PRINEVILLE, Ore. - The $125 million Les Schwab Tire Centers profit-sharing fund is considering a move to outside management for fixed income, said Jim Goad, manager-finance.
The fund runs about $2 million internally in fixed income, but could increase its allocation as part of the consideration to hire an outside manager.
The pension board could make a decision next month on the move and start a search for a manager.
R.V. Kuhns & Associates is assisting in the study.
BOSTON - The $8.5 billion Massachusetts State Teachers' and Employees' Retirement System and the $6.5 billion Massachusetts Pension Reserves Investment Management Board, both of Boston, will issue separate requests for proposals in early December for new global custodians.
Both funds' custodial contracts expire July 1, said Collette Chilton, MASTERS' chief investment officer.
MASTERS' current global custodian is Mellon; PRIM's is State Street Bank, said Scott Henderson, PRIM general counsel.
The incumbents may respond to the RFPs.
While the RFPs are being issued simultaneously, the funds may end up with different custodians, the two officials said.
Both funds hope to have the new hires in place by the end of the first quarter of 1996.
INDEPENDENCE, Ohio - The $385 million pension fund of Centerior Energy Corp. changed Wells Fargo Nikko's assignment as part of a restructuring of its equity allocation, said Gregory A. Tropf, senior investment analyst.
The manager will run a $27 million enhanced Standard & Poor's 500 stock index fund.
Assets came from dropping a $15 million Wells Fargo Nikko growth equity portfolio, which replicated the S&P/BARRA Growth Index, and from other managers whose assignments are under review.
Summit Strategies Group assisted in the changes.
LOS ANGELES - The $18 billion Los Angeles County Employees' Retirement Association has decided to drop Mitchell Hutchins Asset Management following the resignation of portfolio manager Dorik Rozanski, who ran the pension fund's portfolio at Mitchell Hutchins.
LACERA will take about $100 million from a small-cap value equity portfolio with the firm and put it into a commingled Russell 2000 value index fund managed by Bankers Trust.
Officials at the firm did not return calls for comment.
But in a letter to LACERA officials, Margo N. Alexander, president and CEO at Mitchell Hutchins, said she was "shocked and disappointed" by the resignation of Mr. Rozanski.
AUGUSTA, Maine - Voters in Maine passed an amendment to the state's constitution mandating the Maine State Retirement System be fully funded in 31 years.
The vote is not expected to affect the $3.9 billion fund's requirements, because the mandate matches the current funding schedule, said Claude Perrier, executive director.
But the amendment prohibits the creation of unfunded liabilities, preventing erosion in the system's funding through either deferrals or the creation of new unfunded liabilities in the future, he said.
The amendment now awaits the governor's signature.
WASHINGTON - The PBGC has taken over the UPI Guild Employees Retirement Income Plan, underfunded by $5 million.
The Washington-based news agency's Guild Employees Retirement Income Plan covered about 1,300 former news staff, including 350 retirees.
The plan had $18 million in assets and $23 million in liabilities.
Most participants will not get full retirement benefits, PBGC officials said in a statement, because the guild plan's 1989 benefit increase was only partially guaranteed.
The company filed for bankruptcy in August 1991. In October 1994, the Pension Benefit Guaranty Corp. took over UPI's plan for management staff, which at the time was underfunded by $9 million.
HOUSTON - Officials at the $750 million Houston Municipal Employees Retirement Fund are evaluating responses to an RFP for a small-cap growth equity manager.
The system will place about $40 million with one or more managers following interviews with the finalists in December.
The search is being conducted internally.
MONTREAL - A group of pensioners of the C$7.5 billion Canadian National Railway Co. pension fund filed a claim in the Ontario Court seeking C$175 million in payment to the fund in connection with allegedly improper contribution holidays taken by the railroad, according to the prospectus for the stock offering to privatize the company.
The prospectus notes the company's "intention to vigorously defend" itself against the claim by the National Council of CN Pensioners' Associations Inc.
The pension fund has a C$322 million unfunded liability. The company's pension cost in 1994 was C$96 million.
SPRINGFIELD, Ill. - The $13.1 billion Illinois Teachers' Retirement System is considering increasing its venture capital allocation, said Robert Daniels, executive director.
The system's board next month will discuss making the potential addition in the new year.
The board hasn't determined yet by how much it will increase the allocation or in what particular areas. The system has 1.2% of its fund in venture capital.
Callan Associates is assisting.
MINNEAPOLIS - Returns in pooled stable value funds held steady in the third quarter with an average return of 1.6% for the quarter ended Sept. 30, according to the Heuler Analytics universe of pooled GIC funds, the same as during the second quarter.
For the 12-month period, pooled GIC funds returned an average of 6.5%, up slightly from the 12-month average of 6.43% reported at the end of the second quarter.
The Heuler universe consists of bank pooled funds totaling more than $23 billion in stable value assets.
LONDON - Southeast Asia might have some of the most promising markets over the next 12 months, said Paul Hopkins, chief investment officer for IDS International, London.
Two years after the huge runup in Southeast Asian stocks, "valuations have returned to more reasonable levels. At the same time, many of the economies of the region continue to show good growth." he said.
His firm recently moved to a 14% weighting for EAFE portfolios from what was a low point of 9% last year.
Mr. Hopkins likes Singapore, and on a longer-term view, Thailand and Indonesia's markets. Although the latter two "have been weak recently," the firm would view any continued short-term profit-taking "as a buying opportunity," he said.
BOSTON - Small-cap stocks will underperform large caps during the next 12 months, according to a report from H.C. Wainwright Economics in Boston.
One key reason is the yield spread between corporate and municipal bonds, an indicator of tax-rate expectations, has declined. Contrary to popular belief, that's a bearish sign for small-cap stocks.
The firm's return forecast for stocks in general vs. cash is only "slightly favorable."
Within equities, the firm favors stable earnings growth companies over cyclicals and stocks with high foreign exposure over purely domestic stocks.