New York State's public employee pension funds would be allowed to increase their investment in domestic equities to 70% from 60%, according to the budget bill passed during the final hours of the 1997 session Wednesday. The measure now awaits Gov. George Pataki's signature.
The measure also would increase the basket clause to 15% from 7.5%. A basket clause restricts non-qualified, usually private, investments to a certain percentage of a pension fund's total assets.
East Bay Municipal Utility District Employees' Retirement System, Oakland, Calif., may search for a small-cap value manager as a result of a review of its four domestic equity managers, said Lloyd J. Sawchuk, treasury manager for the $420 million pension fund.
The review includes a focus on small-cap to midcap value and growth managers and possibly increasing the allocation to one or both areas.
Fund officials should make a decision in September. If the fund decides to move ahead, ``it would probably mean adding another manager'' and doing a search, Mr. Sawchuk said. Mercer is assisting.
East Bay Municipal is evaluating Denver Investment Advisers, which handles small-cap to midcap growth; Fidelity, large-cap growth; and Sturdivant and Institutional Capital, both large-cap value.
Amesbury (Mass.) Town Retirement System may be starting a search for a small-cap equity manager and REIT manager within the next month, said Sheryl Trezise, retirement administrator.
The $17 million fund probably will make small allocations to the new asset classes, slated to be funded from current stock and bond investments.
The search would be part of the restructuring of the fund that started earlier this year.
Hannah Group would assist in the search.
Median growth equity managed portfolios outperformed the S&P 500 in the quarter ended June 30, but underperformed for the year, according to the most recent PIPER report.
The overall median growth portfolio returned 17.9% for the quarter and 22.8% for the year, compared with 17.5% for the quarter and 34.7% for the year for the S&P 500.
The median small-cap growth portfolio was top ranked for the quarter, returning 18.9%, but worst for the year, returning only 10.4%.
The worst performing category for the quarter was large-cap value, returning 14.7%. That category was the second best for the year, returning 30.7%. The median large-cap core equity managed portfolio topped the one-year returns, with 34.4%.
Hawaiian Trust Co. Ltd., Honolulu hired State Street Bank to provide custody and other back office services for $8 billion of the trust's $12 billion holdings.
Hawaiian Trust previously used numerous banks to handle the back office duties and has done some processing internally. State Street, which was not one of the banks previously used, will provide custody, securities processing, trust accounting, fee processing and disbursement processing services. Trust executives said State Street provides a cost savings.
SEARCHES & HIRINGS
Federal Express Corp., Memphis, hired Oak Ridge Investments as a midcap domestic equity manager for its more than $3 billion defined benefit fund.
The amount of the assignment wasn't available.
Staffordshire County Council, Stafford, England, with assets of £1.2 billion ($1.9 billion), hired Northern Trust London as custodian for the fund's domestic, Japan and Pacific Basin equity investments, confirmed Richard Tettenborn, county treasurer.
The individual managers previously provided custody services for the assets they oversaw on behalf of the council, said Mr. Tettenborn.
Northern Trust previously served as custodian for the fund's North American and European assets.
Amerisure Insurance Co., Southfield, Mich., hired Lincoln Capital Management to run $20 million in an fixed-income index portfolio for its $40 million defined benefit plan.
The assets had been run internally, said Dick Saranen, vice president of investments.
Robert R. Evans joined Trust Company of the West in a newly created managing director position. He will serve on TCW's asset allocation team and sit on all investment committees.
Mr. Evans formerly operated Evans Associates, a consulting firm to endowments, small- and medium-size pension funds and investment management organizations.
Prior to that, he was consulting CIO for the State of Connecticut Retirement and Trust Funds and managed retirement plans for J.C. Penney and Xerox