Maryland plans review
The $27 billion State of Maryland Retirement and Pension System will review the fund's 26 managers this quarter and terminate those that are underperforming.
Richard N. Dixon, board chairman, said he thinks the fund has too many money managers.
Separately, the fund hired GEM Capital Management and Advent Capital Management to each manage $100 million in convertible bonds. Funding will come from reducing a $4.9 billion S&P 500 index fund managed by State Street Global Advisors.
Joint bid withdrawn
Callan Associates/Interstate Johnson Lane have withdrawn their joint bid to serve as consultant to the $17 billion South Carolina Retirement System.
SEC adopts new rule
The SEC adopted a rule under the Investment Advisers Act requiring money managers to file reports on their preparation for the Year 2000 computer problem.
Most registered investment advisers will have to file Form ADV-Y2K, regarding the preparation that advisers and their companies are taking to prepare for the Y2K problem.
New asset mix selected
The $7.4 billion Illinois State Board of Investment has shifted its asset allocation, said Jane Patterson, executive director.
The new mix is: 45%U.S. equities; 20%non-U.S. equities; 25%fixed income; 5%alternative investments; and 5%real estate, said Ms. Patterson. The primary change is a movement of 8%of assets to U.S. stocks from fixed income, she said.
No new managers will be hired.
Louisiana hires 2
The $5.7 billion Louisiana State Employees' Retirement System hired HarbourVest to manage $75 million in a private equity fund of funds and committed $50 million to a merger arbitrage hedge fund run by Halcyon/Alan B. Slifka, said Bob Borden, CIO.
Funding will come from a liquidated real estate portfolio.
PRIM adds in realty
The $21.2 billion Massachusetts Pension Reserves Investment Management Board hired INVESCO Realty Advisors and LaSalle Partners to manage $50 million each in value real estate.
INVESCO currently manages $173 million for the fund's $930 million core real estate portfolio; LaSalle runs $153 million.
Other finalists were Lend Lease, RREEF and TA Associates Realty.
Assets came from rebalancing. Townsend Group assisted.
Mutual fund help sought
Pilgrim Baxter's bid to sell itself is being driven by a desire to get mutual fund distribution not available from parent United Asset Management.
The sale -- if it happens -- to Nationwide Financial Services would mark the first time UAM has sold an affiliate.
People familiar with the firm say Paul Hondros, Pilgrim Baxter's chief operating officer, is pushing the deal. He joined the firm last October from Fidelity.
Oakland taps Seneca
The $800 million Oakland (Calif.) Police & Fire Retirement System hired Seneca Capital Management to run a $140 million core fixed-income portfolio, said Walter Johnson, risk administrator and director of retirement.
Funding will come from reducing a $320 million balanced portfolio managed by McCullough Andrews & Cappiello. McCullough will manage the remaining $180 million in a midcap growth equity portfolio, Mr. Johnson said.
Watson Wyatt assisted.
Quadra Capital Partners, the Boston-based cooperative that provided analytics and customer services for money managers, is closing Nov. 30, said Eileen Delasandro, managing director.
Quadra represents Anhalt, OConnell & Steffanci; LM Capital Management; Carl Domino Associates; McDonald Investment Management; and Smith Asset Management Group.
Quadra will give back the $1.5 million it recently received from investors.
OTC derivatives eyed
Sen. Richard G. Lugar, R-Ind., and Rep. Robert Smith, R-Ore., are asking the President's Working Group on Financial Markets to study the over-the-counter derivatives market, and determine if additional regulation is needed. In a Sept. 30 letter to Treasury Secretary Robert Rubin, Messrs. Lugar and Smith asked that the working group examine how the derivatives market has changed and what effect additional regulations will have on moving the domestic market offshore. The lawmakers asked for initial findings by Dec. 1, and a final report by June 1, 1999.
INVESCO promotes Lau
Cheng-Hock Lau was appointed CIO of the U.S. fixed-income group for INVESCO. Mr. Lau also will chair the fixed-income investment strategy committee.
Mr. Lau formerly was head of investment-grade global bonds and emerging market debt.
Putnam taps for research
Carol C. McMullen was promoted to head of global investment research, a new position at Putnam Investments.
Putnam's research teams, which formerly reported to separate CIOs, will report to Ms. McMullen. She had been CIO, global growth equities group.
New Dreyfus unit
Dreyfus Institutional Investors last week launched a new sales and distribution unit that will provide investment-only services to large defined contribution plans. The unit, headed by Philip A. Mercurio, initially will offer 25 of Dreyfus' mutual funds to large plan sponsors and eventually will provide both commingled and separate account management.
Mr. Mercurio previously was president of GE Investment Retirement Services.
Value equity chief tapped Michael P. Donnelly was named sole head of Federated Investors' value equity team. He had been cochair with Scott Schermerhorn, who is leaving to join Colonial Funds.