California State Teachers' Retirement System staff recommended one-year contract extensions on the $82 billion system's global asset allocation managers. The three - Baring Asset Management, Brinson Partners and Fiduciary Trust - manage a combined $2.3 billion in assets for the fund. But the managers' long-term role is in doubt.
The Sacramento-based fund's board members decided last year to take a more long-term, less tactical approach to investment. The fund's staff said its investment committee is expected to review what role the global asset allocators will have with the fund, if any, later this year. Board members are expected next Wednesday to grant the extensions that will end in April 1999.
Standex International Corp., Salem, N.H., is considering adding a high-yield bond allocation to its fixed-income portfolio.
If approved, the new allocation would be managed by either State Street Bank or Delaware Investment Advisors, the fund's current bond managers. Delaware now manages $16 million in global bonds and State Street runs the rest of the $56 million portfolio in U.S. bonds for the $161 million defined benefit fund. Jim Mettling, director of human resources would not comment further.
New England Pension consultants is assisting.
New net cash flow into mutual funds was $61.29 billion in January, compared to $19.7 billion in December, according to monthly data from the Investment Company Institute.
Bond and income funds had inflows of $11.3 billion in January, compared with $5.56 billion in December. Only global bond funds showed a negative cash flow, losing a net $339.6 million in January. Stock fund cash flow was $14.58 billion in January, down from $15.45 billion in December. International stock funds had outflows of $548.2 million, compared with an outflow of $1.31 billion in December.
