TACOMA, Wash. - Small-capitalization stocks, represented by the Russell 2000 Index, returned -5.17% in the first quarter, Frank Russell Co. announced.
It was the worst quarterly performance for small-caps since the second quarter of 1992.
The Russell 1000 index returned 1.5% for the quarter, while the Russell 200 Index returned 2.6%. The 50 largest stocks returned 3.5%, the best performance of any capitalization group for the quarter. Value stocks outpaced growth in all capitalizations for the quarter. The Russell 1000 Value Index returned 2.6% compared with 0.5% for the Russell 1000 Growth Index. The Russell 2000 Value Index retuned -0.25%, while the Russell 2000 Growth Index returned -10.5%.
MSCI EAFE falls 2%; World Index down 0.2%
NEW YORK - The Morgan Stanley Capital International Europe Australasia Far East Index (without dividends) fell 2% in U.S. dollar terms in the first quarter, while the MSCI World Index dropped 0.1%. For March, the EAFE inched up 0.2%, while the MSCI World index fell 2.1%.
MSCI's Europe index climbed 4.4% for the quarter, while its Far East index fell 10.8%. Germany's market was the highest of developed countries with an 11% rise, while Japan trailed with -12%.
The MSCI Emerging Markets Free index gained 8%. Turkey's market led with a 47.4% jump, while Thailand's was last at -15.2%. In March, MSCI's Emerging Markets Free index fell 2.9%.
ICMA, Barclays team up to offer index funds
WASHINGTON - ICMA Retirement Corp. and Barclays Global Investors formed a strategic alliance to provide a full lineup of index funds to public sector participants in defined contribution and deferred compensation plans, said Robert Barkin, an ICMA spokesman.
Barclays will manage 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, which will be linked to the Lehman Brothers Aggregate Bond Index; and the Overseas Index Fund, a stock fund tied to the Morgan Stanley Capital International Europe Australasia Far East Index. The five funds will be available June 1.
PBCG wants company to keep underfunde plan
TAMPA, Fla. - The Pension Benefit Guaranty Corp. will require Likes Brothers Steamship Co.'s pension plan to remain active after the company is reorganized.
The steamship company planned to ask the U.S. Bankruptcy Court in Tampa to terminate the plan. The plan has $38.4 million in assets and $45.6 million in liabilities.
Through the agreement, 75% of the stock of the new company - now named Blue Water - will be owned by a major creditor and 25% will be owned by the PBGC. Also, $100,000 will be contributed to the pension plan to settle PBGC's objections and claims.
CalSTERS CIO interviews pushed back to May.
SACRAMENTO, Calif. - The selection process in the hiring of a new chief investment officer for the California State Teachers' Retirement System has been slowed by the addition of candidates that will undergo initial screening.
Candidate interviews have been moved to early May, said James Mosman, chief executive officer of the $68 billion fund. Mr. Mosman couldn't say how many candidates are in the running for the post, now held by Thomas E. Flanigan.