SACRAMENTO, Calif. - The $2 billion Sacramento County Employees' Retirement System has made some fine-tuning as part of its recently completed biennial review of its $440 million of fixed-income investments, said Christopher Ailman, chief investment officer.
The fund reduced by $50 million what was a $95 million short-term portfolio managed by Payden & Rygel.
As a result, Lincoln Capital, which manages a $215 million indexed bond portfolio, will receive $35 million, and Bradford & Marzec, which runs a $140 million core active fixed-income portfolio, will get another $15 million.
The moves are aimed at rebalancing aggregate fixed-income portfolio duration and credit risk so it better approximates the Salomon Broad Investment Grade Index, said Mr. Ailman.
HERLEEN, The Netherlands - The $100.7 billion Algemeen Burgerlijk Pensioenfonds, Herleen, made a private placement investment of $100 million in the Simon Property Group, a public real estate investment trust.
ABP will receive 4 million convertible preferred shares; they represent about 6.5% of all voting shares in the REIT.
The proceeds will be used by Simon to pay down an existing credit facility.
BROCKTON, Mass. - The $75 million City of Brockton (Mass.) Contributory Retirement System might conduct a search for a large-capitalization equity manager in 1996, pending the results of an asset-liability and asset allocation study by its consultant, the Hannah Group.
The studies should be completed by Jan. 1.
Requests for proposals went out for a midcap equity manager in the summer, and some candidates were reviewed before the search was called off, according to Richard Zaccaro, consultant at Hannah Group.
"After further analysis it was deemed there was really underexposure to large cap, not midcap," he said.Battelle Memorial Institute
may hike international
COLUMBUS, Ohio - The $850 million Battelle Memorial Institute pension fund may raise its international allocation to double digits, said Damian D. Sung, director-investment management.
The fund is considering an allocation of 10% - up from the current 6% - all in equities.
Bankers Trust now manages the entire international allocation in a passive portfolio.
He said the fund hasn't decided whether to place the new allocation in active or passive portfolios. Assets could come from cash, although it hasn't been decided.
CHARLOTTE, N.C. - The $143 million Charlotte Firefighters' Retirement System reduced its allocation to real estate by 2 percentage points to 3%.
Small-cap domestic equity will, in turn, increase 1.5 percentage points, to 3.75%; small-cap international equity will increase 0.5 percentage points to 2.5%, said fund administrator Robb Hubbs.
Assets are coming from a distribution from real estate manager NationsBank.
No manager changes will be made as a result of the redistribution, he said.
GRAND RAPIDS, Mich. - The $200 million defined benefit plan of Christian Schools International doubled its real estate allocation to 6%, said Gerald Knol, manager-trust investments.
The fund will hire a new manager; existing realty managers Aeltus Investment Management and JMB Institutional Realty won't be affected by the change.
NEW YORK - Johnson & Higgins might conduct an asset allocation study on its $70 million in non-qualified benefit plans in the next two months, according to Terry Lett, cash manager.
The plans are invested in domestic stocks, international stocks and municipal bonds.
Consultant A. Foster Higgins, a subsidiary of Johnson & Higgins, would be involved in the process. It has not been determined whether an outside consultant also would be used.
No changes are planned for the qualified plans, which include a $560 million savings plan and a $340 million pension plan.
LOS ANGELES - SunAmerica Life Insurance has become the first carrier to receive a AAA rating from both Moody's Investors Service and Standard & Poor's Corp. for a credit enhanced guaranteed investment contract.
Capital Markets Assurance issued a surety bond to insure a $200 million separate account GIC for SunAmerica. Without the credit enhancement, SunAmerica's claims-paying rating is AA From S&P and A2 from Moody's.
