The Clinton administration is objecting strenuously to a Republican move to take away the tax-exempt status of TIAA-CREF. The provision, part of the House Ways and Means Committee's version of the tax bill, is among the top four ``first-tier'' objections on a Treasury Department list obtained by Pensions & Investments.
Chicago Laborers' Annuity & Benefit Fund will take a look at its overall asset mix and will consider increasing its equities exposure because of the recent passage of the prudent investor rule, said James Capasso, executive director. The $1.3 billion fund's asset mix now is 60% stocks and 40% bonds.
The fund also is looking at managed futures and has completed interviews with RXR and Baldwin, in a joint meeting with the Municipal Employees' Annuity & Benefit Fund of Chicago. Fund officials are still discussing whether to invest in the asset class. Becker, Burke Associates is assisting.
United Asset Management will buy a 49% interest in Lincluden Management, the 18th largest institutional investment manager in Canada. Terms were not disclosed. The deal is expected to close in the third quarter. Lincluden manages $4.5 billion in equity, fixed-income and value portfolios.
The Alaska Forest Association, Ketchikan, is conducting an asset allocation study as a prelude to changing its $30 million pension plan's ``very conservative'' portfolio, said Judy Auger, benefits administrator.
The fund will be looking to increase its U.S. equity allocation with its current managers, I.C.M. Asset Management and Columbia Management, which run balanced portfolios. The current asset mix is 37% U.S. stocks, 4% international stocks, 36% bonds, 18% GICs and 5% cash. Wurts & Associates is assisting.
AES Corp., Arlington, Va., might add three options to its $270 million defined contribution plan: international small-cap; fixed income; and self-directed brokerage. Merrill Lynch, AES' existing provider, would be tapped for any additional options.
If approved, the options would be added by the end of the year, said Leith Mann, administrator. The plan currently has seven options.
The U.K. minimum funding requirement for pension funds will be reviewed in light of elimination of tax credits on U.K. advanced corporation tax, government and key actuarial bodies have announced.
With government endorsement, officials of the Faculty and Institute of Actuaries, a standards-setting body, will conduct a review of actuarial practices in the next nine to 12 months. The review will cover standards for calculating funding levels on both an ongoing basis and to comply with the new MFR test. Actuarial officials will meet with John Denham, the junior minister in charge of pension policy, next Tuesday. In the meantime, government officials agreed U.K. pension funds should use existing rules for calculating pension fund compliance with the new MFR.
The Enterprise Group of Funds acquired four retail mutual funds with $38 million in assets from Retirement System Fund. Two of the acquired funds are the Retirement System Emerging Growth Equity Fund, which has been renamed the Enterprise Small Company Growth Fund, and the Retirement System Core Equity Fund, which has been renamed the Enterprise Growth and Income Fund. Two other funds - the Retirement System Intermediate-Term Fixed-Income and the Retirement System Money Market - will be merged into existing Enterprise funds.
The subadviser for the Enterprise Small Company Growth Fund is Pilgrim Baxter. Retirement System Investors will remain the manager of the Enterprise Growth and Income Fund.
SEARCHES & HIRINGS
Florida State Board of Administration, Tallahassee, named Smith Barney Capital Management, Trinity Investment Management and NFJ Investment Group as finalists in a search for large-cap value managers to run portfolios of between $300 million and $500 million. The hires will be finalized after consultant Ennis Knupp and the staff conclude due diligence and final interviews next month, said Lan Janecek, chief of equities for the $70 billion fund.
City of Alexandria (Va.) Supplemental Retirement Fund, chose CIGNA Investments as investment manager and administrator for its $30 million supplemental retirement plan.
The investment portfolio has yet to be developed, said Dan Neckel, director of finance. CIGNA replaces The Principal Group.
Michael Donovan was named senior director for private equity for the University of Notre Dame's $1.5 billion endowment fund. It is a new position. Mr. Donovan, a recent graduate of Harvard Business School, has previous business experience and a law degree, said Scott Malpass, associate vice president for finance and CIO