The Dow Jones industrial average today plunged 183 points at midday before recovering somewhat to close down 92.09 points, to 7847.02. The S&P 500 fell 11.07 points, to close at 944.18. The Nasdaq composite fell 32.78 points, to close at 1666.88.
All figures are preliminary closing numbers.
State of Connecticut Trust Funds, Hartford, terminated J.P. Morgan Investment Management as a manager of $150 million in Japanese equities, said a spokesman for the $15 billion pension fund.
J.P. Morgan's performance since inception on March 31, 1996, was -16.1%, compared with -13.6% for its benchmark, said the spokesman. The assets were transferred to DSI International, which also manages a Japanese equities mandate for the fund.
Representatives from J.P. Morgan were unavailable for comment.
Pepperdine University, Malibu, Calif., raised is allocation to alternative investments to 30% from 20% of the total fund and reduced U.S. equities to 30% from 40%.
The $215 million endowment fund is looking for managers for absolute return strategies, private equities and inflation hedge strategies, said Clariza Mullins, associate treasurer. It may take a year to find suitable managers, she said. Its five domestic equity managers were retained, but their allocations were reduced.
The endowment hired Analytic TSA Global to manage temporarily the $20 million. The endowment equitized the cash, employing Analytic TSA's global TAA strategy.
Cambridge Associates is assisting.
The PBGC reached an agreement with K&F Industries Inc., New York, requiring the maker of aircraft components to contribute $4.5 million by year end to its pension plans.
The plans are underfunded by nearly $25 million. The PBGC also obtained access to a $4.5 million letter of credit from the company's lenders and a $40 million second security interest in company assets in case it has to make claims related to the plans.
The agreement will remain in effect for five years, and until K&F has achieved investment grade ratings or completed two years without any underfunding.
Forstmann-Leff International created a global derivatives strategies group and hired commodity index specialists Gregory S. Oberholtzer and M. Scott Manolis as managing directors. Both previously worked as vice president and director of the commodity portfolio management group of Jefferies & Co.
The new group will offer institutions exposure to financial and tangible assets through derivatives-based and index-based strategies, as well as tailored hedging strategies.
State Loan and Investment Board, Cheyenne, Wyo., is expected to approve a new asset allocation at its Nov. 6 meeting.
An allocation study, originally expected to be finished in September, was held up because Gov. Jim Geringer requested consultant R.V. Kuhns make legislative directed investments a separate asset class. The $3.2 billion fund invests $400 million in loans to communities that fall under the LDI designation.
The fund also could establish its first midcap equity portfolio as a result of the study, said Steve Degenfelder, deputy director.