.
Neither FIA analyst Maura Goulart nor the spokeswoman for
Segal returned calls.
Firms interested in the mandates must have a minimum
$500 million in assets under management, a minimum of
$250 in each strategy and at least five years of performance
history. The requests for proposals, which can be obtained
from Goulart at [email protected], are due Nov. 5.
Columbia Guns & Hoses To Seek
Outside Help
The $74.8 million Columbia Police & Firefighters’
Retirement System in Missouri may issue a request for
proposals for an investment manager or consultant within the
next two to three months. Until now, the two retirement
systems, which have separate boards but share one portfolio,
managed all the funds in-house without an advisor. The talks
stem from concern over the status of the pension plans, which
are only roughly 61% funded.
Lori Fleming, finance director for the fund, said the police
and firefighters’ boards will meet jointly to discuss alternative
approaches, including hiring outside help. The discussion is still
in the early stages and no other details have been confirmed,
said Fleming.
The portfolio targets a 50% allocation to equities and 50%
to fixed income, allowing these targets to fluctuate by a
maximum of 15%. All of the fund’s equity investments are
through mutual funds. Recently, the fund’s equity investments
represented 55% of the portfolio. Government bonds,
corporate bonds and cash equivalents represented about
15% each.
9
MML100410
9/30/10
5:03 PM
Page 10
Delaware Fund May Flip
Entire Portfolio
The $20 million Sussex County (Del.) Postemployment Benefit
Plan has issued request for proposals seeking fixed-income,
domestic large-cap, small-cap and global equity investment
management services. Responses were due September 27.
The reason for both searches could not be gleaned as calls
to Susan Webb, finance director, were not returned before
press time. According to fund documents, the fixed-income
allocation will be between 30-50% and the equity 50-70%.
West Chester, Pa.-based Peirce Park Group, is assisting with
the search.
Ann Arbor Splits
Lee Munder Mandate
The $344 million City of Ann Arbor (Mich.) Retirement
System has liquidated its $19 million allocation to Boston’s
Lee Munder Capital Group’s Small-Cap Select Growth
strategy and split the money between incumbent, Loomis,
Sayles & Co. and Rhumbline Advisors’ Small-Cap Core index
fund, according to fund documents. The fund currently has
October 4, 2010
$41.2 million in small-cap equities. Loomis’ mandate will
increase to 27.5 million from $22.2 million. Rhumbline will
oversee $13.7 million
The firm closed its small-cap growth strategy in August
(MML Daily, 8/11). Executive Director Willie Powell did not
immediately return calls to address why the funds were
transferred to Loomis and Rhumbline. Spokesmen for the firms
did not return calls for comment.
Alaska Railroads Mulls
Real Estate Searches
The $60 million Alaska Railroad Corporation will consider
searching for real estate managers, said Pam Barbeau, benefits
manager with the defined benefit plan. She said the fund has
no definite plans and might not decide until next year. The
fund is analyzing its current real estate manager lineup; its real
estate investments now represent 8% of the portfolio, below
the 15% target. The fund will work with its adviser, Chris
Tauber of Mercer.
The fund targets a 17.5% investment in large-cap value, 17.5%
in large-cap growth, 10% in small-caps, 15% in international
equities, 25% in fixed income and 15% in real estate.
“RIGHT NOW, I’M NOT SEEKING FAME, FORTUNE, OR A
CORNE
I’M LOOKING FOR THE OTHER HAL
Created for a new generation of financial professionals, Thomson Reuters Eikon
instantly access the leading source of data and commentary to gain insights into wh
MML100410
9/30/10
5:03 PM
Page 11
October 4, 2010
Arkansas Judicial Trades Loomis
For Wellington
The $131 million Arkansas Judicial Retirement System has
terminated Loomis Sayles’s contract to manage a 15% growth
equity allocation and has hired Wellington Management as
its replacement.
Jay Wills, Arkansas Judicial’s staff attorney, said board
members were uncomfortable with administration and personnel
changes within the firm’s growth equity team, which had
previously managed around $24 million for the system. He did
not specify the changes to which he was referring.
Westfield Slates FOF
Manager Search
The $120 million Westfield (Mass.) Contributory Retirement
System is looking for a manager to run a $6 million private
equity fund-of-hedge-funds mandate. CIO Raymond
Depelteau said the board believes now is a good time to add
private equity to the portfolio because the asset class has,
historically, performed well coming out of recessions.
The move will be funded through a reduction in Westfield’s
equity portfolio. The fund’s asset mix is currently equities at 70%
and fixed income at 30%, Depelteau said.
Responses to the request for proposals are due by Oct. 15.
Visit www.moneymanagement.com or www.iisearches.com for
the RFP.
Marketing Strategies
Citi Introduces Pension Admin
Biz In Canada
Citigroup Fund Services has will delve into the pension
administration business in Canada, and has hired an executive from
a competitor to run the business, according to Gurmeet Ahluwalia,
Canada head of securities and fund services product. Ahluwalia
declined to name the executive because of a non-compete
agreement in the exec’s contract that runs until Oct. 8.
The firm will offer global custody, performance analytics, fund
valuation and benefits payment services to Canadian pensions with
assets under management of $250 million or more. Citi has been
in the custodial business in Canada for about 25 years, and entered
the global custody business around four years ago. Pension
administration is “a natural extension,” said Ahluwalia. In the
