ARLINGTON, Va. - The $165 million Navy-Marine Corps. Relief Fund has equitized its $8 million market-neutral portfolio run by Standish, Ayer & Wood, using S&P 500 futures to mimic the stock market, said Jim Koltes, chief of the asset allocation committee.
The portfolio is 100% equitized now, but the fund overlaid a proprietary tactical asset allocation model that will guide the level of equity exposure and determine when to pull back.
The fund has about $11.6 million in an equitized long-short strategy with Numeric Investors L.P. and about $6 million in an unequitized strategy with Weiss Associates.
The fund decided to equitize the Standish Ayer long-short portfolio "based upon our experience with our Numeric equitized portfolio and our tactical asset allocation model," Mr. Koltes said.
UAM buying 49% of Canadian Firm
BOSTON - United Asset Management Corp. will buy 49% of Lincluden Management Ltd., the 18th largest institutional investment manager in Canada. Terms were not disclosed.
Oakview, Ontario-based Lincluden handles $4.5 billion in equity, fixed-income and balanced accounts. The deal is expected to close in the third quarter.
UAM wanted to acquire more of Lincluden, but settled for a 49% stake, said Frank Kettle, UAM's director of corporate development. He declined to discuss the reasons.
Lincluden has 16 employees. Current employee positions are expected to remain the same and the company will maintain its investment and operating autonomy, UAM said.
Microsoft ruling doesn't end debate
SAN FRANCISCO - The ruling against Microsoft Corp., Redmond, Wash., last month over benefits for employees classified as contract workers won't bring any immediate resolutions in the long-running legal battle.
According to David Stobaugh, attorney for the plaintiffs, "there were really two different sets of decisions by the appeals court: one for the employee stock options and the other for the pension plan."
The ruling by the 9th U.S. Circuit Court of Appeals, San Francisco, which said the employees were entitled to full benefits, sent the pension benefits issue back to the pension plan administrator, who is to hear arguments from both sides before making a decision.
In the dispute over awarding stock-purchase plan benefits, plaintiffs now need to return to federal court with a calculation of their losses.
The court's ruling potentially could affect the benefits of thousands of people employed as contract workers at Microsoft between 1987 and now. It also carries major implications for other companies that increasingly have contracted out services.
Mr. Stobaugh added Microsoft has the option of asking the court to reconsider its full decision.
Calls to Microsoft seeking comment were not returned.
Mr. Stobaugh said he would not be willing to estimate the amount of benefits in question, noting that when the initial suit was filed there was likely "between 800 to 1,000 people involved." Since that time, the number of employees classified as "contract workers" has expanded significantly.
The original case was brought by employees at Microsoft who, they argued, were entitled to full benefits and should not have been categorized as "contract workers."