ABB Inc. pension executives might form a money management operation to offer its market-neutral manager process to other pension funds, said Larry Morgenthal, manager of pension and thrift management.
While the effort has not been finalized, the plan is to offer an equitized market-neutral fund-of-funds using the managers in Stamford, Conn.-based ABB's U.S. equity allocation, Mr. Morgenthal said. Eric Wood, director of pension and thrift management, also would work on the operation.
``We've been doing it 61/2 years with good numbers,'' Mr. Morgenthal said. ABB has $110 million in the strategy, he said.
Investment managers selected by ABB, which has about $2.4 billion in retirement assets, go long and short U.S. stocks, seeking to capture pure alpha. The managers then equitize their positions with S&P 500 Index futures, he said.
Ontario Teachers' Pension Plan Board, North York, Ontario, created a C$140 million (U.S.$101 million) allocation to a passive investments tied to the Goldman Sachs Commodity Index, said Robert Bertram, senior vice president, investments for the C$54 billion fund.
The move, which he said was a toe in the water given the size of the allocation, was done to improve the asset mix, as fund officials seek ways to diversify assets.
The index portfolio will be run internally, primarily using the GSCI futures contracts traded on the Chicago Mercantile Exchange, although swaps may be used on occasion, he said.
State Universities Retirement Sysem of Illinois trustees will consider Thursday whether a revised fee proposal by VALIC will be low enough to add the firm to its new optional retirement program, said James M. Hacking, executive director.
VALIC's revised proposal brings its expense ratio, including fees and other expenses, down to 115 or 120 basis points from its original proposal of 140 basis points, which the trustees had rejected.
By contrast, the three investment managers the Champaign-based system hired for the program have lower ratios: ICMA at 85 basis points, TIAA-CREF at 31 basis points, and Aetna at 105 basis points.
Ibbotson Associates and CDA/ Wiesenberger are joining forces in offering mutual fund analysis and education.
Ibbotson's Fund Strategist returns-based style analysis software will include CDA/ Wiesenberger data beginning in January. CDA/Wiesenberger will include Ibbotson's style analysis in its fund sales software.
The two firms also will collaborate on Ibbotson's mutual fund investing seminars.
Hennessee Hedge Fund Advisory Group expanded its hedge fund advisory services to investors with less than $5 million of investible assets. The serivice will give smaller investors access to 10 pre-selected managers. The fees will be 1% annually, its standard fee for individual consulting, according to a statement.
AEW Capital Partners II, an investment fund managed by AEW Capital Management, committed $25 million to Benchmark Assisted Living, a spokesman said. Benchmark will buy, develop and operate senior housing throughout New England.
The company plans to invest $100 million in senior housing over the next five to seven years. AEW will evaluate each Benchmark deal individually, said a spokesman.
International Equity Partners, in partnership with J.M. Financial Group, an Indian investment advisory firm, has launched the Indian Equity Fund, an open-end investment fund for institutional investors interested in investing in Indian stocks.
The fund intends to invest in the most attractive stocks within the IFC Investible India Index, which includes 78 of the largest and most liquid Indian stocks.