Santa Clara (Calif.) County Transit District has a recommended asset allocation from consultant William M. Mercer, said Manny Bagnas, investment program manager.
The new mix is 30% large-cap value stocks; 10% small-cap value stocks; 10% international large-cap stocks; and 50% domestic fixed income. The suggested asset allocation has yet to be approved by the $150 million pension fund's board. The fund currently has 4% domestic equity, 93% U.S. bonds and 3% cash. Final approval is expected sometime in April.
Interpublic Group of Companies, New York, plans to freeze its $115 million defined benefit plan March 31, which might prompt changes to the company's $300 million defined contribution plan, said Alan Forster, vice president and treasurer.
The plan has seven options, with the possibility of adding a self-directed brokerage option this summer, he said. The company is in contract negotiations with a firm Mr. Forster would not name. He said he does not know when any more changes would take place.
Four investment options were added to the plan last year.
Parker Global Strategies will manage a $366 million Japanese retail fund. Hedge fund managers will run 75% of the fund; futures fund managers, 25%.
The Protection II Fund will pay a 2% dividend and offers a guarantee of principal at maturity, three years hence.
Virginia Reynolds Parker, president, said managers have been selected for both components, but their names aren't being released until all contracts are signed. Dean Witter Futures and Currency Management Inc. will select futures managers.
Ms. Parker said her firm is considering a U.S. version of the fund. Target investors would be institutions and high-net-worth investors.
