Indiana State Teachers' Retirement System, Indianapolis, set the asset allocations within its broad 36% allocation to U.S. stocks: 25% of the domestic equity allocation will be indexed to the S&P 500; 25%, an enhanced indexed portfolio; 10% each to active large-cap value and large-cap growth portfolios; 15% to a midcap broad manager; and 7.5% each in small-cap value and small cap-growth stocks.
Robert Newland, investment officer for the $4 billion fund, said manager searches probably won't begin until next year; the board hasn't even decided which allocation will be handled first.
Next up is adoption of a new investment policy statement, Mr. Newland said.
Callan Associates assisted.
Ventura County Employee Retirement Association, Ventura, Calif., will begin an asset allocation study in December and plans to finish it by February, said Van Perris, retirement manager. Asset Strategy Consulting will conduct the study for the $1.6 billion fund.
The current asset mix: 40% domestic equity; 10% international equity; 20% domestic fixed income; 10% global bonds; 5% real estate; and 15% U.S. tactical asset allocation strategy.
Plymouth County Retirement System, Plymouth, Mass., is conducting a search for a consultant that will help officials decide whether to hire more money managers or allocate additional assets to existing managers, said John McLellan, board chairman of the $300 million fund.
The incumbent is Hannah Group, which will be allowed to respond to the RFP, Mr. McLellan said. He noted Hannah has undergone a number of personnel changes.
David Shulman, chief equity strategist with Salomon Brothers, is predicting a market downturn, citing the financial crisis in Asia as a threat to U.S. corporate earnings. Mr. Shulman has been very bearish on the market since August, after being moderately bearish since the beginning of the year.
``We contend that the quarter just ended will come to represent the last quarter in the cycle of double-digit earnings growth as the showdown in Southeast Asia, currency translation problems and rising domestic wages begin to weigh in on income statements,'' he said.
``When major companies like Sears Roebuck, Intel and Boeing report lower-than-expected earnings, or give negative forward guidance, something is awry.''
Argentine pension funds' net investment in equities amounted to US$40.8 million in September, compared with an average of $78.6 million per month for the 12 months ended Sept. 30, according to Salomon Brothers' Latin American equity research.
September's amount represented only 14% of total revenues, below the 27% of revenues invested in August and the second-lowest this year, after April. The funds' allocation to equities remained at 23% in September - the same level as in August
Many funds were taking profits on shares of oil company YPF, whose price had increased sharply, said analyst Martin Ruete Jr. in Buenos Aires. In September, the funds divested $23.9 million of YPF shares.