F OF MY IDEA.”
n is more comprehensive, more intuitive, and more collaborative than anything you’ve ever worked with. Now,
hat’s moving the markets and your portfolios. See the demo at thomsonreuters.com/eikon NEW ERA. NEW TOOLS.
© 2010 Thomson Reuters. Actor portrayal of ﬁctional event.
R OFFICE.
GO
ONLINE
TODAY
Money Management Letter is a powerful
portfolio of leads and critical information to
help investment managers grow AUM.
Are you getting the most out of your subscription?
Did you know, as well as the print newsletter, Money
Management Letter is also available online? There are some
amazing benefits in your investment in Money Management
Letter in the services provided online. Stay 100% up-to-date on
the move with:
Breaking news alerts;
Extensive online archive of articles and data - save
time and money creating reports, it’s your
comprehensive research tool
24/7 live news updates via the website - news is
posted as it happens;
Tailored RSS feeds to suit your information needs;
Daily email news summaries direct to your PC or
mobile device;
Login now*: to make the most of your
Money Management Letter subscription today!
* To login you will require your username and password. If you have forgotten your username and password, simply call 1-800-715-9195.
MML100410
9/30/10
October 4, 2010
5:03 PM
Page 13
Canadian market, the firm has seen an increase in retirees
mirroring U.S. demographic shifts, and an increase in multiemployer pension plans, or MEPPS. And as employers try to take
advantage of the economies of scale that come with combining
pension plans, he said, he thinks Citi can offer more streamlining
on the administrative side.
Treesdale Forms Real Estate Arm
Treesdale Partners, a New York-based hedge fund with
approximately $1 billion in investments, has started Treesdale
Real Estate Partners, a joint-venture firm that will focus on
distressed student housing nationwide. The firm will target
multi-unit housing and apartment complexes near college
campuses that have high capacity but can no longer make
People
Arlington County Retirement CIO
Steps Down
The $1.3 billion Arlington County Employees’ Retirement System
is looking for a new cio after Greg Samay resigned last month.
Samay said that he left for personal reasons and declined to
elaborate. He’s looking into other job opportunities at the
moment, but doesn’t have a specific idea of what he plans to do
next, he added.
In the interim, he said, Daniel Zito will be acting as plan
director. Plan representatives did not return calls for comment by
press time.
Pyramis Vet Shifts To Consulting
Patrick McNelis, former head of global distribution and client
service for Smithfield, R.I.’s Pyramis Global Advisors, has
joined Stamford, Conn.-based Greenwich Associates as a
managing director in its strategic consulting and investment
management groups. A Greenwich spokeswoman, referring to a
statement from Greenwich’s Managing Director Steve Busby,
noted McNelis was hired for his extensive operational
experience, which will strengthen the firm’s consulting practice
going forward.
McNelis had been with Pyramis since 2008, when he was
hired as a executive v.p. in global sales and distribution (MML
Daily, 3/28/08). A spokesman for Fidelity Investments, Pyramis’
parent company, said the firm’s sales, relationship management
and consulting relations practices were reorganized earlier this
year and that McNelis will not be replaced.
Michael Barnett, an executive v.p. at Pyramis, currently
oversees sales in the U.S. and Canada. Senior V.P. Jim Carroll
payments on the investment. The firm was started by Oliver
Swan, former CIO of Campus Habitat, and Richard Steinbeg,
former president of Commercial Capital Holdings.
Residential apartment buildings outside college campuses have
an average occupancy rate of approximately 94%, but buyers
who bought at or near the height of the market are struggling to
make a profit. “We feel that real estate is a good play because
these historical prices are not going to last forever,” Swan said.
He added that this segment of the market is highly
fragmented because there are so many universities, and that the
top five firms in this area own only approximately 10% of the
market. Rather than focus on large markets, Treesdale RE will
target more concentrated but obscure locations. “Tishman
Speyer is not going to go to Champaign-Urbana and invest
$100,000 in real estate,” he said.
handles relationship management and consultant relations for
the firm.
Ex-Houston Muni Director
Elected To Board
David Long, former executive director of the
$1.9 billion Houston Municipal Employees
Pension System, has been elected to its board
of directors, according to fund documents.
Long captured 759 of 1,470 votes in a runoff
election. Incumbent Lee Pipes received 711
votes. Pipes had been a trustee “by
David Long
designation” when he served as executive
director. Roy Sanchez, treasurer for the Houston Organization
of Public Employees, was also elected. Houston Muni’s Board
Chairman, Sherry Mose, ran unopposed.
Long retired from Houston Muni in February. Rhonda
Smith has succeeded him as executive director. A spokesman for
Houston Muni did not immediately return calls for comment.
GET IT FRIDAY!
Paid subscribers now have access to a PDF of the upcoming
Monday’s newsletter on MML’s Web site Friday afternoon before 5
p.m. EDT. That’s a 64 hour jump on mail delivery, even when the
post office is on time! Read the news online at your desk or print
out a copy to read at your leisure over the weekend. Either way,
you’ll be getting our breaking news even sooner and starting your
week off fully informed!
13
MML100410
9/30/10
5:03 PM
Page 14
PLAN SPONSOR
PROFILE
Suzanne Bishopric
Director, UNJSPF
The United Nations Joint Staff Pension Fund (UNJSPF) is
