V.F. Corp,, Reading, Pa., will consider searching for U.S. small-cap equity and bond managers, said Louis Fecile, vice president-employee benefits.
Searches have yet to be approved, but could start as early as late April, he said. The company completed an asset allocation study for its $525 million defined benefit plan late in 1997. The new mandates would help to diversify the fund, he added. Hewitt is assisting.
City of Dearborn (Mich.) Retirement System may search for a consultant and probably will start an asset allocation study in the next three months, said Marcel Pultorak, finance director for the city.
Mr. Pultorak plans to look at local firms to assist with the study before deciding to do a full-scale consultant search. The plan has $340 million in assets and has an asset mix of 65% U.S. stocks, 30% bonds and 5% real estate.
District of Columbia Retirement Board, with $4.8 billion in assets, placed Denver Investment Advisors, a U.S. small-cap growth stock manager, on its watch list because its performance has lagged the benchmark, said Sheila Morgan-Johnson, CIO. The board had $221 million with Denver at the end of 1997. For the year ended Dec. 31, Denver reported returns of 16.1% vs. 22.5% for the Russell Midcap growth index, Ms. Morgan-Johnson said.
The board also is ``closely monitoring'' Cowen Asset Management because of its erratic performance and might terminate it if its performance does not substantially improve in the near term, she said.
Cowen manages $90 million in U.S. small-cap value stocks for the fund. Its returns have lagged the Russell 2500 benchmark by 470 basis points since December 1994, she said.
Aliant Communications, Lincoln, Neb., terminated small-cap growth equity manager Driehaus Capital. Mike Tavlin, vice president-treasurer, would not comment on the reason for Driehaus' termination, but said the move followed the $240 million pension fund's quarterly review.
Aliant also allocated money to a small-cap value stock fund from DePrince, Race and Zollo, which already manages large-cap to midcap equities for the fund. The money came from a reallocation, Mr. Tavlin said. The firm will manage the portfolios separately.
Mr. Tavlin declined to reveal the dollar amounts of any of the portfolios. Performance Analytics assisted.
Charterhouse Group International closed its Charterhouse Equity Partners III fund, raising $1 billion. Investors include -Pennsylvania State Employes' Retirement System and the Shell Pension Trust Limited, said a partnership spokesman.
Charterhouse III will form partnerships with entrepreneurs to build middle-market businesses.