The C$55 million Acklands Ltd. pension fund, North York, Ontario, may reduce its equity allocation from the current 70%, said Frank M. Munsters, vice president. He expects the investment committee to decide in January whether to cut the equity allocation to 60%.
He said the fund wants to revert to its normal target and expects the allocation to be shifting among the fund's existing managers Beutel Goodman, which runs equities, and Phillips Hager & North and Knight Bain Seath & Holbrook, which both run balanced portfolios.
William M. Mercer is assisting in the study.
Ferrell Capital Management has unveiled a new index that tracks the performance of 29 non-traditional fixed-income managers in a range of directional and arbitrage global fixed-income strategies.
These include leveraged U.S. government bond trading, international bond trading, relative value trading, convertible arbitrage strategies and spread strategies.
The performance index offers a way to compare specifically trading oriented fixed-income managers (those who take long or short positions or arbitrage yield curves).
The compound annual return of the new Ferrell Fixed Income Index between Jan. 1, 1987, and Sept. 30, 1995, was 19.3%, vs. 10.8% for the J.P. Morgan World Bond Index.
One-third of banks do not consider themselves successful in the mutual fund business, but none plans to withdraw from it, according to a study released today by Deloitte & Touche. In fact, more than three quarters of 100 banks surveyed intend to increase their future investment in the mutual fund business.
Of the banks surveyed, 29% have more than $10 billion in mutual fund assets; 61% have $1 billion to $10 billion; and 10% have assets of less than $1 billion. Some 53% offer proprietary funds and 94% offer third-party funds.
Among successful banks, mutual fund sales were the most frequently cited measurement of success (89%) while only 24% of the unsuccessful banks cited sales.
Successful banks placed greater emphasis on sales than profitability, demonstrating their willingness to make the necessary investment to grow the business.