the world’s largest international pension fund, with $38 billion
under management. Susan Bishopric, the fund’s director, uses
an expansive, if contrarian, approach to investing, and claims
the fund has weathered the economic downturn relatively
unscathed. She has worked at the U.N. since 1991, following
stints at McDonald’s as the Director of Financial Markets and
the Continental Grain Company as a v.p. and senior trader.
She was appointed director of the UNJSPF in January of
2008.
On Investing for the UN
investing, Bishopric is risk-averse in her strategy. “I think
pension investing is by nature conservative,” she said. “You
need to invest in companies and asset classes with some staying
power.” Part of that strategy is ignoring market fads. “Hearing
what everybody else is doing can be very interesting,” she said,
but added that she wants to avoid “crowded spaces.” “When
everybody likes something, one must exercise caution.” As
Treasurer of the U.N. investment fund, she shied away from
structured investments. Now, she is very cautiously looking at
potential investments in alternative assets, specifically funds of
hedge funds.
On Management and Consultation
Only 5% of the U.N.’s investments are externally managed, and
the fund has a team of 53 professionals who allocate funds with
an eye to asset class and geography, focusing on active
management. The externally managed assets are largely in real
estate small-cap equity. “The most important thing for the
pension fund is staff who are hands-on managers,” she said. “We
have found that we are beneficiaries of our
own fund and this is in the best alignment
of our interests,” she said in explaining the
fund’s heavy emphasis on internal
management.
Bishopric noted that some endowmentbased institutions have begun to follow her
investment style. “It looks like Harvard [University] is moving
towards our model” of focusing on internal management, she
said. Harvard has been increasing its internally managed
portfolio since it lost over 27% of its endowment over FY 2009,
according to two Harvard Management Company endowment
reports.
In the same spirit that led to in-house management, the
UNJSPF does not often rely on outside consultants. “We don’t
have a standing arrangement with any particular consulting
firm,” she said. “We do it á la carte.” She said the fund has no
upcoming plans to bring on other external managers, and that
central to internal stock selection methods are “safety, liquidity,
profitability and convertibility.”
“When everybody likes
something, one must
exercise caution.”
The UNJSPF is the most diverse
international fund by geography.
Although there are unique challenges in
managing pension assets and liabilities
for staff from 192 U.N.-member countries, Bishopric said
that on the investment side she doesn’t get “terribly fancy.”
“We’re an old fashioned 60/40 fund with a couple of twists.”
As of June 30, the U.N. had 61% of the fund in equities and
31% in bonds, with the rest spread across real estate and
short-term vehicles, though she is looking to expand the
equity investment to 63% and decrease bonds to 29%.
Bishopric considers investments in all member states. “We’re
continuously looking for investments in developing
markets,” she said, noting that the fund is overweight in the
MSCI emerging markets index.
Investment Strategy
UNJSPF’s investments are guided by the Secretary General
for Investments, Ban Ki-moon, who is advised by the
investment committee. Ban bears the ultimate fiduciary
responsibility for the fund, but delegates authority to the
Representative of the Secretary-General for Investments, who
supervises Bishopric. The last big shift in investing, as
Bishopric characterized it, was administered in March 2009
when the fund rebalanced its portfolio by bringing equities
“way up” from 51.9%.
Even with the enormous latitude that the U.N. allows in its
14
October 4, 2010
Personal
Bishopric speaks seven languages: Arabic, Japanese, French,
Italian, Spanish, Portuguese and English—the last three fluently.
She received her undergraduate degree in biological anthropology
and her MBA in Finance and Agribusiness from Harvard
University. She was born in England and has lived in Brazil and
the U.S.. Her mother, Anne Bishopric Sager, was Mayor of
Sarasota, Fla. As for hobbies, she sings in her church choir as a
soprano and has done so for 50 years.
MML100410
9/30/10
5:03 PM
Page 15
October 4, 2010
Search & Hire Directory
Powered by:
i i s e a r c h e s . c o m
The following directory includes search and hire activity from news and information service iisearches for the two weeks ending
Wednesday, Sept. 29. The accuracy of the information, which is derived from many sources, is deemed reliable but cannot be guaranteed.
The "Potential" category includes early notice of potential future activity and should not be construed as an ongoing search. All amounts
are in US$ millions unless otherwise stated. To report manager hires and new searches, please call Louis Pope, data manager, at
(212) 224-3211 or email at [email protected]. The below is a snapshot of activity; for more information, including access to RFPs and
contacts, please visit iisearches.com.
For further information on iisearches’ daily search leads and searchable database of mandates awarded and lost
since 1995, please visit iisearches.com or contact Keith Arends at (212) 224-3533 or [email protected]
Potential Searches
Total
Amount
Plan Type
Assignment
Consultant
Comments/Firm Hired
USD4,500
Public D.B.
U.S. / Active
Equity / All-Cap
N/A
Strategic Investment
Solutions, San Francisco, CA
The fund has placed Bivium Capital Partners on watch for
organizational changes. There is no timeframe for monitoring the firm.
USD60
Public D.B.
U.S. / Real Estate
N/A
Mercer, Los Angeles, CA
