Vermont State Employees' Retirement System trustees, Montpelier, will consider next month whether to adopt recommendations by consultant Wilshire Associates to drastically cut the system's exposure to U.S. stocks and more than double the exposure to U.S. bonds.
James H. Douglas, state treasure, said the recommendations to the $701.1 million fund are 33% domestic stocks, down from the current 50%; 20% international stocks, from up 17%; 32% domestic bonds, up from 15%; dumping entirely international bonds, now at 5%; and boosting alternatives to 5% from 3%. Wilshire recommended the system maintain its 10% exposure to real estate.
The state also retained State Street Bank as custodian for the employees' fund, the $776 million State Teacher Retirement System and the $101 million State Municipal Employees' Retirement System.
Pacific Investment Management Co. resigned as bond manager for the $15 billion State of Connecticut Trust & Retirement Funds. Hartford PIMCO's resignation follows a request from Connecticut's governor that state Treasurer Christopher Burnham cancel the fund's contract with PIMCO because of a perceived conflict of interests. Mr. Brunham announced last month that he is leaving to become CEO of Columbus Circle Investors, owned by PIMCO Advisors, PIMCO's parent Columbus Circle resigned as a money manager for Connecticut two days before Mr. Burnham announced his resignation.
SEARCHES & HIRINGS
Stitching Pensioenfonds ABP, Heerlen, The Netherlands, will seek U.S. and European small-cap managers toward year-end, a spokesman for the Dutch civil servants pension fund confirmed. The subcategories are new for the 250 billion guilder ($123.5 billion) fund. A formal search process has not yet begun, the spokesman said. Details of the sizes of any mandates were not revealed.
Oklahoma Gas & Electric, Oklahoma City, is searching for a domestic fixed-income manager and its first midcap equity manager Marquette Associates is assisting. marquette will present four or five candidates for each mandate. A selection will be made by mid-September, said James Hatfield, vice president and treasurer for the $220 million fund. Portfolio sizes have not been determined.
Funding for the fixed-income portfolio will come from either reducing or eliminating the $100 million the fund has in a Ryan Labs Asset Management Index Fund; the midcap equity piece may be carved out of a domestic equity account with Boatmen's Trust.
C.R. Bard Inc., Murray Hill, N.J., hired Vanguard to provide bundled services to its $100 million 401(k) plan. C.R. Bard now uses quarterly valued record-keeping services from Kwasha Lipton and offers four investment options from different money managers. The changes are effective Jan. 1.
Specialty equipment Cos. Inc., Aurora, Ill., revised its $21 million 401(k) plan, choosing four new managers, said Douglas Johnson, director of financial services. Added were: First American Equity Index Fund; Putnam New Opportunities Fund; a small stock fund; Fidelity Advisor Overseas Fund; and a stable value fund from PRIMCO Capital. The four new funds replace group annuties sponsored by Equitable and managed by Alliance Capital, Mr. Johnson said.
Brinson Partners, which manages the fund's $30 million, defined benefit plan, remains as the manager of the fifth option, a global multiasset fund, he said.
EFR Advisors assisted with the changes.
Oklahoma City Employees Retirement System selected BankOne as custodian, said Rena Hutton, retirement system administrator for the $226 million fund. BankOne replaces Boatmen's. The other finalist was Bank of Oklahoma. The search was done following the sale of Boatmen's to NationsBank.
Mutual of Omaha introduced a new single premium variable universal life insurance program - Ultra Variable Life - that incorporates 24 investment options T. Rowe Price is the subadviser for five accounts; Fred Alger, two MFS, five options; Scu