Reed Elsevier Inc., New York, started an asset allocation study for its approximately $200 million pension fund, said Vera Lang, treasurer.
It will look at adding managers and changing allocations, although a particular target is still under study.
Independence Investment Associates is the fund's sole manager. It runs a balanced portfolio, now allocated 55% equities and 45% fixed income.
The fund hired Ennis Knupp as a consultant to assist in the study, which could be completed in a couple of months.
Vermont Municipal Employees' Retirement System's new consultant, Hewitt Associates, will review its asset allocation this fall, said Michael Smith, a spokesman for State Treasurer James H. Douglas, Montpelier. As of March 31, the $101 million system had 47.7% of its assets in domestic equities vs. a target of 48.3%, and 4.8% in foreign equities, against a 6.3% target. Other allocations and targets are: 27.2% in domestic bonds vs. 28.3%; 8.8% in non-U.S. bonds vs. 6.3%; 0.9% in in-state investments, vs. 4% target; and 4% in real estate against 7%; and 6.7% in cash.
Institutional Investor has agreed to be purchased by Euromoney Publications in a deal worth $142 million. Padraic Fallon, chairman of Euromoney, said the deal is expected to close by about Sept. 1, pending an extraordinary shareholder meeting. The 73% shareholder of Euromoney - Associated Newspapers Holdings Ltd. - has already agreed to vote in favor of the deal, Mr. Fallon said.
The deal will be financed with a $150 million medium-term bank facility.provided by HSBC Group at an interest rate of LIBOR plus 0.5%, according to a statement.
The current owner of Institutional Investor is ABC Inc., which is owned by Walt Disney Co.
SEARCHES & HIRINGS
Fairfax County (Va.) Police Officers Retirement System picked Lazard Freres, Rowe Price-Fleming International and Capital Guardian as finalists in a search for an international equity manager, said Don A. McCorry, retirement administrator. Trustees will make their pick at the Aug. 13 board meeting, he said. The system already has 8.5% of its approximately $452 million assets in international stocks with WorldInvest.
The fund's target for international stocks is 10%. It is unclear how much money will be run by the new manager and WorldInvest after the search.
Teacher Retirement System of Texas, Austin, named Northern Trust as domestic and global custodian. Northern had been the $59 billion system's global custodian; Bank of New York had been domestic custodian. The selection centralizes the system's custodial activities with Northern Trust, which will provide securities lending, foreign exchange and cash management services as well as custodial and performance-related services effective Sept. 1.
Firstar Investment Research and Management, Milwaukee, hired Hansberger Global Investors to subadvise its $55 million Portico International Equity Fund, said Mary Ellen Stanek, president. Hansberger replaces State Street Global Advisors, Ms. Stanek said. The change is pending shareholder approval, with a vote set for early August.
Equitable Life Distributors, Newport Beach, Calif., hired Putnam Investments and MFS for its new multimanager variable annuity fund. Putnam will begin managing between $2.5 and $5 million in seed money in large-cap value, core growth equity and international equity portfolios. Equitable also will seed the MFS Research Fund and MFS Emerging Growth Companies Fund with similar amounts, said Jamie Shepherdson, managing director of Equitable Distributors. The company probably will be adding more managers in the fourth quarter, he said.
Security Benefit Life Insurance introduced a new flexible variable annuity, Variflex Signature, which offers 14 diversified investment options. Security Benefit and its subsidiaries manage 10 options. T. Rowe Price manages two options - an equity income and a managed asset allocation account. Meridian will provide investment research for a specialized asset allocation account, managed by Security Management. Lexington runs a global equity option and a global aggressive bond option.
WHO'S NEWS
George A. Long, president since 1996 and CIO of Oppenheimer Capital for the past 10 years, has been named chairman and CEO of the money management firm. Mr. Long, who continues as CIO, succeeds Joseph M. La Motta, CEO for the past 15 years, who has been named chairman emeritus.
Susan Manske was promoted to be Ameritech's director of risk management, a new position at the $16 billion pension fund, industry sources said. Ms. Manske previously was director of capital markets for the fund. Additional information was not available
