Hewitt Associates terminated relationships with ``a handful'' of midsized defined contribution plan record-keeping clients that were ``no longer a good fit'' with Hewitt's record-keeping system, said Monica Gallagher, a Hewitt spokeswoman. She wouldn't identify the firms; they apparently required too many customized services. Hewitt will concentrate on customized record keeping for large clients and on a standardized, turnkey plan for small clients. Ms. Gallagher said Hewitt offered consulting and vendor search services to the terminated clients and helped with transition to new service arrangements.
The median PIPER managed equity account outperformed the S&P 500 in the third quarter, returning 8.5% vs. the S&P's 8%. For the year ended Sept. 30, the median account returned 26.4% and the index, 29.7%.
In fixed income, the median managed account matched the Salomon Broad index, with 1.9% for the quarter; for the year, the median account returned 12.7%, vs. 14.1% for the index.
The median international equity manager outperformed the EAFE index during the third quarter, 5.4% to 4.3%, but lagged the index for the year ended Sept. 30 - with 5.1% for the median manager and 6.1% for the index.
Emerging markets median managers underperformed other international equity managers, with 0.2% for the quarter and -14.8% for the 12 months.
Trustees of the $110 million City of Fall River (Mass.) Contributory Retirement System are considering the placement of a small portion of assets in international investments, said Florence Pines, executive secretary. A decision is expected by year end. The fund now has its assets in balanced funds with Freedom Capital and BayBanks.
Morgan Stanley Capital International today introduced an equity index covering the stocks of 24 Chinese companies, of which 13 are listed in China, eight in Hong Kong and three in New York.
The index represents about 60% of the shares of Chinese companies available to investors outside of China. MSCI also provides coverage of an additional 17 stocks that are not in the index.
James Burton, CEO of the California Public Employees' Retirement System, Sacramento, suggested today that corporate directors be limited to sitting on no more than two boards - because of time and resource constraints. He also said there's not enough proxy information on directors for shareholders to make informed voting choices.
Mr. Burton made his comments at a conference sponsored by the Investor Responsibility Research Center.
Trading began today in futures and options on the S&P 500/BARRA Growth and S&P 500/BARRA Value Indexes on the Chicago Mercantile Exchange and the Chicago Board Options Exchange. The CME offers trading in futures and futures options on the indexes, while the CBOE handles futures.
The contracts are getting attention from investors using tactical asset allocation strategies, who will be able to adjust portfolios using style bets.
John Hancock Mutual has acquired the remaining 39% of JHM Capital Management, making the fixed-income manager a wholly owned subsidiary.
John Hancock acquired JHM from JHM Capital Corp., the firm's previous holding company; terms weren't disclosed. The firm will operate under its current management.