Investors of the Student Loan Marketing Association today overwhelmingly approved a reorganization plan and a new board of directors nominated by dissident shareholders on the Committee to Restore Value. Of the 53 million shares cast, at least 80% were cast in favor of the reorganization plan, according to a preliminary tally.
Each of the nominees on the dissident 15-member director slate also received at least the majority of the votes cast. The new board will take office after certification of the results, and incorporation of the new holding company.
New York State Teachers' Retirement System trustees today approved a new asset allocation plan that on paper raises the $65.2 billion fund's equity allocation, but actually will result in a paring stocks. The board increased total equities to a target of 55%, from 50%. The strong stock market, however, has driven equities to 60% of the total portfolio, said George Philip, CIO of the Albany-based fund. The only other asset type significantly affected in the new allocation is mortgages, which will be reduced to a 6% target from 8%.
The board also committed additional money to two existing real estate commingled funds and to an existing separate account real estate manager. The Allegis Realty Fund Separate Account and the Prudential Property Investors Separate Account each will receive $50 million, boosting the fund's investment in each to $168.8 million and $151.8 million, respectively. Cabot Partners will receive an additional $100 million for the separate account it manages for the system.
DTE Energy's $1.4 billion pension fund is preparing for a managed futures manager search following an asset allocation study that doubled alternative investments to 10% of total assets. The Detroit-based fund will allocate 2.5% of total assets to each alternative subclass; managed futures; market neutral; timberland; and mezzanine debt. Funding will come from equity and bond allocations, said Allen W. Anning, director of trust fund management. No managers will be terminated.
No RFPs have been issued. In timberland and mezzanine investments, he expects consultant New England Pension Consultants to handle individual deals for the fund.
The Oregon State Treasury is trimming a list of candidates to run part of its non-U.S equity portfolio, following the termination of two firms that oversaw a total of $580 million for the state's pension fund. Treasury staff, Wilshire Associates and Frank Russell will discuss candidates to recommend to the Oregon Investment Council, probably by the end of September. A list of 22 firms has been identified. They include Bank of Ireland, J.P. Morgan, Oechsle International and Brandes Investment.
The $25 billion Oregon Public Employes' Retirement Fund has about 20% of its portfolio invested in international equities. With the terminations in May of Barings Asset Management and DSI International, almost 50% of Oregon's international portfolio is under passive management, exceeding the fund's policy target of 30%.
Jay Fewel, senior equities investment officer, said the fund would have to shift about $950 million from passive to active management to reach its policy target.
Samsonite Corp., Denver, agreed to take over the underfunded pension plans of its subsidiaries McCrory Corp. and Schenley Industries Inc. as a result of an agreement negotiated with the PBGC. The McCrory plan had assets of $43 million and liabilities of $68 million; the Schenley plan had assets of $29 million and liabilities of $48 million. McCrory, which is in bankruptcy, failed to meet its responsibilities for the two pension plans.
Aberdeen Asset Management is acquiring Prolific Financial Management in a deal that will boost Aberdeen's assets under management to £11 billion ($17.9 billion) from £3.1 billion ($5.1 billion).
Subject to shareholder approval, Prolific's parent, The Scottish Provident Institution will receive 58.4 million new Aberdeen shares, valuing Prolific at £55.5 million ($90.5 million). Combined with Scottish Provident's existing 1.5 million holding of Aberdeen stock, the life insurer will own 41% of Aberdeen's equity.
The combined firm will be renamed Aberdeen Prolific Asset Management.
Illinois State Board of Investment, Chicago, hired Nicholas-Applegate and J.& W. Seligman to each manage $50 million in small-cap growth equity for the $6.3 billion fund. The firms replace Chancellor LGT. The search was conducted in-house.
Charles E. Culpeper Foundation, Stamford, Conn., committed $5 million to a REIT fund run by CRA Real Estate Securities. The $193 million foundation will fund the commitment from cash left from terminating small-cap stock manager Pinnacle Associates earlier this year, said Boris Wessley, comptroller. Cambridge Associates assisted.
Amarillo Hospital District, Amarillo, Texas, hired Amarillo National Bank as custodian for its $22 million defined benefit fund. The bank will replace the local branch of Boatmen's Trust. The search was conducted in-house