Chrysler Corp., Auburn Hills, Mich., increased the small-cap allocation of its $17 billion U.S. pension plan to 6% from 4% of the total fund, said Mark Schmid, director of pension fund investments. The change follows an in-house asset mix review.
Chrysler soon will begin a U.S. small-cap equity manager search for its $17 billion U.S. pension plan. The fund hired Callan to conduct the search, which could result in the hiring of both a small-cap value manager and small-cap growth manager.
Alternative investments and the real estate allocation also will increase by two percentage points. No additional managers are expected to be hired, Mr. Schmid said.
The Senate yesterday approved, by a 51-49 vote, a nonbinding measure that calls for setting aside any federal budget surpluses to establish individual Social Security accounts.
The measure, introduced by Senate Finance Committee Chairman Sen. William V. Roth Jr., R-Del., would direct the committee to draft legislation this year. Mr. Roth's resolution was co-sponsored by eight senators on both sides of the aisle.
IBJ Schroder Bank & Trust acquired Delphi Asset Management, an investment manager with about $1 billion in assets under management. Terms were not disclosed.
About 10% of Delphi's assets are managed for foundations; the rest are high-net-worth clients. Delphi Asset also manages two hedge funds, a domestic fund and an international fund.
IBJ Schroder indicated it intends to pursue more aggressively the U.S. institutional market this year. The bank has about $3 billion in total assets under management. IBJ Schroder is owned by IBJ International, a Japanese bank active in brokering Japanese equities.
Hong Kong's Mandatory Provident Fund was given the go-ahead yesterday, with the scheme due to be set up early next year.
Legislative councilors also voted against controversial, and potentially time-delaying, proposed amendments to the government's investment regulations for the scheme, which is expected to bring in HK$12 billion (U.S.$1.5 billion) in its first year alone.
The next stage for the MPF will begin with the creation of an MPF Authority once legislators give the green light to an HK$5 billion funding application.
Pennsylvania State Employes' Retirement System trustees voted to rehire the Copeland Cos. as third-party administrator for the state employees' deferred compensation plan. Under state law, the board of Harrisburg-based SERS has oversight responsibility for the $544 million 457 plan.
The vote extends Copeland's contract for third-party administrative services, which it has provided since the plan's inception in 1988. Pending successful completion of negotiations and beginning Aug. 1, the new contract will run for four years with a one-year option.
American Express Retirement Services, Minneapolis, is beta-testing individual performance statements for 401(k) participants, said Katie Libbe, vice president-marketing. The statements will show participants how their investments performed, not just the general performance of the particular funds in which they invest.
The company hopes to roll out this enhanced 401(k) statement analysis next year.