CHEEKTOWAGA, N.Y. - Sierra Technologies Inc. is exploring whether to immunize or annuitize its $25 million defined benefit fund, said James Wallace, director-human resources. Newport Capital Advisers is assisting.
The plan is frozen.
He said a decision on whether to move to a structured investment to match liabilities might be made in the next few months.
Mr. Wallace also said Sierra's 401(k) plan assets will increase to $17 million from $11 million when employees of Lucas Aerospace, Reston, Va., join the plan. Sierra acquired the company this year.
He said Sierra estimated the addition in assets based on the expectation that most Lucas employees will roll over their defined contribution balances into the Sierra 401(k).
He doesn't expect to make any immediate changes to the plan's investment options.
TRENTON, N.J. - The New Jersey Investment Council, which oversees the state's public pension fund investments, will decide Nov. 29 whether to give the green light to emerging markets, said Roland M. Machold, director of the $40 billion New Jersey Division of Investment.
If the council approves the investment, a proposed rule will be presented for review; the process could take five months, he said.
Mr. Machold's division probably would not invest more than $480 million, or about 10% of the $4.8 billion allocation to international stocks.
Investment division officials have been studying the issue since passage of a state law in April that lets the division determine the riskiness of its entire portfolio instead of each asset class separately, Mr. Machold explained.
FAIRFIELD, Conn. - The Common Fund will redistribute $50 million of its $65 million invested with Steinhardt Partners to the other hedge fund managers in its $450 million private partnership fund, said Stephen Eckenberger, vice president.
Michael Steinhardt announced in October that he was exiting the hedge fund business.
The Common Fund also has $15 million invested in a special account that includes some less liquid investments that will continue to be managed by Steinhardt until they can be sold.
LOS ANGELES - An asset-liability study for the $18 billion Los Angeles County Employees' Retirement Association recommended the fund keep its equity allocation at 50% to 60%.
Some fund officials had wondered whether the current 58% target allocation should be lowered to reduce the plan's downside risk.
However, the study by Frank Russell, the fund's consultant, said lowering the equity ratio probably would not meet yearly interest rate assumptions over the longer term and would result in forcing the pension fund to increase contribution levels. The typical large public fund has a 53% equity exposure, the Russell report said.
The staff intends to discuss the issue further.
OLYMPIA, Wash. - The Washington State Investment Board will launch a defined contribution plan for teachers in July, said John Lynch, attorney and contract specialist.
Teachers hired after that date will be enrolled automatically in the new plan.
The defined benefit plan will continue for existing employees only, although participants may transfer to the new plan; as an incentive, those who switch by Jan. 1, 1998, will get a 20% "bonus" employer contribution.
ROCKVILLE, Md. - The $1.1 billion Montgomery County Employees' Retirement System might shift another $20 million to $40 million into small- and midcapitalization domestic equities early next year, said Patrick Bell, senior investment officer.
The fund, which already has about $60 million invested with Kennedy Capital Management in small- and midcap stocks, has not yet decided whether to give the additional money to Kennedy or hire a new manager.
The money most probably would come from a cut in fixed income - now about 40% of the fund's total assets, he said.
SACRAMENTO, Calif. - The California Public Employees' Retirement System gained $6 billion in investment returns during the quarter ended June 30, its single largest quarterly increase in the fund's 63-year history.
The fund totaled $88.2 billion as of June 30.
Charles Valdes, chairman of the CalPERS' investment committee, said the fund returned 7.2% during the second quarter of 1995. Large allocations to domestic equities and domestic fixed income were the reasons, he said.
CalPERS had projected a return of 6.4%, said William D. Crist, board president.
ATLANTA - The $500 million Fulton County Employees' Pension Fund, Atlanta, will make a 10% allocation to foreign equities, its first to that asset class.
The fund expects to hire two mutual fund companies. Watson Wyatt Worldwide, the fund's consultant, is expected to conduct a search for the two firms within the next 60 days. Under Georgia law, the fund must invest only in passively managed foreign equities.
The pension fund will be rebalanced to fund the new allocation.
DETROIT - The $60 million defined benefit plan of Grand Trunk Western Railroad Co., dropped Munder Capital Management and Provident Investment Counsel, said James A. Brewer, manager-employee savings and subsidiary accounting.
Mr. Brewer said the plan reduced its manager lineup because a rise in benefit payments made it difficult to justify having so many managers.
Munder and Provident, which were balanced managers, ran $12 million and $10 million, respectively.
The proceeds were reallocated to the fund's two remaining balanced managers, INVESCO Capital Management and Loomis Sayles & Co., increasing their assignments to $33 million and $22 million respectively.
PHILADELPHIA - The $2.5 billion Philadelphia Municipal Pension Fund will decide in the next month whether to use new or current international stock managers to invest in two new asset classes - global bonds and emerging markets, said Joseph J. Herkness, executive director.
The fund - which has four international equity managers - has earmarked 8% of total assets to global bonds and 5% to emerging markets.
The assets have been invested in a Morgan Stanley Capital International Europe Australasia Far East Index fund with Bankers Trust Co. pending the decision.
ALBANY, N.Y. - The New York State and Local Retirement Systems, Albany, earned a total return of 8.8% for the fiscal year ended March 31.
By comparison, the median public fund cited in the Trust Universe Comparison Service returned 7.4% for the same period.
For the year ended June 30, the system earned a 17.9% return, with total assets of $68.1 billion, said New York State Comptroller H. Carl McCall, the system's sole trustee.
Mr. McCall estimates the fund grew to total assets of $71.5 billion at the end of the third quarter.
BOSTON - The $100 million Cooperative Banks Employees Retirement Association is searching for its first domestic growth manager, said Kieran M. Sullivan, vice president.
New England Pension Consultants is assisting.
Ms. Sullivan said the fund hopes to complete the search by year end.
The fund hasn't determined how much it will give the new manager.
MINNEAPOLIS - The $55 billion pension fund for General Motors Corp. and Hines Interest L.P. bought First Bank Place, a downtown Minneapolis office complex, according to a Hines spokeswoman.
The purchase price was not disclosed. Second Avenue Associates L.P. was the seller.
The office complex consists of two towers and a five-story, mixed-use building; the complex has an overall occupancy rate of 92%.
