The C$110 million (U.S. $81 million) Participating Cooperatives of Ontario Trusteed Pension Plan, Mississauga, is looking at ways to increase its international equity allocation, including the use of derivatives, said Robert E. Bethune, investment coordinator. He said the multiemployer pension fund for agricultural-related cooperatives won't decide until about June whether it will make an additional allocation.
Whittacat Consulting Associates is assisting in the study.
``We're beginning to study the issues, and it will take awhile to come to fruition,'' he said. Once it does, ``then it becomes a timing issue'' on when to liquidate assets and make new investments.
``It's a tricky issue because we have these restrictions'' on international investments.
The fund is near the 20% international limit, having an 18% to 19% allocation, all in U.S. equities. He said the plan will consider using derivatives to increase its exposure.
The C$2.4 billion (U.S. $1.8 billion) pension plan of the Colleges of Applied Arts and Technology of Ontario, Mississauga, hired its first money managers, said Ron Martin, chairman of the board of trustees.
GE Investments and Martin Currie each will manage C$240 million in global equities. In Canadian equities, Goodman & Co. received C$212 million; Bolton-Tremlay got C$70 million; and Beutel Goodman, Laketon Investment and Gryphon were awarded C$232 million each.
For actively managed Canadian fixed income, the fund hired Baker Gilmore and Elliott & Page for C$244 million each. The fund also hired TAL for C$325 million in passively managed Canadian fixed income, and Laketon for C$50 million in supranational government agency investments. The fund will manage in-house about C$100 million of non-marketable Ontario debentures.
Until last December, assets of the CAAT fund had been part of the Ontario Municipal Employees Retirement System. After CAAT's assets were separated, the fund had an agreement that Ontario