The fund will consider searching for real estate managers. It does not
have any definite plans yet and might not make a decision until next
year. The fund’s real estate investments now comprise 8% of the
portfolio, below the 15% target.
Columbia (Mo.) Police & Firefighters’
Retirement Plan, Columbia, MO
USD74.80
Public D.B.
U.S. / Consultant
N/A
None
The fund may issue an RFP for an investment consultant within the
next two to three months. Until now it managed all the funds in-house
without an advisor.
Columbia (Mo.) Police & Firefighters’
Retirement Plan, Columbia, MO
USD74.80
Public D.B.
U.S. / Multi Asset
N/A
None
The fund may issue an RFP for an investment manager within the next
two to three months. Until now all of its funds have been managed in-house.
Iowa Public Employees Retirement
System, Des Moines, IA
USD20,600
Public D.B.
U.S. / Consultant
N/A
None
The fund will seek a risk management consultant, in part to develop a
risk management framework focused on risk tolerance rather than
returns. Wilshire Associates won’t bid.
USD20,600
Public D.B.
U.S. / Real Estate /
REIT
N/A
Wilshire Associates,
Santa Monica, CA
The fund plans to conduct a search for a real estate investment trust
manager shortly. It is putting money into REITS in order to maintain its
exposure to real estate until the expected 2011-2012 dash to refinance ends.
USD20,600
Public D.B.
U.S. / Alternative / USD824
Real Assets
Santa Monica, CA
The fund is looking to build out a roughly $824 million allocation to real
assets. This will include Treasury inflation-protected securities and,
potentially, timber, farmland, master limited partnerships, private energy
partnerships, infrastructure or commodities. The fund will meet on Dec. 2 to
discuss how to implement the moves.
Los Angeles City Employees Retirement USD9,900
System (LACERS), Los Angeles, CA
Public D.B.
U.S. / Real Estate
N/A
Courtland Partners,
Cleveland, OH
The fund was slated to discuss issuing a request for information for a
separate account real estate manager at its Sept. 28 board meeting.
Merced County Employees Retirement
Association, Merced, CA
USD450
Public D.B.
U.S. / Active Equity
N/A
Milliman, San Francisco, CA
The fund has placed Delta Asset Management on watch due to poor
performance. The board recently reduced its allocation to the firm and
reallocated the assets to its international equity and passive equity portfolios.
There is no timeframe for monitoring the firm.
New Mexico Public Employees
Retirement Association, Santa Fe, NM
USD10,600
Public D.B.
International /
Active Equity /
Small-Cap
USD100
R.V. Kuhns & Associates,
Portland, OR
The fund’s investment committee has recommended launching a new search
for active small-cap international money managers. The mandate size has not
yet been determined but it may be between $100 million and $150 million.
The board will vote on the prospective allocation at its Sept. 30 meeting.
New Mexico Public Employees
Retirement Association, Santa Fe, NM
USD10,600
Public D.B.
International /
Active Equity /
Large-Cap Growth
N/A
R.V. Kuhns & Associates,
Portland, OR
The fund’s investment committee has recommended a search for an
international large-cap growth manager. Neither the timeframe for the search
nor the mandate size have been determined.
New Mexico State Investment Council, USD13,500
Santa Fe, NM
Public D.B.
International /
Active Equity
N/A
NEPC, Cambridge, MA
The system plans to increase its international equity investments to 15% from
9% over the long term. The funding will come from reducing its hedge fund
allocation to 5% from 15%.
New Mexico State Investment Council, USD13,500
Santa Fe, NM
Public D.B.
U.S. / Active Fixed
Income
N/A
NEPC, Cambridge, MA
The system has plans to up its domestic bond allocation to 20% from 15%
over the long term.
Orlando Firefighters Pension Fund,
Orlando, FL
USD228
Public D.B.
Value
N/A
NEPC, Cambridge, MA
The plan is considering FLAG Real Estate Partners and Metropolitan Real
Estate Partners for a value-added non-core real estate brief. A timeframe for
its decision was not disclosed.
Orlando Police Pension Fund, Orlando, FL USD342
Public D.B.
Value
N/A
NEPC, Cambridge, MA
Estate Partners for a value-added non-core real estate brief. The timeframe
for a decision was not disclosed.
Sacramento County Employees
Retirement System, Sacramento, CA
USD5,100
Public D.B.
U.S. / Active Fixed USD49.60
Income / Debt
Mercer, New York, NY
The system has dropped European Credit Management for organizational
changes. The firm managed roughly $49.6 million in European debt
instruments for the fund, which is slated to be redeemed in two installments.
Sonoma County Employees’ Retirement
System Association, Santa Rosa, CA
USD1,300
Public D.B.
Global / Active Equity N/A
Hewitt Ennis Knupp (formerly The board expects to make a decision regarding launching a search for a
Ennis, Knupp & Associates), global equity manager shortly.
Chicago, IL
Fund & City
Alameda County (Calif.) Employees
Retirement Association, Oakland, CA
Alaska Railroad Corporation,
Anchorage, AK
Account
Size
15
MML100410
9/30/10
5:03 PM
Page 16
October 4, 2010
Potential Searches (cont’d)
Total
Amount
Plan Type
Assignment
USD1,300
Public D.B.
International /
Active Equity
N/A
Hewitt Ennis Knupp (formerly The board expects to make a decision on launching a search for a non-U.S.
Ennis, Knupp & Associates), equity manager shortly.
Chicago, IL
USD1,300
Public D.B.
U.S. / Active Fixed
Income / Core-Plus
N/A
Hewitt Ennis Knupp (formerly The board will make a decision on launching a search for a core plus fixedEnnis, Knupp & Associates), income manager.
Chicago, IL
U.S. / Consultant
N/A
None
The fund has issued a request for proposals seeking a consultant for its global
equity consultant spring-fed pool. Responses to the RFP are due Nov. 9.
Fund & City
Account
