NEW YORK - Trustees of the $26 billion New York City Teachers' Retirement System suspended a $50 million commitment to HSBC Asset Management for emerging markets because of the resignation of the portfolio manager that would oversee the account, said Melvyn Aaronson, a board member.
The board will wait before funding the commitment, made in February, said Mr. Aaronson.
A telephone call to HSBC seeking the identity of the portfolio manager was not returned.
In the interim, the $50 million will be divided among other emerging markets managers hired in February. Schroder Capital Management International, Morgan Stanley Asset Management and Genesis Investment Management Ltd. will receive $92 million each, up from $75 million.
In addition, a $174 million allocation to Bankers Trust Co., which was hired at the same time for an international index fund, was reduced by $1 million.
SANTA ROSA, Calif. - The $530 million Sonoma County Employees' Retirement System is conducting a major asset allocation and liability study, said Robert L. Nissan, assistant retirement administrator.
SEI Corp. is assisting in the study, the first ever conducted by the system using a consultant, he said. Mr. Nissan expects the study to be finished in May, when it will be presented to the board.
The study will look at the entire plan, including investment allocations and managers, and review the investment policy and make recommendations. Among other areas, it will look at entering international investments.
The fund, which has six managers, has a current allocation of 55% equities, 35% fixed income, 7% tactical asset allocation and 3% cash.Foundation may diversify into alternatives
HOUSTON - The more than $100 million St. Luke's Hospital Foundation may diversify into alternative investments, including real estate and venture capital, said Robert Jones, assistant treasurer.
The foundation is considering having its consultant, LCG Associates, assist in a study.
Mr. Jones said he could take a proposal to the finance committee this summer, Mr. Jones said.
The fund currently has 87% of its assets run by two balanced managers split about evenly between domestic stocks and bonds and 13% in an international equities mutual fund.
ATLANTA - Despite the rush to index funds over the past five years, about 79% of active equity managers outperformed the Standard & Poor's 500 Stock during the five years ended Dec. 31, according to the INDATA investment management universe.
"People who were in index funds over that period of time were doing themselves a disservice," said Atlanta consultant W.T. Kennedy.
Still, only 40% of active equity managers outperformed the strong equity market in 1995. The INDATA universe represents nearly 644 actively managed institutional equity portfolios with about $271.5 billion in total assets.
AUSTIN, Texas - The Texas Pension Review Board plans to step up pressure on several public pension funds to adhere to state-mandated public plan reporting requirements.
Public plans are required to report detailed financial and investment reports to the board, which plans to take a more active role in requiring system compliance, according to Rita Horwitz, executive director. About 20 public funds, mostly smaller ones, are not in compliance, Ms. Horwitz said.
The state has about 300 public pension funds. Among those not in compliance are the Crockett Firemen's Relief and Retirement Fund, the Dallas Area Rapid Transit Retirement Plan, the Weslaco Firemen's Relief and Retirement Fund and the San Benito Firemens Pension Fund.
CLEVELAND - American Greetings Corp. added three investment choices from bundled provider Vanguard Group to its $430 million 401(k), said Michael P. Burns, manager of retirement plans.
American Greetings added Vanguard's Wellesley Income, Windsor II and World funds, American Greetings' first international option, Mr. Burns said.
The 401(k) plan now has nine options.
HARTFORD, Conn. - Phoenix Home Life Mutual Insurance and Aberdeen Trust are forming a joint international money management venture. As part of the agreement, Phoenix agreed to buy a 15% interest in Aberdeen Trust for $37.5 million.
The joint venture, Phoenix Aberdeen International Advisors, will manage international assets for individuals and institutions in the United States and the United Kingdom.
In the United States, Phoenix Duff & Phelps will market international products managed by Aberdeen Trust. In the United Kingdom, Aberdeen will distribute U.S. funds managed by Phoenix Duff & Phelps.
