University of North Carolina at Chapel Hill is restructuring its $700 million long-term investment pool.
An asset mix will be discussed at the end of this month and probably implemented before May, said Mark Yusko, CIO. The recommended mix: 25% U.S. stocks, 15% non-U.S. equity, 10% absolute return investments, 10% opportunistic hedge funds, 15% private equity, 5% real estate, 5% energy and 15% bonds.
The strategy will increase the amount in real estate, energy, private equity, non-U.S. equity, absolute return and opportunistic asset classes. U.S. bond and stock allocations will be reduced.
The fund also is searching for a small-cap value manager to replace Snyder Capital, which was terminated because of recent changes in its organization. Mr. Yusko expects a firm to be selected shortly to manage the $25 million portfolio. Cambridge is assisting.
Stichting Bedrifjspensioenfonds voor de Metaalnijverheid is considering the creation of separate portfolios of euro-denominated bonds, U.S. bonds and emerging-market debt, said Roland van den Brink, manager, policy and information, at the 27 billion guilder ($13 billion) pension fund.
Rijswijk, Netherlands-based MPNA may hire external managers later this year and also might develop internal expertise, particularly in the eurobond market. Size of the allocations is undetermined. At present, 56% of plan assets are invested in bonds; the strategic asset mix has four-fifths invested in Dutch and German bonds. No major changes in the overall asset mix are envisioned.
State Universities Retirement System of Illinois, Champaign, increased the core bond portfolio assignments of two managers. Pacific Investment Management got an additional $200 million, for a total of $1.2 billion; Chicago Trust received another $65 million, increasing its portfolio to $100 million, said Kenneth E. Codlin, CIO of the $9 billion fund.
The system also raised the mortgage-backed securities portfolio assignment of BlackRock by $75 million, raising it to $325 million. That move was based on a decision to move the system's mortgage-backed securities investments to active management. As a result, the system also eliminated the mortgage-backed component from its bond index fund managed by Barclays Global Investors, reducing that portfolio to about $600 million.
The system also dropped Scudder Kemper, which ran a $65 million core bond portfolio. Ennis Knupp assisted.
Eat'N Park Restaurants, Pittsburgh, might add a mini-cap or small-cap investment option to its $25 million 401(k) plan, said David Wohleber, executive vice president-finance and administration. The plan could make a decision on whether to add it sometime this summer. He said the plan would likely favor Federated Investors, which now provides the plan's six options.