The Federal Reserve left short-term interest rates unchanged today, as expected by market participants.
The bond market fell slightly after the announcement, about one-eighth of a point on the benchmark U.S. Treasury bond as of 2:30 p.m. EDT, said Mark J. Giura, vice president for Van Kampen American Capital.
Stocks fell more sharply, giving back about half of the day's previous gains.
ValueQuest had the top international equity return in the second quarter PIPER survey. The firm's international contrarian value equity strategy returned 17.65% for the quarter ended June 30. Two portfolios from Capital Guardian scored second and third in the survey. The firm's international composite account returned 16.13% for the quarter; its commingled fund returned 15.99%.
The PBGC reached a preliminary agreement with Fremont Partners and Kerr Group Inc. ensuring the continuation of the Kerr pension plan and providing for accelerated funding of the pension plan. Under the agreement, Kerr will continue to be responsible for the pension plan, which covers 5,600 workers and pensioners, and is underfunded by about $41 million.
Kerr, which is being acquired by Fremont, a leveraged buy-out firm, also will contribute $3.5 million to the pension plan when the acquisition is completed, and $35.5 million periodically until January 2003. When the final agreement is signed, the PBGC will drop its efforts to take over the pension plan, but will continue to be second in line only behind Fremont's primary lenders for all of Kerr's assets.
Tucson Supplemental Retirement System trustees Oct. 23 may approve a new asset allocation and decide whether to do manager searches, said Mike Parisi, treasury administrator.
The changes would be based on the results of an asset allocation study now under way by Hewitt Associates. If the study isn't approved at the October meeting, action may be taken the following month.
The $378 million fund's current asset mix is 40% U.S. large-cap equities, 10% U.S. small-cap stock, 28.5% U.S. bonds, 9% international stocks, 7.5% international bonds, 5% real estate.
U.K. life insurance companies outsource less than 5% of their £770 billion ($1.23 trillion) in assets, and show little sign of change, a survey conducted for Templeton Investment Management found.
The survey of 19 CIOs of British life insurers flies in the face of conventional wisdom that insurers will externalize money management, said Douglas Adams, business planning director, Europe. In comparison, U.S. insurers have outsourced 17.4% of $2.3 trillion in assets.
More than half of U.K. insurance outsourcing - worth some £1 billion to £3 billion a year in new cash flow - will be invested in emerging markets, the survey found. The bulk of the remainder will be invested in U.K. equities.
Manchester (Conn.) Retirement Allowance Fund will discuss adding a fixed-income manager and other alternatives at a Sept. 15 board meeting. The Hannah Group will make recommendations to trustees of the $80 million fund.
Following an increase in equities due to recent stock market gains, the additional manager will help bring the fund's asset allocation back into line, said Alan Desmaris, director of finance.
Commercial Intertech Corp., Youngstown, Ohio, selected American Century Investments as bundled service provider for its $36 million 401(k) plan, said John Chewning, manager of corporate compensation.
American Century will provide 11 American Century mutual fund options, as well as record keeping, administration and communications. Mr. Chewning wouldn't reveal Commercial Intertech's previous providers.
Anderson Memorial Hospital, Anderson, S.C., hired INVESCO to manage $3 million in an international equity separate account for the hospital's $40 million defined benefit plan. Funding will come from cash.
Morgan Keegan assisted.
Horace Elkins, administrator of the $600 million City of Baton Rouge (La.) & Parish of East Baton Rouge Employees' Retirement System, retired after 25 years with the city. Jeff Yates, assistant administrator, was named administrator.
John E. McHugh III joined Sterling Johnston Capital Management as a portfolio manager/research analyst, a new position, according to Scott Johnston, chairman.
Mr. McHugh was with Emerging Growth Management, where he worked as an analyst on institutional accounts and the firm's hedge fund. Kelly Barlow replaced Mr. McHugh at Emerging Growth, said Michael Jackson, chairman. Mr. Barlow was formerly an analyst/portfolio manager with Wells Capital Management