The Oregon Investment Council, which oversees the $20 billion Oregon Public Employes' Retirement System, terminated two international equity managers running more than $500 million, said Fred McDonnal, executive director.
Terminated were Batterymarch Financial Management, which ran $271 million, and Philippe Investment Management, which ran about $256 million, Mr. McDonnal said.
Also, the council doubled its allocation to Nicholas-Applegate to $400 million in domestic equities.
The retirement system also has asked its consultants to begin a search for both small-cap and growth equity managers. As a result of the changes, the systems new allocations are: 66.3% equities, from 71.5%; 24.5% fixed income, from 21.5%; 7% real estate, from 5.5%, and 2.2% cash, from 1.5%.
Gerard Drummond, chairman of the council, there may be some more terminations of non-U.S. equity managers.
Trustees of the $20.1 billion Virginia Retirement System approved investing up to $50 million in a publicly traded REIT managed by CRA Real Estate Securities. Trustees also gave the green light for the pension fund to spend $2.75 million on buying seven acres of land and building warehouses adjoining its 1.1 million-square-foot warehouse in Nashville.
And, they also authorized the fund to spend $26.4 million to purchase a 660-unit garden apartment complex in Fairfield, Ohio.
The money for the new investments will come from reserves, said Bill Sullivan, a fund spokesman.
The investments are part of an effort by VRS to hike its investments in real estate to reach its 9% target allocation from the current 6%.
Trustees also authorized the fund to spend up to $80,000 on hiring a consultant to study fees paid to investment advisers.
Vince Martin, president and founder of Westmark Realty Advisors, resigned to spend time with his family and to pursue personal interests, according to a letter sent to the firm's clients.
Dick Clotfelter, chairman and chief executive officer of Westmark, will assume Mr. Martin's duties, according to the letter from James Didion, chairman of CB Commercial, which bought Westmark earlier this year.
Telephone calls to Mr. Martin were not returned.
Mr. Clotfelter was traveling.
U.S. pension funds' average allocation to domestic equities climbed to 42% of assets from 40.1% a year earlier, while their average holdings of U.S. bonds rose to 35.6% from 34.1% in 1994, a Greenwich Associates survey found.
International investments - including stocks and bonds - fell to 10.6% from 11.1% a year ago. Also declining were: investments in equity real estate, to 3.4% this year from 3.8%; real estate mortgages, to 2.8% from 3.2%; GICs, to 0.3% from 0.7%; and short-term securities/cash, to 3.1% from 3.3%.
Corporate and public funds had significantly different allocations to domestic securities. While the average corporate fund had a 51% allocation to U.S. stocks and a 20.1% allotment to U.S. bonds, public funds averaged 42% in stocks and 35.6% in bonds.
The $4 billion Rhode Island Retirement Systems hired four firms as part of its new emerging managers program. The fund hired ValueQuest for contrarian value equity; HLM Management for emerging company equities; Taplin Canida & Habacht for investment-grade intermediate term domestic fixed income; and Penn Capital Management for high-yield bonds.
The four firms will receive $15 million each. The assets came from $80 million previously allocated to emerging managers.
Wilshire Associates assisted.
Net investment by U.K. institutions hit 13.8 billion ($21.5 billion) in the third quarter, the highest level since the third quarter of 1994, the U.K.'s Central Statistical Office announced today.
Institutional investors made a record net investment in overseas securities of 4.8 billion in the third quarter, following low levels in the previous five quarters. Investments in short-term assets rose 3.8 billion.
British pension fund net investments totaled 1.3 billion, down slightly from 1.4 billion in the second quarter. Investments in overseas securities reached 1.5 billion, the highest level since the third quarter of 1991, following six quarters of disinvestment.
The Federal Retirement Thrift Investment Board renewed a three-year contract with Wells Fargo Institutional Trust to manage both the $10.8 billion domestic stock index fund and the $2.1 billion domestic fixed-income index fund for the $34 billion Thrift Savings Plan for federal government employees. The board also renewed a contract with Metropolitan Life as the annuity provider for the thrift savings plan.
The Personnel Group of America, Charlotte, N.C., hired Scudder, Stevens & Clark Inc., New York, to manage its new 401(k) plan.
Scudder will provide a bundled service for the plan, including daily valued record keeping, trust and administration, employee communications and education and investment management. Five diversified investment options, all managed by Scudder, are available for employee investment.
The plan is starting with $4 million. William M. Mercer assisted.
The $3 billion Oklahoma Teachers' Retirement System terminated its relationship with Mitchell Hutchins Asset Management and transferred the $150 million small-cap value portfolio to an index fund at Bankers Trust.
Jo Witt, director investments for the Oklahoma fund, said the assets will remain with Bankers until after the system's consultant search is completed during the first quarter.