A bill raising to 55% from 50% the amount the $11 billion Connecticut Trust Funds may invest in equities waits Gov. John Rowland's signature.
An additional 5% investment in equities is allowable for six months to accommodate market fluctuations.
State Treasurer Christopher Burnham sought the increase because last year's bond market drop increased the pension fund's percentage in equities, forcing the pension fund to sell stocks.
A headhunter has filed suit against Nancy Tengler, managing director of UBS Asset Management.
Nate Spain, head of the Spain Search Group, filed suit in Superior Court in Contra Costa County, Calif., claiming Ms. Tengler owes him a fee for helping find her position at UBS after leaving Spare Kaplan Bischel and Associates.
The suit seeks $195,000 in fees and additional punitive damages. It claims Mr. Spain helped arrange a meeting with Chas Burkhart, president of Investment Counseling Inc., that resulted in Ms. Tengler getting the UBS position.
Mr. Spain could not be reached; Ms. Tengler was out of the country at presstime.
A spokesman for Ms. Tengler said she had not contracted with Mr. Spain, who had contacted her on behalf of another client.
The spokesman also said it was Mr. Burkhart who brought up UBS.
Rep. Robert E. Andrews, D-N.J., last week introduced a bill that would give state and local workers the right to sue their employers, pension plan trustees and administrators in federal courts for failing to give benefits as outlined in plan documents. The bill, H.R. 1683, also would let public plan participants sue in federal courts to block their employers and plan trustees and administrators from breaching terms of the plan, and to obtain "other appropriate equitable relief."
The $400 million pension fund of Dow Corning Corp. will be unaffected by the Chapter 11 filing of the plan sponsor, a pension fund official said.
"It will be essentially business as usual" at the pension fund, said the Dow Corning official, who requested anonymity.
He noted the plan is fully funded.
Dow Corning filed in mid-May for federal bankruptcy law protection from mounting legal exposure to silicon breast implant liabilities.
The 35 billion Danish kroner ($6.2 billion) PKA Ltd. pension fund for health services workers, Copenhagen, hired Singer & Friedlander Institutional Asset Management to manage about a 20 million ($31.4 million) U.K. equities portfolio, sources confirmed. Officials at PKA and Singer & Friedlander declined to comment.
The account represents the first hiring for Singer & Friedlander's new institutional asset management arm.
Peter Dencik, who recently was named managing director for the unit, previously was deputy executive director of PKA.
Trustees of the $19 billion Minnesota State Board of Investment voted to terminate First Capital Advisers due to poor performance and loss of clients, said Howard Bicker, executive director. Securities in the $30 million domestic equity portfolio already have been sold, he said.
Telephone calls to First Capital CIO Valerian Butler-Smith were not returned.
Also, trustees placed Baring Asset Management on probation, pending the outcome of a review of the company, said Mr. Bicker. He expects the review to be completed by June. Baring manages a $200 million international equity portfolio for the board. A Baring spokeswoman said the firm had been notified about the board's action.
The $8.7 billion New York City Police Department Pension Fund terminated its relationship with The Boston Co. Asset Management, confirmed Jon Lukomnik, deputy comptroller-asset management.
Boston Co. managed a $107 million value equity portfolio for the pension fund; the money will be divided among the fund's existing managers, said Mr. Lukomnik.
Mr. Lukomnik declined to give a reason for the termination.
Last month, 19 Boston Co. executives quit to start their own firm.
Boston Co. spokesman Jonathan Hubbard said the firm would not comment about its clients.
A paper on "Pricing Swap Default Risk" by Eric H. Sorensen and Thierry F. Bollier won first place in this year's Graham and Dodd Awards, given by the Association for Investment Management Research.
The annual awards are given to the best financial analysis pieces published in the Financial Analysts Journal during the previous year.
The Salvation Army, Western Territorial Headquarters, trust fund tentatively hired Pilgrim Baxter to run a small-cap growth equity portfolio. The fund plans to assign the new manager $50 million, pending final contract terms. Further details weren't immediately available. SEI assisted in the search.
Pilgrim Baxter, with $2.8 billion in small-cap equities, has closed that investment style to new clients.
The $2.2 billion San Diego County Retirement Association in June will make a decision on whether to add a managed futures manager to its roster following its recently increased allocation to managed futures, said Richard N. Rose, CIO.
Mr. Rose said his best guess is that San Diego County's two existing managers will get the assets, although its possible one manager will be added.
About $65 million in separate accounts will be added to its existing $45 million allocation to managed futures, Mr. Rose said.
RP Consulting Group will assist with the hiring and helped formulate the new allocation.
Joseph F. Feeney Jr. has joined the newly formed Boston Partners Asset Management as a fixed-income portfolio manager. Mr. Feeney had been mortgage- backed securities portfolio manager for Putnam Investments, where he has not yet been replaced. Boston Partners was created by former employees of Boston Co. Asset Management.
Wisconsin State Auditor Dale Cattanach concluded the State of Wisconsin Investment Board overstepped its bounds in sending a threat of legal action to a local banker who criticized the fund's management of its cash investment pool.
The board should have consulted with the state attorney general before threatening litigation, he said.. SWIB staff had sent a letter in December to a local banker critical of the fund's management, and threatened both criminal and civil action.
Sens. Jim Jeffords, R-Vt., and Bill Bradley, D-N.J., will host a two-part television series on retirement savings this fall, a spokeswoman for Mr. Jeffords said.
The series, which has not been signed onto any network yet, intends to help Americans understand the need to save for retirement. It will examine the current three-legged retirement stool of personal savings, private pension systems and Social Security, to see if it is working well and if there is any need to change this system.