Knoxville (Tenn.) Employees Pension Fund is conducting an asset liability study that is expected to be finished mid-December, said Mike Cherry, executive director. The results of the study probably will be discussed at the board's January meeting.
The $650 million fund now has 60% in equities (10% of which is in international equity) and 40% in domestic bonds.
The fund also is reviewing RFPs from its ongoing custodian search. SunTrust, the current custodian, was included. A decision is expected within 60 days.
Separately, Bryan, Pendleton, Swats & McAllister was hired as a record keeper for the city's new $100,000 defined contribution plan. Investment options will probably not be chosen for another couple of years or until the plan is larger, Mr. Cherry said. Employees now are buying individual units of the defined benefit plan in a ``unitized trust'' arrangement.
Reynolds & Reynolds Co., Dayton, Ohio, will select new investment options for its $350 million defined contribution plan in the next 30 to 45 days, said Craig Currier, director of corporate pension administration. Officials will select nine equity funds, a bond fund, a balanced fund and two international or global funds.
The newly structured plan also will have a second tier of funds plus a managed brokerage account. AON Consulting will assist. The plan now has 12 options.
The fund also hired Invesco to provide record keeping and administration in a move to daily valuation, which had been done in-house.
First Chicago NBD and Tokio Marine and Fire Insurance will form a joint venture offering derivatives and related products to Asia-based investors. Called First Chicago Tokio Marine Financial Products Ltd., the venture will be based in Tokyo.
The venture will be funded with $75 million in capital, and plans to launch in early 1998.
Moody's Investor Services is downgrading its rating outlook for REITs to relatively stable in 1998 from strongly positive in 1997, accord to its 1998 REIT Industry Outlook. The change is attributable to: increased merger activity among REITS; expansion into new businesses by the REITs; and higher prices being paid for properties.
Moody's forecasts a ``preponderance'' of positive rating actions for REITs over the next year, although they are not expected to continue at their recent pace.
State of Wisconsin's deferred compensation plan expects to select a stable value fund manager by May. The Madison-based fund also expects to add a mutual fund window option next year. The $707 million plan now has $129 million in stable value asset contracts with Great West Life. The search will be conducted to either replace Great West or add a second stable value option.
The plan will issue an RFP for a stable value fund manager in January.