Ontario Teachers' Pension Plan Board, Toronto, is considering entering the U.S. securitized real estate market. REITs are the most likely option. The move would signify a major change in investment strategy; the fund currently has no real estate investments outside Canada. Since its inception in 1990, the C$51 billion (U.S. $36 billion) fund changed its target asset mix to 75% equities from 100% domestic fixed income.
University of Tulsa's $450 million endowment fund is finishing a search for a large-cap value equity manager to run up to $20 million, said Warren Henshaw, director of endowments and investments. He wouldn't name the finalists. He also said he expects the fund to increase its allocation to alternative investments later this year; the endowment has 5% of assets allocated to alternatives now.
Corporate Consulting Group is assisting.
The PBGC is taking over two pension plans of Silo Inc., Philadelphia, an appliance store chain. The plans have liabilities of $17 million and assets of $13.6 million. The company shut down the plans Feb. 1, 1996, when it went out of business. The plans cover more than 3,000 former workers.
The American Stock Exchange will be able to process options trading in sixteenths of a dollar starting July 28. Currently, only options priced below $3 trade in sixteenths. The Amex began trading stocks in sixteenth increments on May 7.
Bridge, Structural, Ornamental and Iron Workers Local 207, Boardmen, Ohio, is considering a fixed-income manager search. Trustees at the $15 million fund terminated Dana Investment Advisors, which invested $6 million in SBA loan pools, said Lanny Burton, chairman of the pension committee. He was unsure if a full-scale search will be done to replace the manager, or if the money will be left in a money market fund.
Segal Advisors is assisting.
Phoenix Duff & Phelps soon may replicate the investment style it uses in two retail international equity funds for institutional separate accounts. The firm also might create institutional versions of the Phoenix-Aberdeen New Asia and Global Small Cap mutual funds, said spokeswoman Barbara McLaughlin. The funds are a joint venture between Phoenix Duff & Phelps and Aberdeen Trust.
Arlington County (Va.) Retirement System today selected Mellon Capital Management to manage $160 million in a core TAA portfolio. Funding will come from cutting allocations to existing stock and bond managers, said Bruce Kallos administrator, of the $800 million fund. Fund officials and their consultant, Ashford Capital, are negotiating a contract that includes a cap of 40 basis points on Mellon's fees.
San Antonio (Texas) Fire & Police Pension Fund hired Rothschild to manage a $30 million domestic small-cap value equity portfolio. Assets will come from a manager being terminated; Wier Labatt, executive director of the $880 million fund, declined to name the firm. Other finalists were Loomis, Sayles; Westport Asset; and Rosenberg Institutional. Towers Perrin assisted.
Teamsters Local 734, Chicago, hired Fiduciary Management and Great Lakes Advisors to manage $5 million each in midcap equities, said Erwin Pasch, administrator of the $130 million fund. Funding will come from reducing the allocation to Killian Asset Management, which will continue to run $110 million in a balanced portfolio.
Investment Performance Services assisted.
University of Washington, Seattle, committed $2 million of endowment assets to Arch Venture Fund III, said Alison Borland, assistant treasurer of the $448 million fund. Cambridge Associates assisted.
U-Haul International, Phoenix, hired Vanguard as investment manager for its $61 million 401(k) plan. The Vanguard S&P 500 Index Fund and the Vanguard Wellington Fund replaced the Fidelity Spartan Fund and Fidelity Balanced Fund July 1. Trustees wanted to move due to the lower cost, said Samuel Briggs, chairman of the advisory committee.
Ingram Entertainment Inc., LaVergne, Tenn., hired Barclays Global Investors MasterWorks Group as a semi-bundled provider for its defined contribution plan and Vanguard Group, Janus, and Pilgrim Baxter as mutual fund managers for its new cash balance plan, both formed as a result of a recent spinoff from Ingram Industries.
Barclays is providing four equity options with a fifth stable value option being offered by Sanford C. Bernstein for the new $5 million DC plan, said Ed Triplett, vice president and treasurer. Two or three funds may be added later this year from Merrill Lynch, which is in the process of forming an alliance with MasterWorks, he added.
For the $35 million cash balance plan, Vanguard will run an S&P 500 index fund and a growth equity fund; Janus, an international equity fund; and Pilgrim Baxter, a small-cap equity fund