Trustees of the Public School Teachers Pension and Retirement Fund of Chicago today terminated two fixed-income managers: NCM Capital Management Group and Morgan Stanley Asset Management. The move was made to consolidate the $7.1 billion fund's fixed-income portfolio. The $50 million managed by NCM and Morgan Stanley's $218 million will be split among existing managers ANB, Miller Anderson & Sherrerd and Wellington Management pending fee negotiations.
The fund also accepted recommendations from consultant Mercer to allow Miller Anderson and Wellington to invest up to 15% of their portfolios in high-yield bonds and international fixed income, with a combined maximum of 25% in both styles.
THE Philadelphia Municipal Pension Fund trustees shortlisted The Vanguard Group, Dreyfus Management and SEI Asset Management to manage an S&P 500 index fund for the city's $175 million 457 plan, said Joseph J. Herkness, executive director.
Trustees hope to pick a manager Feb. 27.
In a search for a fixed-income money manager, the $740 million Orange County Transit Authority operating fund, Santa Ana, Calif., is seeking proposals from State Street Global Advisors, Fidelity Investments and Payden & Rygel. The three had been finalists in a previous search for the transit authority.
The money will come from a previous unidentified manager who was suspended. The transit authority could choose up to two managers.
Trustees are expected to make the selection March 25.
Real estate returns for the $21 billion Los Angeles County Employees' Retirement Association and the $109 billion California Public Employees' Retirement System are moving up.
For the year ended Dec. 31, the annualized real estate return for LACERA was 13.7%. The three-year return was 10.2%.
The annualized return for CalPERS for the year ended Sept. 30 was 10.6%. The three-year return was 7.1%.
Year-end returns for the NCREIF index were not available. The index returned 8.5% for the year ended Sept. 30, and 7% for the three years.
Hewitt Associates plans to establish a new benefits outsourcing center in Orlando, Fla., and will hire 1,000 new employees to staff the center during the next five years. Hewitt already has nearly 5,500 employees worldwide. The Orlando center opens in July and will be used to manage employee benefit plans for large client companies. Hewitt had annual revenues of $568 million last year and, according to a spokeswoman, expects outsourcing to contribute 50% of revenues in 1997.
SEARCHES & HIRINGS
Central Newspapers Inc., Indianapolis, hired PRIMCO Capital Management to manage a fixed-interest portfolio for the company's $130 million 401(k) plan, said Kevin Salcido, director-human resources. The new manager will take over the $40 million portfolio, which had been run in-house.
CIGNA added 14 investment options to its defined benefit multimanager investment matrix. The new options are institutional separate accounts and bring to 44 the number of options available in the matrix.
New fixed-income options are a government/corporate bond index fund and intermediate bond index fund managed by State Street Global Advisors, and a CIGNA Multi-Sector Bond Index Fund and Global Fixed Income Fund, both managed by CIGNA. New equity funds are Lazard Freres Equity Fund; a core growth equity fund from Putnam; a Russell 3000 index fund and an EAFE index fund from State Street Global; a quantitative small-cap fund from INVESCO; an actively managed small-cap fund managed from Fiduciary Trust International; and an enhanced international equity fund managed by CIGNA.
In addition, CIGNA has initiated three balanced asset allocation funds consisting of multimanagers with equity exposure ranging from 60% to 70%.
Dean Niedospial was named CFO of the $7.1 billion Public School Teachers' Pension and Retirement Fund of Chicago, a new position. Mr. Niedospial was administrator of the $550 million Chicago Park District pension fund. He will start next week. He has yet to be replaced at the park district.
Scott Opsal was named CIO of Invista Capital Management. He replaces S. Ralph Kosmicke, who in 1967 founded the equity management group now called Invista and is a unit of the Principal. Mr. Kosmicke will continue as consulting economist and plans to retire in mid-1998. Mr. Opsal was a vice president managing international equities, a portfolio he will keep