Trustees for the Indiana State Teachers' Retirement Fund, Indianapolis, will review the results of an asset-liability study at its July meeting, said Robert Newland, investment officer. The study will include the fund's first allocation to equities, following a referendum in November that allowed equity investment for state pension funds. Trustees of the $3.6 billion fund will continue with educational sessions on equities this month, he said.
Following the study, consultant Callan Associates also will research related issues that are new to the fund, such as directed brokerage and proxy voting, Mr. Newland said.
A proposed ordinance introduced in the Philadelphia City Council would require the $2.75 billion Philadelphia City Municipal Pension Fund to sell holdings in cigarette manufacturers and distributors, said Marie Hauser, chief clerk to the council. The ordinance will be heard in committee and then go the full council for a vote. The council ends its session June 19 and reconvenes in September, Ms. Hauser said.
Bank of New York introduced a new portfolio management service for institutional and individual investors with more than $100,000. The bank will determine asset allocation for the investor and implement and rebalance the mix using its 10 BNY Hamilton proprietary mutual funds.
Investors from Singapore comprised the largest foreign investor in U.S. commercial real estate, and office buildings were the property type of choice for overseas investment groups in 1996, according to the international investment team of CB Commercial. An analysis by the team, which profiled about $3 billion in transactions completed by foreign buyers during 1996, showed the largest amount of foreign investment, 37%, came from Singapore. Germany was the second, accounting for 18%. Unlike the Singaporeans' preference for offices, the Germans were diversified U.S. property investors, buying office, retail, industrial and apartment properties. Other significant buyers were Hong Kong investors, 17%; Canadians, 10%; and Middle Eastern investors, 4%.
Munder Capital Management introduced three lifestyle funds. The funds invest in a basket of more than 20 mutual funds offered by Munder. Munder controls asset allocation among the funds using a downside risk control model. The three funds are: the All-Season Maintenance Fund, the All-Season Development Fund and the All-Season Accumulation Fund. Objectives of the funds range from conservative to aggressive.
The Lutheran Brotherhood added a midcap stock fund to its family of mutual funds. The LB Mid Cap Growth Fund will invest in companies with capitalizations of $1 billion to $5 billion. The family offers three other mutual funds.