TruServ Corp., Chicago, is conducting an asset liability study of its defined benefit plan. The plan now has $200 million in assets as a result of last year's merger of TruServ with Cotter Co., Chicago, said Paul McBride, corporate manager, retirement plans.
Buck Consultants will work on the study, which is expected to be finished in summer or fall. Further information was unavailable.
Global emerging markets managers in the universe of InterSec Research posted a median -2% return in 1997, far above the -12.1% return of the MSCI Emerging Markets Free index for the year.
Managers' results ranged from a gain of 10.3% to a loss of 22.3%. For the median managers, according to InterSec, correct market allocation added to the median manager's showing, producing 10.8% of value-added return; while stock selection was a drain, producing -3.5% of value-added return.
Relatively low allocations to Malaysia's poor-performing market produced the largest single source of value-added return, InterSec found. But many managers also benefited from their overweighted holdings in strong performing markets such as those of Russia and Hungary. Mangers also generally overweighted Mexico's and Brazil's markets.
Currency managers posted a 12.5% average return for 1997, with 46 programs in the 54-program Parker FX index universe reporting positive results.
The median return was 11.48%. Average performance was 5.9% on a risk-adjusted basis. The top performers were: John W. Henry, with 71.4% for its International FX Program; Dean Witter FCM FX Portfolio up 53.8%; and Tamiso & Co., gaining 44.2%. Adjusted for risk, the top performers were Allied Irish Capital, with 18.9%; John W. Henry, up 17.2%; and Dean Witter's Cornerstone IV Program, up 12.1%.
