BOSTON - Trustees of the $1.7 billion Retirement Board of the City of Boston will review five poorly performing managers on March 28.
Some may be dropped, depending on their explanations for their performance, said Mike Travaglini, executive officer.
Mr. Travaglini wouldn't identify the managers, but said three manage domestic equities; one, fixed income; and one, international equities.
The fund earned a 24% return last year, "which at first blush looks great, but a number of other public funds did better," Mr. Travaglini said.
BOISE, Idaho - The $3.7 billion Idaho Public Employee Retirement System increased international equity to 15% of assets from 12% and reduced fixed income to 30% from 33%.
The changes resulted from an asset allocation study.
Robert Maynard, chief investment officer, said the new allocations to non-U.S. equities will be shared equally with existing managers. BEA will get emerging markets; Schroder, TCW and Rowe Price-Fleming for broad international equities accounts; and Mellon for indexing.
In addition, the fund folded real estate into U.S. equities, creating a U.S. equity allocation of 54%, up from 48%. Real estate was targeted at 6% of assets, but in reality was at 4%. The fund also allocated 1% to cash.
SEATTLE - Sirach Capital Management and Olympic Capital Management agreed to merge at the end of March.
The combination of the two Seattle firms will have approximately $7 billion under management under Sirach's name and will combine Sirach's growth equity and Olympic's value equity and fixed-income products.
Terms were not disclosed.
The staffs of each firm will remain intact. Both are affiliates of United Asset Management, which facilitated the transaction.
CHICAGO - GATX Inc. plans to add an international equity option, a domestic small-capitalization option and another domestic equity fund to its $90 million 401(k) plan, said Michael C. Smiley, assistant treasurer-corporate finance.
Officials first will look at Fidelity Investments, which provides three of the 401(k)'s five investment options and the record keeping, and its network of other mutual fund companies. But they will look outside the network if the can't find competitive portfolios.
"We want to have a group of robust options for the participants," he said. "We're not going to select anything not competitive."
He said the fund hopes to make a decision in April. Rogers, Casey & Associates is assisting.
NEW YORK - The $1.6 billion 401(k) and 401(a) plans of the Federal Reserve Employee Benefits System expect to add more investment options and hope to begin searches this summer, said Paul C. Lipson, chief investment officer.
The plans now offer three investment options, run by a number of managers.
He said a variety of new asset classes and investments are being considered.
"We've got several levels of management looking at the issues now," Mr. Lipson said.
He said officials would like to make a decision and begin searches by midyear in order to put the new options in place by the end of the year.
AUSTIN, Texas - The $46 billion Teacher Retirement System of Texas adopted a revised investment policy that increases the system's target equity range to 52% to 65%, an increase from 45% to 55% recommended in the 1992 investment policy statement. The fund reached the 55% limit last fall.
The fund's allocation to fixed income dropped, to 34%, within the new range of 20% to 40%. The investment policy statement called for a range of 30% to 50% for fixed income.
The changes were made following an asset allocation study by Watson Wyatt Worldwide.
ALBUQUERQUE, N.M. - The $165 million Albuquerque Academy endowment fund might raise its international and venture capital allocations, said Pamela G. Scanlon, investment officer.
The endowment now has about 7% of total assets in international and global equities and bonds and 2% in venture capital.
The fund plans to propose to trustees in April several recommendations on the allocations.
The Common Fund is assisting in an asset allocation study.
The Common Fund runs the fund's investments in the area; Ms. Scanlon said it is likely the fund will recommend The Common Fund be assigned new allocations.