The Feb. 8 P&I Daily and the Feb. 20 Pensions & Investments (page 43, "Emerging managers blast PBGC restrictions") reported that Progress Investment Management Co. is considering the use of non-minority managers for the Progress Trusts. For some readers this statement, allegedly attributed to me, implies there is an inadequate supply of competent minority- and women-owned managers in the manager universe from which we can select. I'm writing to set the record straight for those who may be uncertain where we stand.
I recently mentioned to a P&I reporter that on several occasions Progress has been asked whether we have the capability to structure an emerging manager program including non-minority managers. This has been in response to RFPs or specific client requests. I pointed out we do maintain an emerging manager database that includes both minority, women and non-minority managers, and we have included non-minority money mangers in our search work on specific client request. I did not mention the Progress Trusts nor did I state that the trusts and existing separate account mandates for using minority-and/or women-owned managers has changed.
Our policy concerning use of minority-and women-owned managers in the Progress Trust and separate accounts remains what it has been since the firm was founded. Our steadfast commitment is to identify the best minority- and woman-owned money manager talent and provide opportunities for the talent to produce competitive investment returns for our clients through our Progress Trusts and separate accounts. Since our inception, Progress has funded 36 managers - 35 of which have been minority- and women-owned firms. (Progress has funded 16 African American, 9 Hispanic American, 8 women-owned and 1 Asian-American firm.)
The fact that we may be asked to include non-minority managers in a search for clients does not somehow mean we have changed the mandate for the Progress Trusts, or that Progress is somehow running out of competent minority managers from which to choose. Rather, it confirms that clients recognize Progress has developed certain skill competencies that can assist them to achieve a variety of their investment objectives.
The plain truth is there is an ample stable of competitively performing minority- and women-owned managers within the industry. The challenge for all of us in this industry is to recognize, nurture and support this abundant minority talent and create more, rather than fewer, opportunities for these managers to compete.
Executive vice president
Progress Investment Management Co.
Which tax hike larger?
I take exception to the Feb. 6 Opinion Page column written by Barry B. Burr mentioning tax increases.
The correct facts were supported by the Wall Street Journal on Oct. 6, 1994.
The 1982 tax increase was much larger than the 1993 tax increase in both constant dollars and relative to the gross domestic product.
The 1982 tax increase was $298.4 billion vs. $219.2 billion, and the 1982 tax increase was 1.06% of GDP while the 1993 tax increase was 0.67% of GDP.
Therefore the 1993 increase was 0.73% of the 1982 tax increase in constant dollars and only 63% of the 1982 increase relative to GDP.
Trowbridge Township Treasurer
Big manager gets bigger.
When reading the page 20 article, "Biggest money managers get bigger," in your Feb. 20 special Scoreboard report, we were surprised by one very important omission, MacKay Shields.
As a firm MacKay Shields has more than $12.6 billion under management. Our total net dollar gain for 1994 was an impressive $1.9 billion. With our equity division adding a net $1.8 billion in new assets, we believe we should have been identified as a top manager in the most new domestic equity category of this article.
While the reason for the oversight may have been clerical in nature, with the type of success MacKay Shields experienced last year, we would have appreciated the opportunity to have been included in your "Scoreboard" of managers for 1994.
Chairman and Chief Executive Officer
Property firm grows.
Your Feb. 20 special Scoreboard report, beginning on page 20, pointed out that real estate mangers showed surprising gains in 1994.
We weren't surprised by that - the real estate market has strengthened considerably in the past year and astute institutional investors are participating in the rebound.
The surprise for us was that The Yarmouth Group did not appear in the "Most new real estate business: Top managers $1 billion to $10 billion" category (table on page 21). Out total new U.S. discretionary institutional tax-exempt business gained in 1994 was $510 million. This would have put us fourth on your list.
Edward P. Meyer
Senior Vice President
The Yarmouth Group