Hedge fund and futures managers reported strong returns in July.
Hedge fund managers reported average returns of 3.8% in July, and 16.1% for the year-to-date period, according to managers in the Hennessee Hedge Fund Advisory Group database. Futures trading advisers were up 6.2% on average in July and 9.8% year-to-date, according to preliminary results at Managed Accounts Reports.
The leading hedge fund styles in the Hennessee universe for July were: technology and international managers, both posting average returns of 8.4%, and financial equities managers, with an average return of 7.8%.
Lagging hedge fund styles were: short-only, with an average negative return of 6.9%; multiple arbitrage, with a return of 0.7%; and convertible arbitrage, with a return of 1.3%.
Interest rate futures and currency markets were big contributors to the strong returns among futures managers, said Lois Peltz, managing editor of MAR, in a statement.
The five-year weighted composite return of 14 INVESCO emerging market funds ranked highest among 32 emerging market fund companies studied by Micropal Emerging Market Fund Monitor, with a cumulative return of 281.7% for the five years ended May 31.
In second place over that period was Henderson Touche Remnant, whose three emerging markets funds posted a cumulative, weighted five-year return of 114.12%. In last place was Impulsora del Fondo Mexico. Its two emerging markets funds fell a cumulative, weighted 10.57% over the period.
American Skandia introduced a family of manager-of-managers mutual funds. Eight money managers were hired to manage portions of the funds, which span the asset class spectrum with portfolio construction and allocation controlled by Skandia. They are: Janus, T. Rowe Price, INVESCO, Founders, American Century, Federated, PIMCO and J.P. Morgan.
The American Skandia Advisor funds are the first fund family to offer a new class of shares for employees leaving qualified retirement plans. Also offered is an optional life insurance product.
SEARCHES & HIRINGS
Saskatchewan Power Corp., Regina, Saskatchewan, is searching for a Canadian equity manager for its C$500 million (U.S. $360 million) pension fund, according to a spokeswoman. Towers Perrin is assisting.
The fund hopes to complete the search by fall and make a decision in October, she said. Details on the funding were unavailable.
Ameritech's pension fund terminated AEW Capital Management as the manager of a $100 million portfolio of commercial mortgage-backed securities and selected Jones Lang Wootton Realty Advisors to take over the portfolio, several industry sources confirmed. AEW President Joe Azrack was unavailable for comment. William Stephens, head of the $16 billion pension fund, also was unavailable for comment.
Sources said AEW's termination was caused by the departure of Clifford Brown in April, who oversaw AEW's CMBS program.
New York City Deferred Compensation Plan hired New York Life and Metropolitan Life Insurance as GIC managers.
Officials for the $2.4 billion plan awarded New York Life $50 million split between two separate contracts and MetLife $25 million to be funded from cash.
East Bay Municipal Utility District Employees' Retirement System, Oakland, Calif., hired Northern Trust as custodian for its $420 million pension fund, said Lloyd J. Sawchuk, treasury manager. The change will be effective Oct. 1. It will replace Wells Fargo, which took over custody of the fund when the bank acquired First Interstate.
Wells Fargo was included in the search.
Airport Group International, Glendale, Calif., selected New York Life Benefits Services as bundled service provider for its combined hourly and salaried 401(k) plans with assets of about $16 million. According to a spokeswoman, the plan previously was unbundled with Bank of America serving as trustee and investment manager, and Wyatt as record keeper. New investment options have not been selected, she said.
The plans were using five investment options provided by BofA.
Jan Mantel joined Dresdner RCM Global Investors as CIO for European equities. He had been an independent consultant for Merrill Lynch, where his duties included advising management on corporate strategy, product and organizational changes required to benefit from EMU.
James Voytko is the new CIO for trust investment assets of PNC Asset Management. Mr. Voytko previously was deputy director and CIO of the investment banking division of PaineWebber