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%. William M. Mercer is assisting in the study.
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.
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.
Poland, South Korea, Israel, India, Brazil and Taiwan are Foreign & Colonial Emerging Markets's six favorite markets for 1996, said CIO Arnab Banerji. All six markets offer potential returns of 20% to 40% next year, he said. Mr. Banerji said he believes emerging markets will be buoyed by a wave of liquidity that will flow to emerging markets from developed markets this year.
He said Poland's new government is committed to market reforms despite its communist heritage. Calling Poland the ``tiger of Europe,'' he said the country offers 7% annual compounded growth rates and undervalued stocks.