Chicago Park District Annuity & Benefit Fund, Chicago, is working to get state legislation passed to allow the fund to use a prudent person rule, said Joseph Fratto, executive director of the $570 million fund.
The Park District would probably raise its equity asset allocation 5% to 10% under a prudent person rule, he said.
State law now limits the fund to 40% of book value to be invested in equities, although a ``basket clause'' allows a few more percentage points of assets to go into stocks, he said.
The Illinois legislature has accommodated other public pension funds in the matter. Both the Chicago Municipal Employees' and Chicago Laborers' Annuity & Benefit Funds were allowed to adopt the prudent person rule last year. Mr. Fratto said it is too soon to estimate how likely it is that the state will change the law.
A third of American investors say the U.S. Social Security system is in a crisis, and another half of those interviewed say it has major problems, according to the latest Index of Investor Optimism released today.
Most investors do not expect to get all the Social Security benefits to which they are entitled, according to the poll, a joint effort by Paine Webber and the Gallup Organization.
PanAgora Asset Management and DG BANK agreed to form a Frankfurt-based joint venture targeted at institutional investors in German-speaking countries
Under a memorandum of understanding, PanAgora will develop international investment products geared toward institutional investors in Germany, Austria, Switzerland and Eastern Europe, while DG BANK Deutsche Genossenschaftsbank will be charged with distribution.
The RREEF Funds and Parkside Senior Services formed a partnership to market investments in senior citizen housing to current RREEF investors.
Parkside intends to invest $800 million alongside RREEF investors over the next 24 months in a fund that will invest in the acquisition and development of senior communities. Parkside officials declined to say how much they hope to raise from RREEF investors.
Marketing will begin in the second quarter with an initial closing being made in September.