Vermont Teachers' Retirement System, Montpelier, will consider making changes to its investment policy at its March 26 meeting, according to James H. Douglas, state treasurer. Some of the changes will be driven by the system adopting the ``prudent person rule'' as of July 1. The system, with nearly $1 billion in assets, would like some additional flexibility to make investments.
Callan Associates is assisting.
Fairfax County (Va.) Police Officers Retirement System and the Fairfax County Uniformed Retirement System are conducting asset allocation studies, said Laurnz A. Swartz, executive director.
The more than $500 million Police Officers Retirement System had 59% of its assets in stocks and the remainder in fixed income at the end of the year, Mr. Swartz said. William M. Mercer is assisting.
The Uniformed Retirement System, with $513 million in assets, had 54% in equities and the rest in fixed income. RogersCasey is assisting.
The studies probably will be completed around midyear. ``This is not driven by anything other than periodic review,'' Mr. Swartz said.
New York State Comptroller H. Carl McCall, sole trustee of the New York State Common Retirement Fund, Albany, said he plans to vote against Marriott International's proposed merger and spinoff. The $95.8 billion pension fund owns 452,100 shares of Marriott, with an estimated value of $36 million.
Marriott wants to spin off its lodging, timeshare and distribution services businesses to shareholders and merge the remaining company with the food service management operations of France's Sodexho Alliance.
While the terms of the deal appear economically favorable, Mr. McCall said, he is concerned the proposal will create two classes of common stock with unequal voting rights. The proposal also asks shareholders to consider governance provisions that the pension fund opposes, including anti-takeover measures.
Mr. McCall said he believes Marriott shareholders should have the chance to vote separately on the merger/spinoff transactions and the governance provisions.
MTS Systems, Eden Prairie, Minn., is evaluating its defined contribution plan in anticipation of a move to daily valuation Jan. 1, 1999. The $160 million plan has six options managed by Piper Capital, Dwight Asset Management, Alliance Capital, Vanguard, Wellington and American Fund Advisers. Watson Wyatt is the plan's administrator. In the next three months, officials should have a plan for what investment and administration changes, if any, will be needed, said Kristina Barclay, compensation and benefits analyst.
Maritz, Fenton, Mo., will add four options to its $80 million 401(k) plan effective July 1. Three American Century Strategic Asset Allocation Funds ranging from conservative to aggressive will be added after plan officials drop a balanced fund that is also managed by the firm. A self-directed brokerage option will be added, allowing employees to chose mutual funds offered through Charles Schwab.
The number of choices will increase to 12 from nine.