Lynn (Mass.) City Contributory Retirement System terminated Investment Advisers Inc., which managed $23 million for the system in domestic midcap to large-cap growth stocks because, ``We didn't think the management was up to par,'' said Barbara Belliveau, executive secretary of the $112 million fund.
The system has invested the money temporarily in a Russell 1000 Growth Index fund with State Street Global, said Alison Ellsworth, the Segal Advisors consultant who is assisting.
Ms. Ellsworth also cited a high turnover of portfolio managers at the firm as a reason for the termination. Investment Advisers executives did not return calls seeking comment.
Trustees for the Associated Grocers Co. of St. Louis, Missouri's defined benefit plan will decide in the next 30 to 45 days on a new investment manager.
The $11 million plan uses Boatmen's Trust as the sole investment manager, running a balanced portfolio, and custodian. Larry Steelman, president of Associated Grocers, expects the fund will use Bankers Trust as custodian and possibly an arm of NationsBank as the new sole investment manager. He named TradeStreet as a possibility. Nothing has been finalized, he added.
Fund officials are now reviewing and interviewing managers. Boatmen's recent purchase by NationsBank and exit from the custodial business is what prompted the company to look at other management firms.
The dozen top U.S. commercial banks are moving aggressively into property construction lending, an informal survey by Greystone Realty shows. Only half of the banks were lending for development three years ago. Today, 80% of them are, according to the Greystone survey. Lenders are most interested in suburban offices, neighborhood shopping centers and garden apartments. Offices in central business districts hold less appeal.
Almost all said they would make a construction loan without a commitment of permanent take-out financing, although 80% said they also would provide permanent financing. Half said they would make non-recourse construction loans. The banks will lend, on average, 85% of the development cost of a project, or 75% of the projected stabilized value, according to the survey.
SEARCHES & HIRINGS
Denver Public School Employees' Pension & Benefit Association soon will start a search for a consultant to conduct an asset allocation study, said Darrell Allen, investment officer.
The asset review of the $2 billion fund was prompted by a pension obligation bond offering, which boosted the plan to fully funded status. RFPs have not been issued, but Mr. Allen hopes a consultant will be chosen by mid-October. The current asset mix is 30% domestic equity, 30% corporate bonds, 15% mortgages, 10% international stocks, 10% real estate equity and 5% private equity.
State of Florida Deferred Compensation Plan, Tallahassee, selected eight investment providers for the $850 million plan, and might select one more in another week.
Two - Dreyfus and Fidelity - are new; Great American Reserve was terminated. The plan retained Great Western Bank, T. Rowe Price, VALIC, Nationwide Insurance, Great West Life and Security First.
Officials will decide in the next week whether they will re-hire Aetna, another incumbent, said Kandi Hicks, administrator.
The number of investment options to be offered to employees will be decided during contract negotiations, Ms. Hicks added.
Ohio State Highway Patrol Retirement System, Columbus, hired two international equity managers for its $570 million pension fund, said Debra Pelley, executive director. Bank of Ireland will be assigned $20 million and Templeton, $10 million. Both will manage active major-market international equities. Funding will come from cash. DeMarche assisted in the searches.
Community Foundation of Texas, Dallas, hired Boston Partners Asset Management to manage $33 million in large-cap value domestic equities. Boston Partners is replacing another management firm. Jim Haymes, administrator of investment operations at the $300 million Texas investment fund, wouldn't say which firm had been terminated. Large-cap value is a new style for the foundation. SEI Investments assisted in the search.
Arizona Pipe Trades Pension Trust, Phoenix, allocated $10 million to NWQ Investment Management for a small-cap equity mandate and another $10 million to Munder Capital Management for midcap equities. Both were existing equity managers for the $200 million fund.
David L. Eisenberg was hired by John Hancock Funds as senior vice president, directing the company's investment policy analysis, a new position. He was a senior vice president for New England Pension Consultants. No replacement has been named yet