The 23 trillion Pension Welfare Service Corp., Tokyo, has hired three investment advisers to manage an undisclosed amount of the public fund's assets: Goldman Sachs, Morgan Stanley and the investment management arm of the Industrial Bank of Japan.
Kunio Mizuta, the PWSC's general manager, said Goldman Sachs was tapped to manage Japanese and global equities, while Morgan Stanley and IBJ were hired to manage global equity accounts. The PWSC also is in "active negotiations with other investment advisers," Mr. Mizuta said. He wouldn't identify the firms.
The PWSC also is considering removing much of the 5 trillion of assets now in insurance companies' general accounts if insurers lower their guaranteed yield to 2.5% from the current 4.5% on general account assets. Insurers hope to make that yield reduction April 1 if it receives government approval.
PWSC assets removed from insurers' general accounts would likely be "reinvested in the market - in stocks and bonds," said Mr. Mizuta. He said if the fund moves the money, it would like to reallocate the assets to "investment advisory firms, trust banks and our own in-house activities in fixed income."
NORTH YORK, Ontario - The C$55 million (U.S.$40 million) Acklands Ltd. pension fund may reduce its equity allocation from the current 70%, said Frank M. Munsters, vice president.
He expects the investment committee to decide this month 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.
The U.S. $60 billion Government of Singapore Investment Corp. hired 18 external fund managers operating in Singapore.
Ng Kok Song, deputy managing director, wouldn't name the new managers. He did say, however, all were Asian equity mandates for a total of about U.S. $1 billion.
The moves are part of the government's broad program announced in 1994 to encourage managers to open offices in Singapore. Mr. Ng said the government group is prepared to offer more money and mandates outside Asia to the Singapore managers if they stay on par with their international peers as well as the government group itself. Over the next three to five years, managers with "demonstrated competence" could get "several billion dollars more" from the government group, said Mr. Ng.
EDINBURGH - U.K. pension funds are less mature than anecdotal evidence would suggest, according to a new survey by The WM Co., Edinburgh.
The survey focuses on the extent to which U.K. pension funds will increase their holdings in fixed income and will pursue other risk-averse investment strategies.
WM found most U.K. funds had less than 60% of total pension liabilities related to retirees and deferred vested workers. The survey was taken from a sample of 154 funds valued at 150 billion ($230 billion), representing 40% of U.K. pension assets and 25% of U.K. pension plans.
Chris Boston, a WM director, said in a release: "The common view is that most pension funds are significantly mature. In reality, however, even the super-mature fund sector - defined in the survey as those where more than 60% of their members' total liabilities are in respect of existing or deferred pensioners - comprises only 33 funds, or 21% of our sample."
ARNHEM, The Netherlands - The 820 million Dutch guilder ($492 million) Stichting Heidemij Pensioeonfonds, Arnhem, has restructured its international equity portfolios.
The Dutch engineers fund has terminated an unnamed international equity manager for a 300 million guilder portfolio. Ad van Hulst, manager, pension fund, said fund officials had sought a more specialized approach and improved performance.
The fund hired ING Investment Management, Amsterdam, to run a 125 million guilder international stock portfolio, he said. In addition, the fund allocated the remaining assets between existing managers AMEV Levensverzekering NV, Utrecht, and Robeco Group, Rotterdam, which run global equities, bonds and real estate for the fund.
The engineers fund also made its first explicit allocation to emerging markets equities, channelling 10% of its 328 million guilder equity exposure to the area. Robeco is managing that portfolio. Previously, emerging markets stocks were part of overall international equities portfolios.
Originally, fund officials had contemplated hiring managers for regional mandates but they decided to leave tactical asset allocation decisions to the managers, Mr. van Hulst explained.
No consultant was used.