PacifiCorp, Portland, Ore., is reviewing the U.S. equity managers for its roughly $1 billion pension fund, said Kent Grether, manager-pension investments. ``We may make changes,'' he said.
The fund has a 57% allocation to domestic equities with eight managers, all active.
He said a committee is taking a ``bottom-up'' approach of constructing an ideal domestic equity group and comparing it to its managers. He expects a decision on any changes by the end of the year.
The Shell Pension Trust, Houston, sold about $66.2 million of real estate commingled fund units through the Institutional Real Estate Clearinghouse, said Anthony Labozetta, managing director with Cantor Fitzgerald, manager of the clearinghouse.
The $12.4 billion Shell trust sold units in Heitman's Group Trust III and 1211 Acquisition; Equity Enhancement Fund; ERE Yarmouth's USPPI; and Cabot Private Partners. Mr. Labozetta declined to identify the buyers. But industry sources said Praedium Funds, sponsored by Credit Suisse First Boston, bought some of the units.
The transaction was the largest executed by the clearinghouse, Mr. Labozetta said.
Fred Bullough, Shell's manager real estate and private investments, was unavailable.
Pennsylvania Municipal Retirement System, Harrisburg, terminated Putnam as a small-cap growth manager.
The board dropped Putnam because the firm ran afoul of the fund's risk tolerance policy, which states a manager cannot hold more than 5% of its entire portfolio in a single stock, said James B. Allen, chairman of the board. Officials for the $800 million fund were pleased with Putnam's performance and had a good relationship with them, he added. A Putnam spokesman would not comment.
Putnam's $105 million portfolio will be moved to State Street Global's small-cap index portfolio, bringing that account to $450 million. The board may decide to search for another active small-cap manager next spring.