The investment committee of the $3 billion Oklahoma Public Employees Retirement System, Oklahoma City, recommended splitting a $125 million small-cap growth portfolio between Investment Advisers and T. Rowe Price. IAI now manages the entire account.
The retirement system and IAI agreed on the reduction because of fee considerations, said Steve Edmonds, executive director, and a search was initiated. Other finalists were Fiduciary Trust, Keystone Investments and Waddell and Reed.
The proposal will be reviewed by the trustees Feb. 15.
Coopers & Lybrand L.L.P. created a risk management framework for use by financial institutions designed to set standards for controlling all types of risks, such as market, credit, operational, legal, personnel and reputation risk.
The framework, dubbed generally accepted risk principles, emphasizes the responsibilities of the board of directors, and says the greatest areas of risk are not always as quantifiable as, for example, market risk or credit risk. The framework was put together with help from U.S. and U.K. market participants and regulators.
The $237 million Society of the New York Hospital retirement plan shifted its asset mix, assigning more than 50% of its assets to new managers and entering new asset classes.
The fund's new asset allocation is 50% domestic equities, 13% foreign equities, 2% fixed income, 9% hedge funds and 26% non-traditional investments. Formerly, the fund had 86% in domestic stocks, 10% in hedge funds and 4% intermediate fixed income.
In domestic stocks, Jurika & Voyles was hired to manage $19 million in all-cap stocks; Cohen Klingenstein & Marks, $19 million in large-cap stocks. For international equities, the fund hired Brandes to run $23 million in core and emerging markets, and Genesis to run $8 million in emerging markets.
For non-traditional investments, the fund committed $15 million to AG Arb Partners; $20 million to Davidson Kempner Institutional Partners; $7 million to Keefe Associates; $5 million to Pine Street Partners; $7 million to Purchase Associates; and $7 million to the Merger Fund.
The bulk of the money for the new managers appears to have come from Neuberger & Berman, the fund's existing all-cap manager. Also, one growth stock manager, which had managed half of the fund's equities, was terminated, according to Brian Hunter, the fund's consultant. He would not identify the firm. When asked about the reduction, a spokesman for Neuberger & Berman said, ``That sounds about right.'' Neuberger & Berman will continue to run about $81 million.
The $300 million Nashville Metro Employees' Retirement Fund hired EverGreen Capital Management to manage a $15.5 million domestic equity portfolio, said Wirt McKnight, senior vice president with The Bank of Nashville, which oversees the system's investments.
EverGreen will be funded with money taken from Philadelphia Investment Management Group, which was terminated. Mr. McKnight said PIM Group did a good job, but an evaluation of EverGreen indicated that hiring it would enhance the fund's return.
An official with PIM confirmed it was terminated.
The Boettcher Foundation, Denver, has hired Thorsell, Parker Partners to manage a $20 million domestic midcap equity allocation and Ark Investment Management to manage $25 million in large-cap equities. The assets came from cash and from a domestic equity allocation managed by Nelson, Benson & Zellmer, which was terminated for performance reasons, said William Douglas, president of the $170 million fund.
No other searches are planned. Consultant Monticello Associates assisted