City of New Orleans Employees' Retirement System, with $309 million, will review results of an asset allocation study at a special meeting of trustees on Aug. 12.
The study - by Dean Witter Investment Consulting - is expected to result in manager searches in several new asset classes, said Jerry Davis, investment board chairman. In another development, the fund hired First National Bank of Commerce as its new custodian, replacing BankOne.
New York City Employees' Retirement System will hire a law firm in the next few weeks to write a report on the probable results of the lawsuits facing tobacco companies, said Mike Musuraca, a trustee of the $45 billion fund.
A board of trustee subcommittee is interviewing law firms. A report is expected by September, said Mr. Musuraca. NYCERS has about $360 million invested in tobacco company stocks.
The city's general counsel, known as corporation counsel, typically handles legal issues for the pension fund, but the agency is representing the city in its lawusit against tobacco companies, said Mr. Musuraca.
The U.K.'s Committee on Corporate Governance today laid out broad corporate governance principles in a draft report that consolidated recommendations of prior Cadbury and Greenbury committees. The draft states:
- The separation of the chairman's and CEO's jobs is preferred, but not mandatory.
- A lead independent board director should be named; shareholders could share their views with him/her.
- Independent directors should be allowed to be paid partly in company stock.
- The board's responsibility is to shareholders; making them accountable to stakeholders would make the board less effective.
- There's no evidence that Germanic two-tiered boards work better than unitary boards.
- Proxy votes should be tallied before the annual meeting and announced immediately after voting on each resolution has occurred.
- Voting by shareholders should be encouraged, but not required and shareholders should exercise judgment in voting their proxies.
- Small companies should not be exempt from the guidelines, but flexiblity should be used so they are not overburdened.
The draft document is open to comment. A final report should be issued by year-end.
Allegheny County Police Pension Fund, Pittsburgh, is considering the addition of real estate funds, convertible bonds and natural resources to diversify its $30 million defined benefit plan.
Fund officials told Yanni-Bilkey to look at managers that have different investment strategies for equities, said Norbert Kowalski, board member. Currently, Yanni-Bilkey manages small-cap equities and international equities and Babson manages domestic equities for the fund. The fund also has two fixed-income portfolios run by PIMCO.
The board is expected to meet with Yanni-Bilkey in October to discuss what changes could be made to the plan.
Stop & Shop Companies Inc., Quincy, Mass., hired Putnam Institutional Management to run $5 million in small-cap value and $14 million in core growth equities, said Gloria Williams, treasurer.
She would not disclose the source of funding for the hires. The fund has $112 million in assets, according to Nelson's Directory of Plan Sponsors.
New England Pension Consultants assisted.
Police and Firemen's Disability and Pension Fund for the State of Ohio, Columbus, hired Star Bank as custodian, replacing Key Bank.
The change in custodians for the $6.9 billion fund resulted from a bidding process that takes place every two years. The state treasurer's office conducted the search.
The Newey Group PLC pension fund in Tipton, England, hired Lloyds Bank Securities Services as custodian for the £20 million ($32.6 million) fund, which is entirely invested in U.K. securities.
Custody previously was provided by a stockbroker.
Integrated Management Systems Inc., Beaverton, Ore., hired Arnerich, Massena & Associates as the first consultant for its $5 million 401(k) plan.
The firm will oversee the plan's seven fund options and provide fund officials with information on current trends in the industry, said Gwyn Harvey, director of human resources. IMS is open to adding a couple more funds, but nothing has been finalized, she added.
Susan Hannah was hired as CIO of the $720 million Oklahoma State Insurance Fund, Oklahoma City. Ms. Hannah replaces Bill Strecker, who joined Bank of Oklahoma. Ms. Hannah previously worked as assistant director of investments for the state commissioner of the land office