Philadelphia Municipal Pension Fund, with $2.82 billion in assets, put two domestic small-cap managers, J&W Seligman and George D. Bjurman & Associates, on probation because of performance concerns.
The fund has 5.8% of its assets in domestic small-cap with three managers; Seligman has $36 million; Dreyfus Management, $77 million; and Bjurman, $52.3 million. Trustees of the fund have been worried about the managers' performance for some time; minutes of the November investment committee meeting noted Seligman was having `a very, very difficult period,'' but that Bjurman's performance had shown a ``tremendous reversal'' and was 50% ahead of the index for the year.
RogersCasey is conducting a major research project on risk management in the institutional market. Extensive interviews with 400 large institutional investors will identify issues and categories of risk management and how institutions define and apply risk management practices in the investment process. The study will provide information for the emerging risk management discipline, said Christine England, managing director of market research. The study should be finished in April.
SEARCHES & HIRINGS
The Hamilton College endowment fund, Clinton, N.Y., is searching for one or two venture capital managers, said Daniel J. O'Leary, vice president-administration and finance. The move is part of an effort to raise its venture capital investments 5% to 10% of the total fund. The $280 million fund now has 4.2% invested in nine venture capital partnerships. The new managers would be assigned only part of the new allocation, although the amount wasn't specified. Assets will come from cash flow. It hopes to search for new managers for one or two months.
New York Common Retirement Fund, Albany, committed $45 million to Heritage Fund II, a special situations fund that specializes in providing financing for family-owned firms with liquidity and ownership transition issues, confirmed New York state Comptroller H. Carl McCall. The commitment will be funded from cash flow, said Mr. McCall, the sole trustee of the $78 billion fund.
Virginia Retirement System, Richmond, agreed to make new investments in venture capital and real estate. The fund, with $24.6 billion in assets, decided to invest up to $30 million in the Heritage Fund II, and also put $50 million each into the OCM Real Estate Opportunities Fund and the Lazard Freres Real Estate Fund II, said Bill Sullivan, a VRS spokesman. Funding will come from cash, said Nancy Everett, deputy CIO.
St. Luke's Episcopal Hospital, Houston, picked Callan Associates as its first full-service investment consultant, subject to finance committee approval. Callan will provide investment consulting and asset allocation services for the hospital's estimated $600 million in combined assets, according to a hospital official, who declined to name other finalists.
Georgia Tech Foundation, Atlanta, hired two international equity managers, said Patrick J. McKenna, secretary. Templeton Investment Counsel received $15 million for an active fund, and State Street Global Advisors got $10 million for an index fund.
The move was part of an expansion of the $317 million fund's international allocation.
Kent County Council Superannuation Fund, Maidstone, England, picked Prudential Portfolio Managers to run a £100 billion bond portfolio, said Surjit Lale, investments manager for the £1.05 billion ($1.72 billion) fund. The portfolio will be invested 60% in U.K. index-linked gilts and 40% in U.K. conventional bonds, but PPM will have discretion to invest up to 15% in overseas bonds. Assets will come from bond and balanced mandates managed by Baring Investment and PDFM.
Watson Wyatt advised on the search.
Haworth Inc., Holland, Mich., hired PIMCO and Loomis Sayles as fixed-income managers for its $78.3 million master pension trust fund. PIMCO will run $13.8 million in its Total Return Bond Fund, and Loomis Sayles will handle $3.5 million in a bond fund.
Sanford Bernstein ran the PIMCO portfolio, but was not meeting performance expectations, said Bruce Jackson, manager of domestic finance and investments. Assets for the Loomis portfolio will be from contributions.
Sanford Bernstein officials did not return calls seeking comment.
Fund Evaluations Group assisted.
R. Nevill Brooke, director of IBM Retirement Funds, Europe, Feltham, England, is leaving his post April 5 and likely will seek work as a pension consultant. Martin Jack, a senior financial manager with IBM's U.K. operation, will take over from Mr. Brooke.
As head of IBM Europe's internal pension consulting unit, Mr. Brooke offers investment advice to a dozen European and African IBM pension funds with $16.5 billion in assets. Mr. Brooke said he plans to remain in the consulting area; he has not yet sought any positions