SAN DIEGO - The $1.5 billion San Diego City Employees' Retirement System intends to send out a request for information in the next few months in a search for a real estate consultant.
The contract of incumbent Institutional Property Consultants expires this year.
AUSTIN, Texas - The approximately $13 billion Texas Permanent School Fund expects to raise its allocation to U.S. equities by 15 percentage points to 58% over the next two years or so, said Adrian Gentry, senior equities portfolio manager.
The allocation would be for large-capitalization stocks, to be managed in-house.
U.S. fixed-income holdings would be reduced to fund the increased equity exposure.
LINCOLNSHIRE, Ill. - The number of employer-matched defined contribution plans continued to rise last year, according to a new survey by Hewitt Associates. In 1995, 89% of the 681 employers surveyed offered matched savings plans, compared with 84% in 1990.
Meanwhile, the number of defined benefit plans dropped slightly to 84% in 1995 from 86% in 1990.
Also, the number of investment options employers offer for employee contributions to defined contribution plans increased. The percentage of 401(k) plans offering more than five options burgeoned to 65%, up from just 17% five years earlier. Investment choices for employer contributions to deferred profit-sharing plans also increased dramatically. The number of plans offering five or more options for employer contributions increased to 50% in 1995 from 16% in 1990.
INDIANAPOLIS - Indianapolis Power & Light Co. is using Merrill Lynch Consults' Asset Information and Performance Service to review the asset allocation of its $200 million defined benefit plan, said Max Califar, vice president-human resources.
AIMS provides investment management performance reviews and manager peer group analysis for use by the pension committee.
Changes to the asset allocation could follow. This is the first time the pension fund has used outside consulting services.
TOLEDO, Ohio - TRINOVA Corp. may add lifestyle funds later this year to the 11 options offered in its more than $500 million defined contribution plan, said Patricia M. Krakos, director of benefits planning.
TRINOVA is considering the addition of a series of risk and age-weighted asset allocation funds, Ms. Krakos said at a Conference Board meeting.
TRINOVA also is expanding to all U.S. locations a modified version of a pilot financial planning program it tested with a focus group in 1995. All employees will be offered a two-hour financial planning seminar, conducted by the Rouse Co., that provides investment education and custom-tailored retirement modeling. For an additional $25, employees can purchase software to help with goal-setting and asset allocation.
If successful, the program may be expanded in 1997, Ms. Krakos said.
TORONTO - Canadian Press will separate its C$40 million (U.S. $29.6 million) pension fund into separate union and non-union plans, said Don H. Jarrett, vice president-finance and administration.
The Canadian Media Guild doesn't have to approve the separation, but the company is negotiating with the union over related issues.
He expects the plans to be divided this spring; then, the two existing money managers will be reviewed. Elliot & Page runs domestic stocks and bonds, while McDonald Investment Management runs foreign equities.
CONCORD, Mass. - The $33 million Concord Contributory Retirement system has applied for state regulatory approvals to shift part of its assets into Frank Russell Trust's international and Equity II funds, said Grace Jones, retirement administrator.
The system currently has $3.8 million in a Russell TAA fund and $2.5 million in cash, which would be used to fund the changes.
"We want more diversification, and international seems to be the place where a lot of people are going," Ms. Jones said.
She said the TAA fund is not "doing as well as it should."
WASHINGTON - Four pension sponsors joined the Council of Institutional Investors as full voting members, while six dropped out.
According to the council, new members are B.F. Goodrich Co., Unocal Corp., Kern County Employees' Retirement Association and Ohio Public Employees' Retirement System.
Those dropping out are 1199 Health Care Employees Pension Fund, Massachusetts Pension Reserves Investment Management Board, Montana Board of Investments, New Mexico Public Employees Retirement Association, San Luis Obispo County Pension Trust and Steelworkers, National Headquarters Staff Pension Trust Fund.
The council now has 98 members, consisting of 50 public funds, 24 corporate funds, 23 Taft-Hartley funds, and one foundation.