Heitman Capital Management dropped its plan to restructure all 18 of its real estate commingled funds into three property-specific private REITs after investors overwhelmingly opposed the plan. This is the second time in less than two years that pension funds and endowments have scuttled Heitman's attempt to restructure or roll up properties into private REITs.
The decision was announced to clients last week. The funds had 314 investors representing about $2.4 billion of real estate.
The Boston Water and Sewer Commission pension fund, with $40 million in assets, will review preliminary results of an asset allocation study along with manager performance data in mid-June, said Bill O' Donnell, the Hannah Group consultant working with the fund. The study was prompted by the recent hiring of Hannah as the fund's consultant.
BARRA formed a unit that will consult to investment managers. BARRA Strategic Consulting Group combines the former RogersCasey Manager Services with BARRA analytical support. BARRA Strategic will assist money managers in business development, relationship management strategy, investment integrity review, market research and other areas. John Casey will lead the new group.
Sixteen new options were added to Equitable's Accumulator variable annuity program. Separate account clones of the following retail mutual funds are available: from Putnam, the Growth & Income, Investors Growth and International Equity funds; from MFS, the Research and Emerging Growth Companies funds. Equitable added a Small Cap Growth Fund managed by Alliance Capital, a subsidiary, and dropped the Alliance Growth Investors and Global funds. Ten internally managed fixed interest rate options with varied maturities were also added.
FTSE International is launching six new style indexes for the U.K. stock market using style methodology developed by Frank Russell Co. The offerings will be separate value and growth indexes for the FTSE 350, FTSE 250 and FTSE 100 indexes. The new indexes will start in June 1997 but will have historical data back to December 1996. FTSE International is owned equally by the Financial Times and the London Stock Exchange.