New York City Teachers' Retirement System trustees today terminated WR Lazard & Co. as a fixed-income manager, said Jon Lukomnik, deputy city comptroller. WR Lazard manages a $262.2 million government bond portfolio for the $20.6 billion fund,
The $32.9 billion New York City Employees' Retirement System is expected to hold a vote today via telephone, and approve dropping WR Lazard. The firm manages a $228.3 million government bond portfolio for NYCERS.
City Comptroller Alan Hevesi had recommended both funds terminate the firm.
Lincoln Capital Management, an existing government bond manager for the two pension funds, will take over management of the WR Lazard portfolios, said Mr. Lukomnik.
Arlington County Employees' Retirement System, Arlington, Va., today terminated JMC Capital, a U.S. small-cap growth stock manager, and replaced it with Trinity Investment, a core small-cap equities manager to run the $80 million portfolio.
The fund, with about $800 million in assets, terminated JMC for a combination of performance and style reasons, said Bruce O. Kallos, administrator. Paul C. Mitchell Jr., JMC's director of marketing, declined to comment, explaining the firm had not received any notification from the pension fund.
Tri-State United Food and Commercial Workers, Norristown, Pa., will consider at its December meeting adding a 3% to 4% allocation in venture capital, microcap equity or real estate to its defined benefit fund's current mix. Fund officials plan to meet with New England Pension Consultants to discuss possible changes to the $360 million union fund's investment objectives, said Peter Huegel, trustee. The fund now has 60% stocks and 40% bonds.
Littlejohn & Co.'s Direct Investment Fund closed today with $205 million in commitments. The fund takes control equity positions in companies in the $100 million to $300 million revenue range that can benefit from an operational or financial restructuring or are part of a consolidating or restructuring industry, said Angus Littlejohn Jr., chairman.
Investors include the pension fund for E.I. du Pont de Nemours & Co.; the pension fund and endowment for the Massachusetts Institute of Technology; GE Capital; Cash Capital; and McDonald Investment.
Ohio Bureau of Workers Compensation, Columbus, is expected to allocate up to $500 million to 10 smaller firms that are not eligible to take part in the fund's bond and equity manager searches. Callan is assisting.
The $18 billion fund will issue RFPs for emerging managers in all asset classes, including alternatives, by the end of this month, said Bob Cowman, CIO. The fund is conducting the bond and equity searches concurrent with the minority searches. Mr. Cowman expects a decision to be made in the emerging firms search in the first quarter of 1998.
Merrill Lynch today announced it hit $1 trillion in private client assets in the third quarter, making it perhaps the first financial service company to pass that milestone. Assets passed to Merrill Lynch grew an average of $250 million every business day over the past two years.