Attorneys for Unisys Corp. employees and retired workers today appealed a Nov. 24 federal district court decision that Unisys did not breach its fiduciary duty when it purchased GICs from Executive Life for its 401(k) retirement plan in 1987 and 1988.
The federal district court ruled Unisys' purchase of $200 million of Executive Life GICs was prudent and that the 401(k) plan had been properly diversified. The court also ruled participants had information and time to bail out of the GICs when Executive Life's financial condition became shaky and before the company was put into receivership in 1991.
The case, which was tried in Philadelphia by the U.S. District Court for the Eastern District of Pennsylvania, now goes back to the 3rd Circuit Court of Appeals.
State Universities Retirement System of Illinois, Champaign, will end currency hedging for its $9 billion pension fund early next year, said John R. Krimmel, associate investment officer.
Mr. Krimmel said trustees concurred with staff and consultant findings that hedging provided little benefit to the system. The system estimates the hedging cost $1 million a year.
The system had hedged 50% of the currency exposure of its $740 million in active non-U.S. portfolios and 50% of its $763 million in international index funds. Active international managers, however, will be allowed to hedge currency on a defensive basis.
Minnesota State Board of Investment, St. Paul, will be in the market in the first half of 1998 for investment providers to the State Deferred Compensation Plan. Contracts for the current providers will expire in June 1999, said Howard Bicker, executive director of the $38 billion state board.
The board will issue a request for proposals early next year. The search is being conducted because the contracts for the existing providers expire in June 1999.
Greater Kansas City (Mo.) Foundation will decide whether to search for a U.S. fixed-income manager in April, said Yvonne Kean, vice president of finance.
The $450 million foundation had originally planned to have a new passive bond manager with a $7 million allocation on board by the end of the year, but decided to continue to monitor its current manager's performance before making a final decision. The firm, which Ms. Kean would not name, has had improved performance recently, she said.
Chicago Municipal Employees Annuity & Benefit Fund's board of trustees will hear a presentation from Becker, Burke on changing the fund's asset allocation at its Jan. 20 meeting. The presentation is part of the system's 1998 asset allocation study.
Decisions on its future money manager lineup and whether searches will be needed are expected to be made at the board's April 16 meeting. The $4.6 billion fund's current allocation is 52.9% U.S. stocks, 3.3% international stocks, 34.2% U.S. bonds, 0.1% convertibles, 4.3% cash, 2.4% real estate and 2.8% venture capital.
Paul Silvester, treasurer of the State of Connecticut and the sole fiduciary of its $17 billion Retirement & Trust Funds, Hartford, is the latest pension executive to write the SEC to protest its proposed rule changes for shareholder proxy resolutions.
Mr. Silvester argued that the changes would hinder the ability of shareholders to propose resolutions concerning legitimate corporate governance and social issues.