Santa Clara (Calif.) County Transit District soon will hire a consultant to help it conduct an asset allocation study and select the first external managers for its $108 million pension fund.
The fund is talking with several consulting firms to handle searches and asset allocation, said Jerry Rosenquist, deputy director.
Manager searches will begin in the next few months after an asset allocation study has been completed. The fund now is handled by the county's treasurer.
Staff of the California State Teachers' Retirement System, Sacramento, reports eight districts are joining its new cash-balance investment plan for temporary employees in California school and community college districts. Another nine indicated they intend to join. Investments will be run by the $68 billion CalSTRS fund's existing money managers. Assets of the plan are small so far.
Meanwhile, the selection of CalSTRS' new CIO been slowed by the addition of candidates. Interviews for candidates have been moved to sometime in early May, said James Mosman, CEO. He couldn't say how many candidates are in the running for the post now held by Thomas E. Flanigan.
Public Schools Retirement System of Missouri, Jefferson City, likely will promote from within to replace departing Executive Director M. Steve Yoakum. He is leaving the $14.5 billion fund to join Rockwood Capital Advisers as managing director and chief operating officer.
Trustees will interview the fund's two assistant directors, Joel Walters and Keith Bozarth, and Chief Financial Officer Virginia Brizendine at its April 8 meeting.
Avatar Associates plans to launch an emerging markets TAA product later this year, said President Edward S. Babbit Jr. The product will be similar to Avatar's global TAA product, which uses passive vehicles and emphasizes country selection and weightings, but it will allocate only between equity and cash because of the shortage of fixed-income vehicles, he said.
Markets will include some of the more developed Asian and Latin American countries, as well as some of the minor European markets.
Micro Modeling Associates and Derivative Associates formed a joint venture, the Measurisk Group, to prepare global risk measurement systems for financial institutions that trade complex securities and their customers, including pension funds and mutual fund managers. Initial projects range from customizing existing risk measurement tools to include specific asset classes, and developing proprietary methodologies.
The SEC today adopted rules clearing the way for hedge funds to seek more than 100 investors as long as the investors are ``qualified purchasers.'' The rules implement changes made by Congress last year. Under the new law, institutional investors must have more than $25 million in assets and individual investors must have more than $5 million in investments to qualify. But the rule does not give defined contribution plans with more than $25 million in assets the green light to offer hedge funds to their participants.
American Express Financial Direct, Fidelity and Jack White have formed an alliance with Morningstar.
The three firms will make their on-line brokerage services including mutual funds available through Morningstar's website, http://www.morningstar.net.