CHICAGO - The $1.2 billion Chicago Transit Authority Employees' Retirement System terminated its managed futures manager, Hart-Bornhoft Group, a CTA staffer confirmed.
The staffer declined to say why Hart-Bornhoft was terminated, saying it was "a long story."
Hart-Bornhoft was hired less than a year ago to run $30 million in a manager-of-managers approach; it selected and oversaw a group of commodity trading advisers that invested the money.
No other details were available.
The fund's consultant, Ned A. Joachimi of Wellesley Group, could not be reached by press time. Patrick Hart, chairman of Hart-Bornhoft, declined comment.
BOSTON - William R. Parmentier, former assistant treasurer and investment manager for the $2.8 billion Grumman Corp. pension plan, has been named chief investment officer of Liberty Asset Management.
He replaces John Tobey, who left Liberty several months ago. Mr. Parmentier's job at Grumman was eliminated following Northrop Corp.'s takeover of Grumman last year.
Liberty manages $900 million, consisting primarily of two closed-end retail equity mutual funds.
PHILADELPHIA - Trustees of the $2.5 billion Philadelphia Municipal Pension Fund authorized CIO Sandra Parker to split $200 million of new cash between a commingled international bond fund and a commingled emerging market fund on a temporary basis.
The specific funds have not yet been selected.
The plan is to gain exposure to the two new asset classes now using the commingled portfolios and then to begin a search for separate account managers within six months.
Trustees in July approved allocating 8% to international bonds and 5% to emerging market investments.
Ms. Parker said she expects to look at funds run by the pension fund's existing slate of more than 20 money managers. "We will be looking at all of them to determine the best one to get the exposure we need. We just don't want the cash laying around," she said.
CLAREMONT, Calif. - The $70 million Claremont University endowment fund is undertaking a major asset allocation study, said Jennifer Stockton, assistant to the treasurer.
Northern Trust, its custodian, is assisting in the study, which the endowment expects to complete in six months.
She said it is the endowment's first such major study using an outside consultant in some years.
The study will recommend what changes the endowment could make with its allocation and investment managers.
The fund's current allocation is 48% domestic equities, 11% international equities, 3% emerging market equities and bonds, 33% domestic fixed income, 1% venture capital and 4% cash.
PULLMAN, Wash. - The $78 million endowment of Washington State University is considering toughening its benchmark for sole manager Brinson Partners, said Charles T. Knight, associate controller. The fund is working with its consultant, Cambridge Associates, and expects to make a decision in six months.
Mr. Knight said the fund is satisfied with Brinson, but hopes a new benchmark will provide an incentive to enhance returns.
Brinson, which has discretion to set asset allocation under a global investment strategy, has the fund invested 33.2% in domestic equities, 5.9% in international equities, 39.6% in domestic bonds and 21.3% in international bonds.
The endowment's current benchmark is 55% equities - 45% Wilshire 5000 and 10% MSCI World - and 45% fixed income -35% Salomon BIG and 10% Salomon World.
It is considering changing its benchmark to 65% equities and 35% fixed income. "But we don't know yet what to do with the subindexes," Mr. Knight said.
ST. LOUIS - McDonnell Douglas Corp. reached an agreement in principle to settle a lawsuit regarding retiree health care funding, offering certain non-union retirees added monthly cash pension benefit payments.
Non-union workers who retire before Dec. 1, 1996, will receive $100 more per month than they would have received under a plan announced in 1992. That plan shifted retiree health care funding to retirees from McDonnell Douglas, and was designed to cut the company's accumulated health care liability under then-new accounting practices. The plan was designed to save the company about $900 million. Retirees sued the company in different suits over the loss of health care benefits.
The $100 can be used in any manner retirees choose, although the intention is for it to be used to fund health care, company officials said in a prepared statement. George M. Snyder, a lawyer for retirees, said the money should cover the cost of health maintenance organization care for about 21,000 retirees. The company has said it will use its clout in the health care industry to keep its retirees' health care costs down.
TAUNTON, Mass. - Trustees of the $108 million Bristol County Retirement System are seeking a consultant to conduct an asset allocation study.
The decision follows a three-month in-house analysis of the fund's investments, said Thomas Hickey, counsel to the system and partner with the law firm Finnegan, Hickey, Dinsmoor & Johnson, Boston. Mr. Hickey is drafting an RFP for the consultant, he said.
The fund now has all of its money in a balanced fund with BayBanks. Officials already plan to move about $44 million into growth and value stocks with Freedom Capital. The amount of money the retirement system ultimately farms out to Freedom, and any other changes, will depend on the results of the asset allocation study, he noted.
QUEBEC CITY, Quebec - The approximately C$800 million (U.S.$589 million) pension fund of the University of Quebec expects sometime in the next six months to conduct searches for a managed futures manager, a global tactical asset allocation manager and a currency manager, said Andre Robitaille, executive director.
The managed futures allocation would be 4% to 5% of assets; global TAA, roughly 15%.
The currency manager would handle the currency component of the funds' C$240 million (U.S.$177 million) of non-Canadian investments.