Foreigners sell U.S. stock
Since Aug. 14, foreigners have been selling more U.S. equities than they have been buying, the Lynch, Jones & Ryan RADAR model of portfolio risk shows.
This pattern marks "the first time since early March that we have seen this type of shift," said Steven A. Simon, director.
In itself, the foreign selling would not be unusual at this time of year, said Mr. Simon. "What makes it unusual is that it is happening in step with other negative factors for the U.S. market," he said. These factors include profit-taking in the technology sector, weakness in the bond market and declines in the U.S. dollar. LJR's RADAR model suggests the U.S. stock market should trend lower into the fourth quarter.
Profit-sharing plans merge
CCH Inc. and Wolters Kluwer U.S. Corp., the U.S. unit of the Dutch company that owns both concerns, merged their profit-sharing plans, changing some investment managers, said Edward Carroll, plan administrator.
The new plan combines the $175 million CCH plan and the $25 million Kluwer plan.
The combined plan will use Fidelity as the main provider. The plan will offer nine investment options - six from Fidelity, plus Putnam Voyager equity fund, Templeton Foreign fund and a PBHG small-cap fund.
Fidelity had been the bundled provider for CCH, offering six options. Kluwer's plan had four options, two of which were dropped, while Putnam Voyager was retained and a stable-value fund was transferred to Fidelity.
Ernst & Young, record keeper for the Kluwer plan, was dropped.
Furman Selz deal
Furman Selz Capital Management is expected to remain a separate business unit after its parent is bought by ING Group of Amsterdam.
"Our strategy at this time is to allow the asset management companies that we acquire to keep their own name and identity," according to Lane Mitchell, spokeswoman for ING Barings.
The investment banking and securities business, however, will be integrated into the ING Barings unit.
The 15-year-old boutique has 337 institutional accounts, managing $6.1 billion in institutional tax-exempt assets.
Employee-owned Furman Selz is selling to ING for $600 million in cash over three years.
MCN Energy taps Putnam
The $800 million pension fund of MCN Energy Group hired Putnam Institutional Management as a core growth equity manager, running $48 million. Putnam replaces an unidentified manager dropped for performance reasons, said Larry Schenk, manager trust investments. RogersCasey assisted.
RREEF wins L.A. City
The $6.3 billion Los Angeles City Employees' Retirement System selected, subject to final negotiations, The RREEF Funds for a $20 million investment in undervalued properties.
Townsend Group assisted. LACERS also renewed, subject to negotiations, Townsend's contract for another three years.
Fund invests in REIT
The $11.5 billion Illinois Municipal Retirement Fund committed $50 million to the Prudential Strategic Value Investors Program, a REIT fund. Funding will come from cash. Institutional Property Consultants assisted.
Roanoke adds funds
The $255 million City of Roanoke Pension Plan added three value equity mutual funds. Trustees allocated $6 million each to: Windsor II Fund; MAS Value Portfolio; and The Municipal Employees Equity Fund.
Funding came from Newbold's Asset Management, which was terminated earlier this year.
Fiduciary Capital Advisors assisted.
Managed futures link
The Workplace Health, Safety and Compensation Commission of New Brunswick will invest in a C$50 million (U.S. $36 million) managed futures-linked structured note, said Warren H. Gerow, manager-treasury and investments.
The $585 million (U.S. $421 million) fund will purchase the entire note, which will be issued by TD Securities.
The managed futures' component of the note will be provided by Trilogy Capital Management, which already manages a futures portfolio for the fund, Mr. Gerow said.
Trilogy's existing C$20 million portfolio will be wrapped into the structured note, which probably will not pay a coupon, he said.
Aqua-Chem eyes bonds
The $36 million Aqua-Chem defined contribution plan will add a bond fund, probably from Vanguard, effective Jan. 1, said Ronald Thimm, treasurer.
The plan already has Vanguard's S&P 500 fund as one of five options.
Final selection should be made in December.
Hewitt Associates is assisting the search.
Vanguard using Internet
The Vanguard Group last week started providing full defined contribution plan account transaction capabilities via the Internet.
Participants may exchange shares, request loans and make asset allocation changes.
Fidelity Investments has been providing on-line account transaction capabilities for the past year to 1,000 plan sponsors with nearly 2 million plan participants.
PanAgora wins Sanwa
Sanwa Bank in Osaka, Japan, named PanAgora Asset Management to manage a 5 billion pound ($45 million) global equities portfolio for its pension fund.
Bruce Clarke, PanAgora's chief executive, said funding is expected Oct. 1.
PanAgora manages money in Japan in conjunction with Nissay Asset.
Private equity eyed
The $28 million Appalachian State University Foundation is considering making a small allocation to private equity investments, said Verdola Cook, director of financial operations.
The foundation has had venture capital commitments in the past and is researching how large the new allocation could be and what specific type of investments should be considered.
Yon-Drake & Associates is assisting.
Union plan hires
The $40 million Construction Workers Local 147 hired Putnam Institutional Management to manage a $20 million balanced portfolio.
Putnam replaces Fiduciary Trust, which was terminated in June.
Segal Advisors assisted the selection.