Emory University, Atlanta, with an approximately $3.5 billion endowment, asked its consultant, Cambridge Associates, to come up with a recommendation on increasing its international equities exposure this year. The endowment now has about 10% of assets in non-U.S. stocks.
The endowment has no specific target in mind; a decision is expected ``probably by the end of 1997,'' said M. Wayne Coon, associate vice president. He added international equities is the only asset class the endowment is focusing on this year.
The California State Teachers Retirement System, Sacramento, gave ``good'' performance ratings to separate real estate account money managers AMB Institutional Realty Advisors, Equitable Real Estate, Metric Institutional Realty, MIG Realty and Westmark Realty.
CalSTRS also gave a ``satisfactory'' to The O'Connor Group and gave Retail Property Trust a ``needs improvement.'' The ratings report said Retail Property Trust has given disappointing investment returns and lacks a future strategy. No manager received the $68 billion fund's lowest rating.
The ratings were part of an annual review.
State Street Global Advisors will introduce three new asset allocation mutual funds midyear. The three life style funds will be clones of SSgA's existing institutional LifeSolution group commingled trusts and span the risk spectrum. Institutional clients will move about $100 million into the mutual funds from the several billion dollars they have invested in the commingled life style funds, said Gus Fish, an SSgA principal. The funds also will be open to retail investors, unlike the commingled group trusts.
State Street also plans to aggressively push the LifeSolution mutual funds as IRA rollover candidates to departing or retiring defined contribution plan investors.
The federal government must streamline regulation of the private pension system to encourage more for retirement savings, said Sylvester J. Schieber, director of research at Watson Wyatt, in hearings today before the House Subcommittee on Employer-Employee Relations.
Mr. Schieber suggested allowing employers to fund retirement benefits as they are earned through traditional pension plans, just as they are allowed to do through defined contribution plans. Mr. Schieber also suggested synchronizing tax rules with PBGC rules and changing 401(k) rules so workers who don't contribute one year because of financial needs can make it up the following year.
Vanguard replaces Chancellor Capital Management July 1, said Lou Porpora, contract supervisor and operations manager for the $2.2 billion plan. Chancellor bid for the portfolio, but was not a finalist. Mercer assisted.
Orange County Employees Retirement System, Santa Ana, Calif., with $3.4 billion in assets, allocated $5 million to the Cornerstone Equity Investors IV L.P. fund. Cornerstone is a private equity fund that makes acquisitions of public and about-to-go-public companies. The allocation will come from cash over two to three years.
University of Iowa Foundation hired Artisan Partners to manage $10 million in core international equity and added $5 million to an Everest Capital hedge fund.
The $400 million foundation hired the firms for rebalancing and international diversification, said Larry Bruse, treasurer. Everest already has $17.6 million of foundation assets in its global emerging markets fund.
Funding might come from the foundation's U.S. equity managers or its other international equity manager, Warburg Pincus.
Cambridge Associates assisted.
Tony Coccoluto was named manager-benefits trust at Gillette Co., Boston, to oversee the company's more than $1.5 billion 401(k) plan and $800 million defined benefit plan. He replaces Nancy I. Chaddock, who retired. Mr. Coccoluto had been an analyst in foreign exchange and interest rate management in the treasury department.
Murray L. Becker and Kathleen D. Rooney, founders of Becker & Rooney, will be joining three other principals in a move to J.P. Morgan Investment Management. They are joining Helen McGreevy, Peter Chappelear and Claudia Sievert in the move.
Becker & Rooney, a stable value consulting and investment management firm, was merged with Kwasha Lipton in 1995. Kwasha Lipton recently was acquired by the international accounting firm Coopers & Lybrand which, according to industry sources, was not professionally comfortable with the accounting restrictions of stable value products.
Becker & Rooney provided stable value investment services to about 20 mostly large plans, which will move with the group