Bristol (Conn.) General Retirement System restructured its asset allocation and may look for a new real estate manager.
The fund reduced U.S. bond exposure to 29% from 35% of its $240 million in assets. Real estate was increased to 6% from 1.9% of the portfolio. The board may decide to add a real estate manager, said Theodore Hamilton, controller and secretary to the board. Incumbent real estate managers are CIGNA and MetLife Realty. Trustees meet May 15.
Bristol also will add $3.9 million in international small-cap, which will come from core international equity and managed by an existing manager. In bonds, the board approved the allocation of 2% to high-yield bonds and 8% emerging debt exposures, which will be handled by existing bond managers.
Sioux Falls (S.D.) Retirement System is boosting its equity allocations as a result of asset-liability and optimization studies for its $150 million in assets, said Thomas J. Huber, pension manager.
Non-U.S. equities will rise to 20% of assets from 15%, and U.S. equities will rise to 50% from 40%. Assets will come from decreasing U.S. bonds to 25% from 40%. The system expects to finish the changes in the third quarter.
The international allocation will increase the assignments of Lexington, T. Rowe Price, and Templeton. The new U.S. allocation will increase the assignments of Acorn, Alliance, Bankers Trust, Denver Investment, MacKay Shields, T. Rowe Price and Wilke/Thompson. The fixed income decrease will come from Bankers and STW. Becker Burke assisted.
Mississippi Employees' Retirement System, Jackson, is delaying its emerging equity markets search. The fund initially planned to begin in early summer but now might start later in the season, said Lorrie Tingle, deputy director of investments. ``Other issues have come up,'' she said. The $10.5 billion fund set a target of 10% of its non-U.S. equities, or 2% of total assets.
TIAA-CREF lowered expense ratios on investment options offered to 403(b) plan participants for the second year in a row. As of May 1, the $88 billion CREF Stock Account will charge 31 basis points, rather than 32; the fee for the CREF Social Choice Account will be 30 basis points, down from 31; Global Equities will charge 38 basis points rather than 40; and CREF Growth will carry a 36 basis-point charge, down from 37. The TIAA Real Estate Account fee fell to 60 basis points from 70.
Pennsylvania Treasurer Barbara Hafer said she has ordered investment managers for the state's Tuition Account Program to sell the $227,000 worth of tobacco stocks it holds. Ms. Hafer said she will propose that trustees of the three state pension boards and the state Workmen's Insurance Fund also sell their combined $400 million holdings of tobacco stocks. She is a board member of the State Employes' Retirement System, the Public School Employes' Retirement System and the Municipal Retirement System.