The median account for all categories of PIPER managed domestic equity beat the S&P 500 Stock Index's 7.5% in the third quarter. Small-cap growth led for the period, with the median account returning 17.4%; while the large-cap value median, still ahead of the S&P with 9.6%, had the lowest return for the period, according to the PIPER Managed Account Flash Report.
For the year ended Sept. 30, small-cap value outpaced other median equity accounts and the indexes, returning 46.2%, well ahead of the S&P's 40.5% and the Russell 2000 small-cap index's 33.2%. The bottom median account return for the period was midcap growth equity with 25.7%.
For median managed bond accounts, long-duration bonds led with 5.1% for the quarter, and 13.6% for the year, compared to the Salomon Broad Bond Index with 3.4% and 9.7% for the respective periods. The median limited-duration bond account underperformed all other bond categories, with 2% for the quarter and 7.2% for the year.
The median international equity account easily outperformed the MSCI EAFE index for the quarter and year ended Sept. 30, according to the PIPER report. The median international equity account returned 1.6% for the quarter and 19.6% for the year compared to -0.6% and 12.5% for the index. European equity returns grew strongly for the two periods with 7% and 33.4%, for the median account. The median Pacific Basin equity account tanked at -11.6% and -5% for the same periods.
Northampton County Employees' Retirement System trustees next month will hear a presentation from consultant Peirce Park Group on possible changes to the fund's investment policy. Peirce Park's presentation will analyze the current policy and help trustees to understand the need to diversify, said Barbara Bigelow, director of fiscal affairs in the county.
The $155 million Easton, Pa.-based fund has C.S. McKee as its sole manager and an asset mix of 60% equities, including a small amount in non-U.S. stocks, and 40% bonds.
Mercury Asset Management's pre-tax profits rose to £88.4 million ($148.6 million) for the six months ended Sept. 30, up 15.4% from the same period in 1996. Operating profits from continuing activities in the period rose 26.3% to £72.8 million from the similar period in 1996. Assets under management reached £104.4 billion, up 16.4% from £89.7 billion on March 31. Net new business totaled £3.8 billion. Mercury is the U.K.'s largest pension fund manager.
Investment Technology Group Inc. of New York has formed an alliance with Transaction Network Services. The companies plan to build a computer network that will provide vendors and broker dealers in the financial services industry with electronic links to 100 of the nation's largest money managers handling institutional assets. ITG provides equity trading services and transaction research to institutional investors and brokers.
