An information-sharing agreement among more than 45 futures exchanges and futures clearinghouses is expected to be signed Friday, the Futures Industry Association said today. The agreement is an effort of an FIA task force formed following Barings PLC's derivatives losses last year. The agreement will help track common and related exchange members, which would help in efforts to prevent another Barings-like scenario from unfolding.
The Barings situation was exacerbated by the belief by officials at exchanges in Japan and Singapore that large Japanese equity futures positions on their own exchange were being offset by arbitrage positions on the other exchange.
Reps. Earl Pomeroy, D-N.D., and Nancy L. Johnson, R-Conn., today introduced a bill that would set up a federal task force to study the nation's looming retirement income crisis.
The Commission on Retirement Income Policy, made up of 18 experts, would make recommendations by the end of next year. It would examine where older Americans get their money, including from Social Security and private savings, how much younger individuals are saving for their retirement, as well as tax policy and other federal incentives to help individuals save for their old age.
The bill is expected to pass Congress because the legislation has broad bipartisan support, and the commission is expected to cost little to set up.
The PBGC's single-employer plan deficit dropped nearly 74% to $315 million in 1995, the lowest deficit level since 1981, the agency reported today. The drop was attributed mostly to record investment earnings and no major plan terminations. The PBGC's investments produced nearly $2 billion in income in 1995, the largest gain the agency has ever seen.
At the end of 1995, the agency had about $10.4 billion in assets and about $10.7 billion in liabilities in its single-employer program. The multiemployer program's surplus of $192 million last year actually dropped 2.5% from 1994.
Officials at the $1.1 billion Houston Police Retirement System expect to hire by the end of April a large-cap value manager, a growth manager and an opportunistic equity manager, said John E. Lawson, executive director. Responses to RFPs are being reviewed now, he said. The three managers will replace one or more core equity managers the board will identify later.
The board also will decide how much each new manager will be allocated.
RogersCasey is assisting.
Fidelity Investments is developing five lifecycle funds - which will invest in Fidelity mutual funds - for introduction next summer.
The new Lifepath funds will be age-weighted and designed to meet the rough retirement dates of plan investors of all ages, said Robert Reynolds, president of Fidelity Investments Institutional Retirement Group.
The series of portfolios will be diversified by asset class and portfolio manager by investing in varying proportions in the Fidelity family of mutual funds.
Trustees of the $5.4 billion Police and Firemen's Disability and Pension Fund of Ohio, Columbus, will begin using an independent internal auditor, as recommended by Ohio State Auditor Jim Petro.
The fund performs an annual financial audit of its investments, but that doesn't take into account the day-to-day operations of the fund, said Henry Helling, executive director. The internal audit would determine if the proper financial controls are in place, and that the fund is in compliance with government reporting standards.
The trustees also approved Mr. Petro's recommendation to eliminate direct credit card billing for board members; establish a formal RFP process with a ``Buy Ohio'' component; and implement a trustee travel policy that requires approval at a public meeting.
The 220 billion guilder ($133 billion) Stichting Pensioenfonds ABP hired ABN-AMRO Asset Management to invest an undisclosed sum in emerging markets equities, said CIO Jean Frijns. The portfolio largely will be invested in Pacific Basin stocks. ABN-AMRO is the first manager to invest in that asset class for the Heerlen, Netherlands-based pension fund for Dutch civil service employees. The move is part of the giant fund's international diversification effort.
Trustees of the $700 million City of Hartford (Conn.) Municipal Employees' Retirement Fund hired Connecticut General Pension Services to conduct an asset allocation study for the fund, said Deputy Treasurer Kathleen Palm. The study will be conducted simultaneously with a five-year experience study of the fund's liabilities by Hooker & Holcombe, the fund's actuary, she said.
The fund's asset allocation is about 60% domestic equities and 40% domestic fixed income. But the fund might invest up to 5% of total assets in international equity and real estate, said Ms. Palm