Chicago Transit Authority Retirement System is considering investment policy and actuarial changes because of an early retirement program for which 3,000 employees are eligible. The $1.4 billion fund is 86% funded but could experience problems because of the buy-out and a six-month moratorium on contributions by employees and the CTA.
Trustees will be considering manager and policy changes with the help of consultant Wellesley Group and actuary Watson Wyatt at board meetings for the next few months. The current asset mix is 70% equity and 30% bonds. Real estate is divided between equity and bond categories. Trustees are scheduled to meet March 25.
Prince Georges County pension fund o fficials, Largo, Md., will review its asset allocation following an asset allocation study by Watson Wyatt Investment Consulting, said Kathy Colbert, retirement administrator. The board meets in May and may make a decision then, she said. Officials of the roughly $500 million fund also are conducting their annual manager review, paying particular attention to real estate.
Board members will consider an international allocation, which is not officially part o f the portfolio although some international holdings are held by the fund's domestic managers, she said. Its current allocation is 60% stocks, 35% fixed income, 3% real estate and 2% cash.
ICMA Retirement and Barclays Global Invest ors formed a strategic alliance to provide a full lineup of index funds to public sector participants in defined contribution and deferred compensation plans.
Barclays will run four new index funds - a 500 Stock Index Fund, which will mimic the S&P 500 index; the Mid/Small Company Index Fund, which will duplicate the performance of the Wilshire 4500 Index; a Core Bond Fund, linked to the Lehman Brothers Aggregate Bond Index; and the Overseas Index Fund, a st ock fund tied to the MSCI EAFE index. The funds will be available June 1.
Opening arguments started today in the trial between four Wellington Management partners and former partner Arnold C. Schneider over the establishment of his firm, Schneider Capital Management. The trial, in Middlesex County Superior Court in Cambridge, Mass., is expected to last two weeks.
Trustees of the Colonial Williamsburg Foundation, Williamsburg, Va., filed a friend of the court brief Tuesday asking the court to lift an injunction barring Mr. Schneider from accepting former clients. The judge is expected to hear arguments on the motion Monday. Spokesmen for both firms had no comment.
Pennsylvania State Em ployes' Retirement System, Harrisburg, hired Rosenberg Institutional Equity for a mid/ small-cap core stock mandate of up to $200 million.
The $18 billion system also committed up to $150 million in alternative investments to three funds: up to $75 million to TPG Partners II, up to $50 million to Code Hennessy & Simmons III, and up to $25 million to ABRY Broadcast Partners III. In real estate, the board allocated $40 million to Lowe Enterprises Hotels and Re sorts Fund. Assets came from cash. RogersCasey assisted on the stock allocation, Cambridge on the alternative investment allocations and Townsend Group on real estate.
Virginia Retirement System, Richmond, agreed to make new invest ments in three limited partnerships. The $24.7 billion fund will invest up to $60 million in the Koll/Bren Opportunity Fund IV, a distressed properties fund run by Koll Investment Management.
Up to $100 million will be invested in WCAS Capital Partners III L.P., a fund specializing in subordinated debt in midsized companies managed by Welsh, Carson, Anderson & Stowe. Up to $75 million will be invested in Charterhouse Capital Partners VI , a buy-out fund. As sets will come from existing cash flow.
Missouri State Employees' Retirement System, Jefferson City, with $3.6 billion in assets, hired Zak Capital Management to replace Investment Advisers, which ran a $120 million U.S. midcap por tfolio. Trustees will take over a $230 million corporate bond index portfolio run by Boatmen's. A spokesman for Boatmen's declined to comment. Investment Advisers officials could not be reached.
San Diego County Employees' Retireme nt Association hired two alternative investment managers: San Diego Ventures and the CEF Infrastructure Fund, which is run by a joint venture between Cheung Kong Holdings and Canadian Imperial Bank. Each manager received $10 millio n, said Richard Rose, CIO of the $3 billion fund.
Glen Casey, former consultant at Cerulli Associates, joined Goldman Sachs Asset Management. He will provide strategy consulting to the mutual fund group. Officials at Goldman declin ed to comment.
Mr. Casey's duties at Cerulli have been assumed temporarily by Peter Starr, said President Kurt Cerulli. Cerulli is seeking two retirement plan specialists