Size
Consultant
Comments/Firm Hired
New Searches
CalPERS, Sacramento, CA
Cambridge (Mass.) Retirement System,
Cambridge, MA
USD207,800 Public D.B.
USD605
Public D.B.
Core
USD20
Segal Advisors, Boston, MA
The fund has issued a request for proposals seeking a core open-ended real
estate manager. All proposals are due Oct. 7.
USD2,800
Public D.B.
U.S. / Active
Fixed Income
USD200
Pension Consulting Alliance,
Portland, OR
The fund is seeking active fixed income managers to handle a $200 million
brief. Interested parties should contact Pension Consulting Alliance.
Jacksonville (Fla.) Police & Fire Pension USD982
Fund, Jacksonville, FL
Public D.B.
U.S. / Active Equity / USD50
Large-Cap Value
Summit Strategies Group,
St. Louis, MO
The fund has issued a request for proposals for a large-cap value mandate of
approximately $50 million. All responses are due Oct. 20.
New Bedford Contributory Retirement
System, New Bedford, MA
USD195
Public D.B.
Global / Alternative USD20
The fund has issued a request for proposals seeking a global tactical asset
allocation manager. All proposals are due Oct. 7.
New Bedford Contributory Retirement
System, New Bedford, MA
USD195
Public D.B.
Emerging Markets / USD10
Multi Asset
The fund has issued a request for proposals seeking an emerging markets
manager. All proposals are due Oct. 7.
Westfield (Mass.) Contributory
Retirement System, Westfield, MA
USD120
Public D.B.
U.S. / Private Equity
None
The fund has issued a request for proposals seeking a manager to handle a
private equity fund of hedge funds mandate. All proposals are due by Oct. 15.
Finals presentations will be held on Dec. 15.
USD4,500
Public D.B.
International / Active N/A
Equity / Small-Cap
The fund is slated to discuss a short list of candidates for an approximately
$105 million international small-cap equity mandate. The fund received
responses from eight firms.
City of Ann Arbor Employees’
Retirement System , Ann Arbor, MI
USD364
Public D.B.
Global / Consultant
N/A
None
The fund is currently reviewing 20 proposals in its search for an investment
consultant. It may select finalists by month’s end.
Colorado Fire & Police Pension
Association, Greenwood Village, CO
USD2,800
Public D.B.
U.S. / Active Fixed
Income / Core-Plus
N/A
Encino, CA
The fund has terminated Western Asset Management from a core plus bond
mandate. It will move the assets over to a passive aggregate bond exposure
in order to fund new fixed income mandates.
USD2,800
Public D.B.
U.S. / Active Fixed USD48
Income / High-Yield
Encino, CA
The fund has terminated TCW Group from a high-yield bond mandate. The
assets will be placed in a passive aggregate bond exposure in order to fund
new fixed income mandates.
Fairfax County (Va.) Educational
Supplemental Employees Retirement
System, Springfield, VA
USD1,630
Public D.B.
U.S. / Private Equity / N/A
Mezzanine Finance
NEPC, Cambridge, MA
The system has interviewed Permal Capital Management and Lexington
Partners and plans to make due diligence visits next month. The moves are
part of iprivate equity push; the firm will make a decision on a manager
in November.
USD20,600
Public D.B.
Global / Asset Study
Santa Monica, CA
The fund has recently completed an asset review and has clipped its U.S.
equities and fixed income portfolios to build out a roughly $824 million
allocation to real assets, including Treasury inflation-protected securities and,
potentially, timber, farmland, master limited partnerships, private energy
partnerships, infrastructure or commodities. The fund also increased its
allocation to private equity to 13% from 10%.
Merced County Employees Retirement
Association, Merced, CA
USD450
Public D.B.
U.S. / Active Equity / N/A
Large-Cap Value
Milliman, San Francisco, CA
EARNEST Partners will remain on watch due to poor performance. The board
recently reduced its allocation to the firm and reallocated the assets to its
international equity and passive equity portfolios.
New York City Employees Retirement
System, Brooklyn, NY
USD39,000
Public D.B.
U.S. / Hedge Funds USD133
Callan Associates,
Florham Park, NJ
The system has terminated Breeden Capital Management, which ran an .
approximately $133 million mandate. The plan’s withdrawal from the firm is
expected to take 18-24 months
Orlando Firefighters Pension Fund,
Orlando, FL
USD228
Public D.B.
U.S. / Hedge Funds / N/A
Fund of Hedge Funds
NEPC, Cambridge, MA
The fund was slated to interview Crestline Partners, Entrust Capital, GAM
USA, and Grosvenor Capital Management for a 5% fund-of- hedge-funds
mandate at the end of August. It could not be gleaned whether a final
selection has been made.
Orlando General Employees Pension
Plan, Orlando, FL
USD155
Public D.B.
Fund of Hedge Funds
NEPC, Cambridge, MA
USD6
Updated Searches
16
N/A
MML100410
9/30/10
5:03 PM
Page 17
October 4, 2010
Updated Searches (cont’d)
Total
Amount
USD155
Plan Type
Public D.B.
Assignment
Value
Orlando Police Pension Fund, Orlando, FL USD342
Public D.B.
Police & Fire Retirement System of
Springfield (Mo.), Springfield, MO
USD143
Public School Teachers’ Pension &
Retirement Fund of Chicago, Chicago, IL
Fund & City
Orlando General Employees Pension
Plan, Orlando, FL
Account
Size
N/A
Consultant
NEPC, Cambridge, MA
Comments/Firm Hired
Estate Partners for a value-added non-core real estate brief. The timeframe
for a decision was not disclosed.
Fund of Hedge Funds
NEPC, Cambridge, MA
Public D.B.
U.S. / Consultant
None
The board will interview finalists Becker, Burke and Associates, Dahab
Associates and Hammond Associates, in its search for an investment
consultant. It expects to make a selection by month’s end.
USD9,100
Public D.B.
U.S. / Hedge Funds / USD25
Fund of Hedge Funds
The fund was expected to select Lasair Capital, Plucios Management and
Rock Creek Group as finalists to run a $25 million fund of hedge funds
