The $11.1 billion Connecticut Trust Funds has a new asset allocation policy and investment guidelines, according to State Treasurer Christopher Burnham, the sole trustee.
The new asset allocation policy includes:
Placing ranges around target weightings to allow flexibility for management of assets.
Consolidating all domestic and foreign bond and mortgage funds under one fixed-income asset class.
Investments in international bonds will be done on an opportunistic basis, rather than having a permanent commitment.
Increasing the target commitment to domestic equities to 40% from 34%, with a maximum target of 55%.
Eliminating target weights on real estate and alternative investments to reduce pressure to attain those targets. Future investments will be made on an opportunistic basis.
Pension simplification measures probably won't be included in the tax bill the Senate Finance Committee is expected to vote on later this week, sources say.
The provisions were in the tax bill passed by the House Ways and Means Committee Sept. 19.
But the Senate Finance version is expected to include a provision allowing companies to tap their surplus pension assets to pay for other employee benefits.
An aide to Senate Finance Committee Chairman William V. Roth Jr. said the Senate Republicans' package had not been made public yet.
The departure of Michael Steinhardt from the hedge fund business means $2 billion in assets committed to a macrostyle manager will have to be reallocated.
E. Lee Hennessee, associate principal with the hedge fund group of Weiss Peck & Greer, said there will be a mad scramble to reallocate his assets.
David Storrs, president of The Common Fund, which has invested with Mr. Steinhardt since 1982, said "We consider that he has really done a sensational job as an investment manager, and we will be sorry not to have him investing with The Common Fund for the future."
The PBGC should consider increasing guarantee limits on its multiemployer program, said Executive Director Martin Slate.
The guarantee, fixed since 1980, is capped at just less than $6,000 a year for retirees with 30 years of service vs. $31,000 annually for a single-employer plan participant retiring at age 65.
The PBGC's multiemployer plan had a surplus of $197 million at the end of 1994.
The change would need congressional approval.
The quantitative investment group formed last year from the breakup of units of National Investment Services of America has dissolved.
Joseph Gorman, principal and managing director of National Investment Management, is retiring; Nardin L. Baker, principal and managing director, has accepted a research position in the quantitative group of Grantham Mayo Van Otterloo.
Earlier this year, Kathleen A. Morgan, a principal and managing director, left to co-found another money management firm, Morgan Dempsey Capital Management.
Morgan Dempsey took over most of National Investment Management's assets, about $65 million.
The Association of Former Pan Am Employees has filed a Freedom of Information Act request with the PBGC to find out why the agency has not made final rulings on benefits for the employees.
The request asks for information on 11 separate issues, including: all memoranda and records relating to any minimum funding waivers granted to Pan Am's Cooperative Retirement Income Plan; all records relating to PBGC's decision to delay final determination of benefits; and all bankruptcy court settlement records.
A PBGC spokesman said the request is unusually large and that the agency is currently figuring out a cost estimate.
The former employees filed the information request to push the PBGC into making final determination on benefits for early retirees.
Jo Witt, investments and financial operations manager at the Oklahoma Teachers' Retirement System, Oklahoma City, has been named secretary-treasurer of the $3 billion system.
She had been acting in that capacity since Randy Kopsa left to become director of investments at the Boy Scouts of America.
Trustees of the $249 million Ann Arbor (Mich.) Employees' Retirement System picked Duncan-Hurst Capital Management as the fund's second small-cap manager, said Maia Bass, clerk.
The fund plans to allocate up to $21 million to Duncan-Hurst Capital.
The pension fund already has $16 million in small-cap stocks with Ariel Capital Management.
Allocations to existing managers will be reduced to fund the new hire.
Omaha School fund taps 3
The $450 million Omaha (Neb.) School Employees' Retirement System invested $32 million in three real estate commingled funds, said Michael W. Smith, director.
Officials gave $11 million to Aetna's RESA and $11 million to J.P. Morgan's Investment Real Estate Fund.
The fund committed $10 million to the Koll/Bren KB Opportunity Fund III, but hasn't funded it yet, Mr. Smith said.
The fund's consultant, Eileen Byrne Associates, assisted in the search.
Stanley Nabi joined Wood Struthers & Winthrop as vice chairman and chairman of the investment policy and strategy committee, a new position.
Mr. Nabi previously was executive vice president and chief investment strategist at Bessemer Trust.
His responsibilities have been assumed by Timothy Morris.
Median total compensation for equity portfolio managers is $340,000, vs. $245,000 for fixed-income managers, a new survey by Eager & Associates shows.
Experience did not help fixed income-portfolio managers, whose base salaries increased from $115,000 with five to 10 years' experience to $130,000 for more than 15 years.
Equity manager salaries jumped to $188,000 for more than 15 years experience, from the same $115,000 for five to 10 years' experience.