Chicago Laborers' Annuity & Benefit Fund probably will review its asset allocation if Illinois Gov. Jim Edgar signs a bill allowing it and the Chicago Municipal Employees' Annuity and Benefit Fund to adopt prudent person standards for investing, said James Capasso, executive director of the $1.2 billion laborers' fund.
Separately, board members agreed to a joint meeting with the Chicago municipal fund to discuss possible managed futures investment structures with RXR and Baldwin Group. Becker Burke is assisting the fund.
California Public Employees' Retirement System, Sacramento, reported its annualized investment performance for periods ended March 31. The returns were 11% for one year, 13% for three years and 11.8% for five years. TUCS median annualized returns for large public funds during the same periods were 11.1% for the year, 13.1% for three years and 11.5% for five years.
The $118 billion fund also announced it has bought inflation-linked U.S. Treasury bonds. The bonds are being used to enhance the risk and return characteristics of its fixed-income portfolio.
Virginia Retirement System, Richmond, is considering using performance-based fees for some outside money managers, said Nancy Everett, deputy CIO for the $25.9 billion fund. The fund also is focusing on transaction costs and risk management, and may expand trading cost analysis to international stocks.
Zacks Investment Research, making its first move into traditional money management, teamed up with Reich & Tang to offer an equity investment fund. Separately, Zacks is seeking a partner to handle distribution for a mutual fund it wants to establish, said Leonard Zacks, president and CEO.
In the Reich & Tang venture, it is offering a unit investment trust based on the 39 top equity picks of Zacks analysts. On the mutual fund, Mr. Zacks said his firm wants to manage a mutual fund and has been seeking a distributor. He declined to say how close it is to putting together a deal.
Chinook Capital, an equity manager and Seattle Capital Management, a bond manager, merged to form a new firm, Chinook Capital Management. Terms of the deal were not disclosed. Blake Singer and Greg Houser, who had been partners at Chinook, will continue to be based in Portland, Ore. Former Seattle Capital principals Kenneth Schultz, Jerry Wiesner and Laurie Nichols will remain in Seattle.
Prior to the merger, Chinook had $50 million under management and Seattle Capital managed $400 million.