mandate at its Sept. 16 meeting.
San Diego City Employees Retirement
System, San Diego, CA
USD4,400
Public D.B.
Credit Suisse Customized
Fund Investment Group,
New York, NY
The fund may increase the capital available for co-investments to 30% from
the current 20% limit and increase the number of co-investments to as many
as 15. It may decide at its Sept. 30 meeting.
San Diego City Employees Retirement
System, San Diego, CA
USD4,400
Public D.B.
Global /
Asset Study
USD1,300
Public D.B.
U.S. / Alternative /
Real Assets
USD39
Hewitt Ennis Knupp (formerly The board is expected to recommend UBS Real Estate to manage a 3%
Ennis, Knupp & Associates), allocation to farmland in the UBS AgriVest Farmland fund.
Chicago, IL
Ventura County Employees Retirement
Association, Ventura, CA
USD2,750
Public D.B.
Global /
Active Equity
USD100
Hewitt Ennis Knupp (formerly The fund is looking at managers to potentially replace Acadian Asset
Ennis, Knupp & Associates), Management. The firm, which has been on watch for performance since
Chicago, IL
February, runs a $100 million global equity portfolio for the fund. Hewitt Ennis
will conduct a competitive review of small-cap managers to see how the firm
stacks up against its peers.
USD4,500
Public D.B.
U.S. / Active Equity / USD170
Small-Cap Value
Kennedy Capital Management
USD4,500
Public D.B.
U.S. / Private Equity / USD12.50
Venture Capital
Third Rock Ventures, LLC
USD4,500
Public D.B.
U.S. / Private Equity USD24
Sheridan Production Partners
Arizona Public Safety Personnel
Retirement System, Phoenix, AZ
USD6,300
Public D.B.
Emerging Markets / USD60
Active Fixed Income
NEPC, Cambridge, MA
Capital Guardian Trust Company
USD6,300
Public D.B.
U.S. / Hedge Funds
USD70
NEPC, Cambridge, MA
Och-Ziff Capital Management
USD6,300
Public D.B.
U.S. / Private Equity USD40
NEPC, Cambridge, MA
H/2 Capital Partners Llc
USD131
Public D.B.
U.S. / Active Equity
Callan Associates,
San Francisco, CA
Wellington Management
Arkansas Teachers Retirement
System, Little Rock, AR
USD9,600
Public D.B.
Timberland/Vineyards
Hewitt Ennis Knupp (formerly RMK Timberland Group
Ennis, Knupp & Associates),
Chicago, IL
Aurora (Colo.) City General Employees
Retirement System, Aurora, CO
USD285.40
Public D.B.
Timberland/Vineyards
Callan Associates,
Denver, CO
The Molpus Woodlands Group, LLC
Retirement System, Ann Arbor, MI
USD364
Public D.B.
U.S. / Active Equity / USD5.30
Small-Cap Growth
Gray & Company,
Atlanta, GA
Loomis, Sayles & Company
Retirement System, Ann Arbor, MI
USD364
Public D.B.
U.S. / Active Equity / USD13.70
Small-Cap Growth
Gray & Company,
Atlanta, GA
RhumbLine Advisers
City of Phoenix, Phoenix, AZ
USD2,700
Trust Fund
U.S. / Consultant
None
The city has rehired Southwest Consulting Group in order to advise on federal
program money, specifically for programs coming from the American Recovery
and Reinvestment Act (ARRA).
USD2,800
Public D.B.
U.S. / Passive
Fixed Income
USD150
Encino, CA
BlackRock
Contra Costa County Employees
USD4,300
Retirement Association, Contra Costa, CA
Public D.B.
International /
Active Equity
N/A
Milliman, Seattle, WA
William Blair & Co.
Memphis Light, Gas & Water Division
Pension System, Memphis, TN
Public D.B.
N/A
N/A
USD4,400
Hewitt Ennis Knupp (formerly The fund is slated to vote on one of four strategic asset allocation targets at
Ennis, Knupp & Associates), its Sept. 30 meeting in order to generate favorable long-term returns and
Chicago, IL
provide some downside protection for its portfolio.
Completed Searches
Arkansas Judicial Retirement System,
Little Rock, AR
USD1,000
USD24
N/A
USD15
None
SSM Partners
17
MML100410
9/30/10
5:03 PM
Page 18
October 4, 2010
Completed Searches (cont’d)
Total
Amount
USD5,000
Plan Type
Public D.B.
Assignment
U.S. / Real Estate
Account
Size
USD25
Municipal Employees Annuity &
Benefit Fund of Chicago, Chicago, IL
USD5,000
Public D.B.
U.S. / Real Estate
USD25
Nationwide Funds Group,
Philadelphia, PA
USD30,000
Manager of U.S. / Active Equity
Managers
Philadelphia, PA
USD30,000
Philadelphia, PA
Fund & City
Municipal Employees Annuity &
Benefit Fund of Chicago, Chicago, IL
Consultant
Marquette Associates,
Chicago, IL
Comments/Firm Hired
American Realty Advisors
Marquette Associates,
Chicago, IL
AFL-CIO Housing Investment Trust
N/A
None
Turner Investment Partners
Manager of U.S. / Multi Asset
Managers
N/A
None
American Century Investments
USD30,000
Manager of U.S. / Active Equity /
Managers Large-Cap
N/A
None
Diamond Hill Capital Management
Nebraska Investment Council,
Lincoln, NE
USD14,000
Public D.B.
International /
Passive Equity
USD300
Hewitt Ennis Knupp (formerly
Chicago, IL
State Street Global Advisors
Nebraska Investment Council,
Lincoln, NE
USD14,000
Public D.B.
USD15
Chicago, IL
Aries Capital
New York State Common Retirement
Fund, Albany, NY
USD50
R.V. Kuhns & Associates ,
Chicago, IL
The Blackstone Group
Fund, Albany, NY
U.S. / Hedge Funds /
Absolute Return
USD75
Chicago, IL
Elm Ridge Capital Management
Fund, Albany, NY
U.S. / Private Equity /
Venture Capital
USD15
Chicago, IL
High Peaks Venture Partners
Oakland Police & Fire Retirement
System, Oakland, CA
USD4,000
Public D.B.
U.S. / Active Fixed
Income / Core-Plus
USD45
Encino, CA
T. Rowe Price
Ohio Public Employees Retirement
System, Columbus, OH
USD68,000
Public D.B.
U.S. / Private
Equity
USD100
Permal Capital Management
Pennsylvania Municipal Retirement
System, Harrisburg, PA
USD1,360
Public D.B.
U.S. / Active
Equity / Large-Cap
USD60
Dahab Associates,
Bay Shore, NY
DePrince, Race & Zollo
Pennsylvania Municipal Retirement
System, Harrisburg, PA
USD1,360
Public D.B.
U.S. / Active Equity /
Small-Cap Growth
USD33
Dahab Associates,
Bay Shore, NY
M&I Investment Management
Pennsylvania State Employees
Retirement System, Harrisburg, PA
USD30,000
Public D.B.
Asia / Private
Equity / Buyout
