Lincoln Telecommunications, Lincoln, Neb., is reviewing the asset allocation of its $220 million defined benefit plan, said Michael J. Talvin, vice president and treasurer.
The review will look at U.S. equities investments, he said. Mr. Talvin would not say when the study is scheduled to be finished or speculate on changes to follow the review. Bankers Trust and Performance Analytics are assisting fund officials.
The plan now has 38.6% in domestic equities managed by DePrince, Race & Zollo, Bankers Trust, Driehaus Capital, Newbold's Asset Management and STI Capital Management, according to Nelson's Directory of Plan Sponsors.
Longshoremen ILA STA-ILA Pension Trust Fund, Baltimore, is conducting an asset allocation study.
The annual review of the $500 million plan is expected to take three months.
``We are looking over what we have'' and evaluating options, said Charles W. Springer, co-administrator. Changes will be made pending the recommendations of John Statts of Investment Performance Services, the plan's consultant.
Birmingham (Mich.) Employees' Retirement System might increase the amount it invests in equities, said Thelma Grabner, city treasurer.
The $69.5 million pension fund now invests 50% of assets in stocks and has a ceiling of 55%.
The recent market boom in the stock market prompted the investment committee to consider the increase, she said. A decision could be made in March.
California state Controller Kathleen Connell said the California State Teachers' Retirement System's investment return was 301 basis points less than sister fund CalPERS for 1996, which amounts to an opportunity loss of $1.8 billion. Ms. Connell said she was ``horrified'' at the performance of the $68 billion teachers' fund, based in Sacramento. Ms. Connell, an ex-officio member of the board, blamed part of the underperformance on a TAA fund run by Tom Flanigan, the fund's CIO. Mr. Flanigan, saying ``this ship is not sinking,'' added the fund has only two quarters of poor performance.
Ms. Connell and other board members indicated they want to move quickly to improve performance.
SEARCHES & HIRINGS
City of Lansing, Mich., hired its first international managers for its $180 million police and fire retirement system and a new trustee for all of its retirement systems.
Walter Scott and Harding Associates will manage $4 million each in international equities, said Steve Dougan, operations analyst. The $8 million will come from existing domestic equity investments. Officials decided to diversify to keep from exceeding a 55% limit in domestic equities, he said. The $130 million general retirement system also is considering hiring additional international managers in the future.
Also Northern Trust Co. is replacing First Chicago NBD as trustee for both systems.
The Hannah Group assisted.
Pontiac (Mich.) Retirement System committed $13 million to a commercial mortgage investment pool from Capozzoli Advisory for Pensions.
The $300 million City Employees Retirement System and the $177 million Policemen and Firemen Retirement Fund will place $6.5 million each with the real estate manager, that will come out of cash and investment income, said Pamela Hopkins, retirement coordinator for the city. Merrill Lynch Consulting Services assisted the city employees; Callan Associates is the consultant to the policemen and firemen fund.
Separately, Ms. Hopkins will be leaving the retirement system in June to join Munder Capital Management in the client services area. The city will be seeking her replacement.
John V. Murphy was named vice president in charge of Massachusetts Mutual Life Insurance Co.'s pension management business. Mr. Murphy replaces John M. Naughton, who retired. Mr. Murphy had been executive vice president and chief operating officer at David L. Babson & Co., a Mass Mutual subsidiary. He is being replaced at Babson by Frank Tarantino, former president of Liberty Securities, Boston.
James Kartalia, former managing director and head of marketing and administration for ANB Investment Management, is forming a firm to provide strategic consulting to money managers with tax-exempt clients.
He expects Asset Partners Group to start seeking clients by the end of the month. Mr. Kartalia said his firm will consult on long-range issues only, rather than more immediate concerns like improving client prospecting. Mr. Kartalia, who left ANB in January 1996, wanted to take a year off before starting the business