Employees' and Officers' Annuity and Benefit Fund of Cook County, Chicago, might increase its global equity allocation later this year and will increase its allocation to its balanced indexed mandate, said John E. Fitzgerald, executive director.
The $4.2 billion fund already has $35 million in global equity with Brinson Partners, which is invested under a 10% ``basket clause'' that allows the fund to invest in assets otherwise not permitted. But a change in state law now allows the fund to invest up to 10% of its total portfolio in foreign equities. No decision has been made as to how much will be added to global equity or whether the allocation will go to Brinson Partners.
Later this month, an additional $250 million will go to existing balanced index manager Northern Trust Quantitative. The allocation will come from new cash and existing managers. The firm now handles $390 million.
Fulton County Employees' Retirement System, Atlanta, approved an ethics policy limiting gifts from vendors and banning campaign contributions.
Trustees for the $739 million fund cannot accept in excess of $50 in gifts, except those that can be consumed within a 24-hour period, according to the policy. Money managers and consultants that are found to be violating the policy will have their contracts voided and be barred from contracts with the fund for two years. Board members may be forced out or prosecuted if they violate a law. In cases of conflict of interest, board members are asked to abstain from voting and cite the conflict. Landmark Realty came up short in its bid to replace Heitman Financial as the manager of the JMB Group Trust III, said Landmark President Richard Maine.
Landmark, a secondary buyer of partnership interest, proposed last month that the investors in the $438 million fund replace Heitman with The RREEF Funds because of a perceived failure by Heitman to sell properties. Consent of two-thirds of the investors was required to replace Heitman. A tender offer to buy a minimum of $40 million of JMB Group Trust III units also failed, Mr. Maine said. He declined to quantify the margin of failure.
``We are really pleased that the clients stood behind us on this,'' said Mary Ludgin, COO of Heitman Capital Management.
Apollo Real Estate Investment Fund III committed $58 million to Western Realty Development, which will develop real estate in Moscow, said a spokesman for Brooke Group, one of the partners. Western Realty is a joint venture between Brooke Group and New Valley Corp. The Apollo fund is offered by Apollo Management.
Investors in the Apollo fund include The 1199 Healthcare Employees Pension Fund; General Electric Co. pension fund; New York Common Retirement Fund; The Pew Charitable Trusts; The Kresge Foundation; and the endowments for the University of Pennsylvania, University of Pittsburgh, Illinois State University and Dartmouth College.
AMB Investment Management and Erie Insurance Group entered into a co-investment agreement to buy a portfolio of industrial buildings and community shopping centers, confirmed an AMB spokeswoman.
The amount of the commitment was not disclosed, but the AMB spokeswoman said the minimum commitment by an investor is $50 million and AMB could contribute up to 50% of the commitment.
AMB Investment Management LP is a subsidiary of AMB, a public REIT.
