Texaco hires 7
Texaco Inc. added seven minority- or woman-owned managers to the roster of its $1.5 billion defined benefit plan.
Texaco officials earlier said the company would add minority-owned managers as a result of its recent settlement of a racial discrimination suit.
Hired to handle a total of $155 million are: Ariel Capital and Brown Capital for equities; and Hughes Capital, Payden & Rygel, Smith Graham and Utendahl Capital for fixed income. Although Texaco did not specifically identify a source of the assets or how much each manager will manage, a spokesman said the fund was reducing its overall equity allocation.
Also hired was Chapman Co. to invest $10 million in minority- or woman-owned businesses.
Searches were done internally and with Wilshire Associates.
S.F. eyes realty
The San Francisco City & County Employees' Retirement System may add to its real estate commitments in 1997.
The $7.5 billion fund asked its real estate separate account managers - AMB, RREEF and Metric - to present other real estate investment opportunities, which may include commingled funds. The change would not add to the fund's 8%real estate allocation; the new investments would replace existing investments as they liquidate.
The fund is in preliminary discussions with managers, and any changes are unlikely to be made before June.
PMRealty head quits
Michael T. Lutton resigned as chairman and chief executive officer of PMRealty Group. He will be replaced by an executive committee headed by Rick V. Kirk, president and chief operating officer; J. Ernest Johnson, Western division president; and James C. Gunn, Eastern division president; and other board members.
A statement from the firm said Mr. Lutton is leaving to pursue other interests in the industry.
Berea ponders alternatives
Berea College is considering more alternative investments for its $460 million endowment, said Leigh Jones, vice president of business/finance.
Hirtle, Callahan & Co., hired in December to act as a CIO for the fund, is looking at real estate equity plus venture capital, distressed securities and hedge fund commitments.
The firm also will be in charge of establishing asset allocation and monitoring manager performance, Mr. Jones said.
Mr. Jones said an overall investment plan will be presented to trustees Jan. 24.
Vermont Treasurer James Douglas wants legislation reintroduced that would stop the state's financial service providers from contributing to the state treasurer's campaign.
The legislation was part of an omnibus campaign reform bill that died last year, Mr. Douglas said. This year, the bill is expected to be introduced as stand-alone legislation.
The treasurer's office already has internal guidelines banning gifts, but the legislation would add to the crackdown on influence buying, he said.
U.K. funds up 11.1%
U.K. pension funds chalked up an average return of 11.1%in 1996, down from 1995's 19.1% according to preliminary results from WM Co.
Returns were fueled by strong equity market returns in the United Kingdom, North America and continental Europe. U.K. stocks, which comprised nearly 54%of the average U.K. pension fund portfolio at year-end 1996, returned 17.2%last year. North American stocks returned 12.5%and European stocks, 11.9% despite the sterling's 8%appreciation against the dollar and roughly 16%gain against continental European currencies.
U.K. bonds returned 7.3% index-linked gilts gained 6.2%and real estate improved 7.9% while overseas bonds lost 6.2%.
U.K. pension funds have been boosting cash as they have taken profits in rising equity markets to 5.8%of total assets from 4.5%in 1995. Cash and other investments returned 7.6%last year.
Minolta taps Putnam
Minolta Corp. retained Putnam Investments to provide investments, record keeping and administration for its $45 million 401(k) plan, according to Rod McVeigh, human resources director. Minolta will offer participants eight diversified Putnam funds. Previously Minolta used six separate mutual funds.
Berkshire County hires
The 660 million pounds ($1.13 billion) Berkshire County Council Pension Fund has hired Commercial Union Investment Management to manage a 60 million pounds bond portfolio.
The portfolio, which previously was managed internally, will be invested with a benchmark of 60%index-linked bonds, 20% overseas bonds and 20%U.K. bonds.
Hymans Robertson assisted in the search.
Fannie Mae adds 4
Federal National Mortgage Association, Washington, added four funds to its $150 million 401(k) plan, bringing the total options to 13, said Rick Kennedy, benefits coordinator.
The fund added Janus Worldwide and Janus Flexible Income Funds; the MAS Value Fund, handled by MAS Fund Distribution; and the Growth Fund run by Pilgrim, Baxter.
Fidelity is the plan's bundled provider; Fannie Mae is getting access to the new funds through Fidelity's FundsNet program.
First Brands mulls options
First Brands Corp. could add more investment options to its $50 million 401(k) plan in the second half of the year, said Kevin McDonough, manager of compensation and benefits administration.
The plan has four options: a company stock option fund, a fixed-income fund, GIC/BICs and government bonds.
It is too early to tell what types or how many funds will be added. Mr. McDonough said the plan doesn't offer enough choice for employees, and expansion will keep it competitive.
Firm picks Putnam
Evans & Sutherland Computer Corp. hired Putnam Investments to manage $6.7 million in core growth equity for its $30 million defined benefit plan.
The hiring of Putnam is a result of an ongoing review of manager performance, said Bob Morishita, human resources manager. Assets came from an existing money manager which Mr. Morishita would not identify.
James Ross of Bidart & Ross assisted.
American Century hired
Premium Standard Farms Inc. selected American Century as the new bundled service provider for the company's $3.5 million 401(k).
The firm will provide record keeping, communications and investment management.
Ten investment options will be offered.
Premium had been using Principal Financial, which also provided 10 investment options, a company spokesman said.
Laurel Capital picked
Smith Barney Consulting Group selected Laurel Capital Advisors, an affiliate of Mellon Bank, as a new manager to run a core equity portfolio for its fiduciary services program.
The portfolio stays fully invested in stocks and maintains industry and sector weightings similar to the market. It aims to outperform the S&P 500 through stock selection.
Anthony Shearer has been named chief executive officer of Mellon Trust's London-based third-party fund administration group, Premier Administration.
He succeeds Michael Short, who had joined S.G. Warburg Securities Services. Mr. Shearer previously was chief executive officer of ESI Ltd., a U.K.-based on-line price quoting and stock trading service.