IRS guidance due
The IRS plans to give guidance this year to pension funds and other tax-exempt investors on whether they can, as part of an investment strategy or a hedge, short stocks without incurring unrelated business income tax.
In 1988, the agency issued a private letter ruling to The Common Fund exempting it from UBIT on profits from short sales under certain conditions. Dozens of pension funds and money managers since have requested advice on the matter.
Putnam realigns leadership
Putnam Investments is integrating its defined benefit and defined contribution plan service departments.
Thomas J. Lucey, chief of institutional management and a senior managing director, will add responsibilities for defined contribution plans to his role as head of defined benefit plan services. Richard N. Pallan, who founded and had operating responsibility for Putnam's defined contribution unit, becomes chief of business strategy and senior managing director for the entire company.
MIG not bidding for firm
MIG Realty Advisors is not among the bidders seeking to acquire Mellon/McMahan Real Estate Advisers, said Larry Wright, chief investment officer. Earlier, sources had listed MIG as one of six bidders. A Mellon spokeswoman said no bidder has been chosen.
Kern County shifting assets
Trustees of the $625 million Kern County (Calif.) Employees' Retirement Association are studying whether to put $100 million of active, domestic equity assets into active equity management, straight indexed equities or an enhanced large-cap domestic stock index fund.
The $100 million comes from the termination of Newbold's Asset Management, which had managed $69 million, and Sunbank Capital Management, which had managed $31 million. Assets will be parked temporarily in an S&P 500 fund.
N.Y. State drops Pathway
The $58 billion New York State and Local Retirement Systems' contract with Pathway Capital Management, its alternative investment consultant, expired March 1 and will not be renewed, said Cynthia Munk, a spokeswoman for the fund. No replacement has been named.
Case Western hires AMB, TA
The $550 million endowment of Case Western Reserve University hired AMB Institutional Realty and TA Associates Realty for $5 million each, said Kathleen Chapman, assistant treasurer.
Cambridge Associates assisted.
PRIM does global buy-outs
The $3.9 billion Massachusetts Pensions Reserve Investment Management Board, Boston, will invest $40 million in international buy-out and venture capital firms this year, said West Coghlan, senior investment officer.
University of Texas taps 5
The University of Texas System, Austin, with about $5.5 billion in endowment assets, hired five small-cap managers for its first emerging managers equity trust: Apodaca-Johnston Capital, Beal Investment, Davis Hamilton Jackson, Fortaleza Asset and Pe?a Investment.
Each will manage an undisclosed portion of the $105 million trust. Washington Hackett Smith, which administers the equity trust, assisted.
Cannon drops Witter
The $120 million Cannon Foundation dropped William D. Witter as an equity manager, assigning the assets to existing manager Standish Ayer & Wood. Thomas C. Haywood, secretary and treasurer, said Witter ran a small amount.
Marblehead drops manager
The $24 million Marblehead (Mass.) Contributory Retirement System has dismissed its sole manager, deBurlo Group, and has temporarily placed its assets in Pension Reserves Investment Trust pending asset allocation decisions by the board.
Zisler joins Nomura
Randall Zisler has joined Nomura Securities International as managing director and director of real estate research, a new position. He had been managing director and principal of Pension Consulting Alliance. No replacement has been named.
Solon back in business
Solon Asset Management was re-launched March 1, following the resignations of two of Solon's principals from Montgomery Asset Management.
James R. Midanek, chief investment officer of Solon, left Montgomery March 1. He had been CIO-fixed income.
Deborah Hicks Midanek, chief executive officer and director of marketing, left Montgomery in October, where she had been director of mutual funds.
They closed Solon in 1992 when they joined Montgomery. Solon has about $200 million in assets.
State Street to launch funds
State Street Research & Management plans to hire an international investment team in-house to offer global mutual funds and global institutional asset management, said Charles Glovsky, senior vice president. He said State Street plans to hire one person to head up the effort and two or three additional staffers.
Synthetics field grows
State Street Bank and Trust is entering the rapidly growing synthetic GIC business by offering book value wrappers for synthetic contracts. Industry sources praised the entry of State Street as increasing the number of wrap providers and increasing competition for book value wraps now dominated by Bankers Trust and Provident Mutual Life.
Copeland sets up new unit
The Copeland Cos. established a subsidiary to provide retirement planning services for the health-care industry.
Copeland Healthcare Services will offer bundled retirement programs. Frank P. Doherty, the new company's president, said Copeland's 650 existing hospital clients have been demanding more integrated services for retirement programs, particularly in the area of non-qualified supplemental plans for highly compensated employees.