USD7
Rocaton Investment Advisors,
Darien, CT
Asia Alternatives Capital Partners
USD30,000
Public D.B.
USD25
Norwalk, CT
Oaktree Capital Management
USD30,000
Public D.B.
USD10
Norwalk, CT
JMI Equity
USD30,000
Public D.B.
USD20
Norwalk, CT
Avenue Capital Group
San Diego County Employees
Retirement Association, San Diego, CA
USD7,400
Public D.B.
Global /
Infrastructure
USD75
Chicago, IL
Brookfield Asset Management
San Diego County Employees
Retirement Association, San Diego, CA
USD7,400
Public D.B.
Core
USD200
The Townsend Group,
San Francisco, CA
JPMorgan Asset Management
School Employees Retirement
System of Ohio, Columbus, OH
USD9,200
Public D.B.
Emerging Markets /
Active Equity
N/A
St. Louis, MO
Genesis Investment Management Ltd.
School Employees Retirement
System of Ohio, Columbus, OH
USD9,200
Public D.B.
Emerging Markets /
Active Equity
N/A
St. Louis, MO
Hexam Capital Partners
Stanislaus County Employees
Retirement Association, Modesto, CA
USD1,200
Public D.B.
U.S. / Infrastructure
USD30
Kohlberg Kravis Roberts
None
Smith, Graham & Company
State Street Global Advisors (SSgA),
Boston, MA
USD 1e+006 Manager of U.S. / Active Fixed
Managers
Income / MortgageBacked Securities
Tennessee Consolidated Retirement
System, Nashville, TN
USD29,800
Public D.B.
U.S. / Alternative /
Energy
USD30
Cambridge Associates,
Boston, MA
EnCap Investments
Texas Municipal Retirement System,
Austin, TX
USD17,000
Public D.B.
Global / Passive
Fixed Income /
Treasury Inflation
Protected Securities
USD850
Chicago, IL
Colchester Global Investors
N/A
For a complete version of the Searh & Hire Director y, please visit www.moneymanagementletter.com
18
MML100410
9/30/10
5:03 PM
Page 19
October 4, 2010
FLORIDA SBA
(continued from page 1)
June 2011, said Deputy Executive Director Kevin SigRist at the
board’s quarterly meeting on Sept. 27. The increase is the result of
an asset allocation study in June by consultant Ennis Knupp, led
by Chicago-based Principal Mike Sebastian. After hearing
proposals at the meeting from real estate consultant the Townsend
Group, the fund will adjust its real estate investments as well.
SBA may devote as much as $500 million to debt-oriented
strategies, $1 billion to hedge funds and related vehicles, $800
million to real assets, and $200 million to other opportunistic
and special situations to diversify its alts portfolio further. Within
the real assets area, the SBA is considering two timber managers
for a potential $350 million allocation, assisted by the Townsend
Group. The fund is also evaluating infrastructure investments.
For the rest of the real assets area, the SBA has considered
commodities, but SigRist said the board might prefer
commodities-focused private equity.
The board’s infrastructure discussions have so far been
preliminary—mostly about where and how it can invest—
according to Communications Director Dennis MacKee, and
there’s no formal search. The board is also filling out its hedge
fund portfolio and plans to commit $500-$700 million to six
managers after due diligence. The fund just closed a $125 million
allocation to a corporate activist hedge fund and has chosen the
six other managers for event-driven, credit-oriented, and equity
long/short strategies. MacKee declined to name the managers.
The SBA plans to shift focus to core strategies for its 27%
allocation to fixed income, where the focus was previously on
core-plus. The board believes the fund has enough high-yield
exposure from approximately $3.7 billion of debt-oriented
commitments (some of which are unfunded) in its strategic
investments and will wind down its high-yield fixed-income
bucket, where it employs four managers, SigRist said. The board
will likely retain one manager in the space and will complete the
transition in October or November. It plans to bring about half
of total fixed income management in-house, said MacKee. The
fund has eight incumbents handling the allocation.
SBA is also looking for global REIT managers, as it
determines whether it can move domestic accounts with its
current managers to global mandates, SigRist said. The board
decided this summer to move its domestic REIT allocation to a
global one in consultation with The Townsend Group. The firm
also suggested in the meeting that the board boost its ceiling for
non-core real estate investment from 20% to 30% to squeeze
more alpha from the sector. The board has continued its
combination of domestic and international equities into a global
allocation planned in the study, hiring M&I Investment
Management Corp., Cupps Capital Management, and Signia
Capital Management for small-cap mandates, said MacKee. He
declined to disclose the size of the investments.
The fund has also narrowed the list of candidates to replace
the fund’s chief operating officer and chief financial officer—the
previous COO/CFO Gwenn Thomas announced her plans to
retire this summer. Thomas will leave after her replacement is on
board. Ash Williams, executive director and cio, said at the
meeting that the fund has narrowed down its field of candidates
and may make two hires.
—Alexandra Scaggs
TRIAL ORDER FORM
❑ YES! Please begin my no-risk free trial to Money Management Letter today!
NAME
TITLE
B400101
FIRM
ADDRESS
CITY/STATE
POSTAL CODE/ZIP
COUNTRY
TEL
FAX
E-MAIL
The information you provide will be safeguarded by the Euromoney Institutional Investor PLC group, whose subsidiaries may use it to keep you informed of
relevant products and services. We occasionally allow reputable companies outside the Euromoney Group to mail details of products which may be of
interest to you. As an international group, we may transfer your data on a global basis for the purposes indicated above.
( ) Please tick if you object to contact by telephone.
( ) Please tick if you object to contact by fax.
