Vermont Teachers' Retirement System, Montpelier, with approximately $900 million in assets, will review a draft of a new investment policy by Callan Associates at its June 4 board meeting.
The investment policy ``may not change substantively,'' said James H. Douglas, state treasurer.
At the end of 1997, the system had 33% in global equity, 26% in domestic equity, 7% in international equity, 11% in domestic fixed income, 15% in global fixed income, 7% in real estate and 1% in alternative investments and cash. The system uses Fidelity as a large-cap domestic equity manager and J&W Seligman as a domestic small-cap manager. Delaware Investment Advisers runs global equity and fixed-income portfolios. Scudder, Stevens & Clark manages international equity, and Loomis Sayles is a domestic fixed-income manager.
Consolidated Papers Inc., Wisconsin Rapids, Wis., may move some money to active management from indexing and add a manager for its $600 million defined benefit plan, said John D. Steinberg, treasurer. It could make a decision in a couple of months, and is considering alternative equities, including hedge funds.
The fund has 20% in an S&P 500 index fund, managed by State Street Global Advisors. No decision has been made about how much to move from that fund to active management. A State Street consulting group is assisting.
Columbia Management Co., Portland, Ore., introduced the CMC Short Term Bond Fund for use by institutional and high-net-worth investors with a minimum $250,000 investment. Lead manager Leonard A. Aplet will manage the portfolio with an average duration of less than three years.
CDC Investment Management will offer two emerging markets offshore hedge funds - a debt fund and an equity fund - that also will be offered privately to qualified institutions. The firm will try to structure portfolios that are highly uncorrelated to the emerging markets' overall performance. The focus will be on relative value and event driven strategies in all emerging markets.
Phoenix Home Mutual Insurance and River Capital International, an asset management company specializing in Russian investments, announced the formation of a strategic relationship. The firms will seek to identify business opportunities in Russia and the former Soviet republics.
Phoenix Home's subsidiary Phoenix Strategic Capital will invest in River Capital and in the Volga Fixed Income Fund. The fund is an open-end limited partnership managed by River Capital that invests in short-term debt securities of Russian federal and regional governments and corporations.