The Navy-Marine Corps Relief Society, Arlington, Va., will discuss at its Aug. 27 board meeting equitizing a $10 million market neutral portfolio run by Numeric Investors. Jim Koltes, chairman of the asset allocation committee for the $150 million pension fund, said Numeric still would manage the portfolio, but would overlay S&P 500 futures on top of the plain-vanilla market neutral portfolio to mimic the stock market.
Mr. Koltes said Numeric has produced ``absolutely spectacular'' returns of 17.3% compound annually for the four years ended June 30, compared with 16.5% for the S&P 500. Still, fund officials are examining increasing the equity exposure in the Numeric portfolio to hike returns further, while accepting more risk. The Navy-Marine Corps fund will study using a computerized model to determine how much of this portfolio should be equitized, Mr. Koltes said. No changes are expected in a $5 million market neutral portfolio run by Weiss Associates.
The Bricklayer & Trowel Trades International Pension Fund, Washington, plans to add a fifth equity manager and drop one of four bond managers for the $850 million fund, said David Stupar, executive director. The plans follow an asset allocation study and manager review.
The fund uses Ark Asset Management and Lazard Freres for both stocks and bonds. Other stock managers are RCM Capital and Columbia Partners. Nicholas-Applegate and Miller Anderson & Sherrerd are the other bond managers. Mr. Stupar declined to say which bond manager might be dropped. The fund hopes to make the changes by some time next month.
Marco Consulting Group is assisting.