Tel: 1-212-224-3486
Fax: 1-615-377-0525
Email: [email protected]
( ) Please tick if you object to contact by email.
( ) Please tick if you do not want us to share your information with other
reputable businesses.
Mail: Institutional Investor News
P.O. Box 5016, Brentwood
TN 37024-5016
MML100410
9/30/10
5:03 PM
Page 20
IPERS PREPS
October 4, 2010
OKLAHOMA TEACHERS
The fund plans to take distributions in its private real estate
portfolio to fund its planned REIT investments in order to
maintain exposure to real estate until uncertainty surrounding an
anticipated dash to refinance by real estate developers in 20112012 is past. At that point the fund may reduce its REIT
exposure and return to increased private real estate investments,
Koch said.
The plan is seeking a risk management consultant to develop a
risk management framework focused on risk tolerance rather
than returns, Koch said. IPERS’ consultant, Los Angeles-based
Wilshire Associates, has agreed not to bid for the mandate.
IPERS’ new targets are U.S. equities at 23%, international
equities at 15%, private equity at 13%, core plus bonds at 28%,
high-yield bonds at 5%, TIPS at 5%, real estate at 8% real assets
at 2% and cash at 1%.
—Carl Winfield
yields, even if commodities prices are in decline. He also noted,
as a caveat, that master limited partnerships can be volatile since
they’re traded in the equity market daily.
Managers interested in a mandate from the fund must have at
least three years of experience with master limited partnerships
and at least two tax-exempt clients with total fund assets of $250
million or more.
Oklahoma is the latest fund to commit to master limited
partnerships this year. The Philadelphia Board of Pension and
Retirement committed $60 million to master limited
partnerships earlier this month. Knoxville City Employees
Retirement Fund put $20 million into a master limited
partnership with Leahwood, Kan.-based Tortoise Capital
Advisors in August (MML Daily, 8/23). The Arkansas Local
Police & Fire Retirement System committed $5 million to a
master limited partnership run by Chickasaw Capital
Management in June (MML Daily, 6/8).
—C.W.
At Press Time
City of Newport To Look For
Active Equity
The City of Newport Trust and Investment Commission may
look for active managers for either an $8.2 million large-cap
growth mandate or a $6.6 million international equity mandate
in early 2011. Newport will also interview finalists for a firsttime foray into commercial real estate on Oct. 7.
The commission, which manages $66 million for the police
and fire pension plan and $13.8 million in a trust for other postemployment benefits (or OPEB), currently has all the money in
index accounts with Vanguard. Senior Accountant Jennifer
Findlay said the commission had decided to keep the funds in
passive management because of recent market turmoil. It
terminated Artio Global Investors earlier this year and Marvin
& Palmer in 2009 for international and large-cap equity
mandates, respectively. Both managers declined to comment
(MML Daily, 4/8).
Newport may choose a commercial real estate manager to
manage 5% of its fire and police pension plan next month,
Findlay said. The city’s consultant, Dahab Associates, assisted
with the search. The commission will interview American
Realty Advisors, Cornerstone Real Estate Advisors, and UBS
Realty Investors Oct. 7, and could choose a manager shortly
thereafter. Any investment would be the city’s first in real estate.
The commission has considered real estate investment for more
than a year, but delayed its decision because of market
conditions. If the hire is made, the funding will come through a
general rebalancing.
20
Quote Of The Week
“Hearing what everybody else is doing can be inter esting [but]
when everybody likes something, one must ex ercise caution.” —
Suzanne Bishopric , director of the United Nations Joint Staff
Pension Fund, on risk aversion in the fund’s investment strategy (see
Plan Sponsor Profile, page 14).
One Year Ago In Money Management Letter
The Iowa Public Employees Retirement System had allocated
3% of its portfolio to Treasury Inflation-Protected Securities,
reducing its fixed-income allocation to do so. [In June, the board
chose to split the $600 million TIPS mandate between
BlackRock, which will be managing $300 million passiv ely, and
Fishcer, Francis, Trees & Watts, which will manage the same
amount actively (MML Daily, 6/28).]
Five Years Ago
The Massachusetts Pension Reserves Investment Management
Board was looking for managers for $425 million in global
emerging market equity after terminating Capital Guardian
Trust Co. for poor performance. [Most recently, the board has
given its $650 million core and core value real estate mandate
with RREEF to its incumbents in the ar ea (MML Daily 6/1/10),
and named Michael Trotsky executive director after former
director Michael Travaglini moved to a hedge fund in J une
(MML Daily 8/5/10).]

3% - Money Management Intelligence

Transcription

Documents pareils

Information sheet: purchase

Online Casino City Blackjack

biographies of key professionals

PENSIONS AT A GLANCE 2009: RETIREMENT

employer with holding percentages

The Future of Retirement

Addoha Group: key player in the real estate sector

Information sheet: promotion of home ownership with

English - UNJSPF

Jeux Casino En Ligne Gratuit Video Poker Machine A Sous Casino

- Fiqsante.qc.ca

Equity Markets Product Catalogue - Natixis

paroles s`envolent, les écrits restent - anglais

Slot Machine Gratuites 8 Line Jeux De Cartes Casino Jeux

here

press release

Real estate challenge Remax

Real estate price indices for Germany

1. Executive Summary

Current Economic Conditions - Maths-Fi

Statutory auditors` report on the consolidated financial

leveraged Buyouts – evidence from French deals1