I.A.M. National Pension Fund
($ millions)
Total assets 4,200
Defined benefit 4,190
Total defined contribution 10
Employer DB contributions 96
Benefit payments 143
Total DC contributions 1
The fund uses:
Stock index futures
Fixed-income futures
Defined benefit asset mix:
Domestic stocks 64.5%
Domestic fixed income 32.6%
Cash equivalents 2.7%
Real estate equity 0.2%
Defined contribution asset mix:
Fixed income 60.4%
Cash equivalents 39.6%
WASHINGTON -- As of Sept. 30, the I.A.M. National Pension Fund's total employee benefit assets increased 1.6% from a year earlier. Defined benefit assets increased 1.6% during the same period; defined contribution assets increased 11%.
Employer contributions to the defined benefit plan increased 9%; benefits paid increased 9%.
Defined benefit managers:
Domestic equities: Dodge & Cox; State Street; Standish Ayer & Wood; Reich & Tang; Amalgamated Bank.
Domestic fixed-income: Dodge & Cox; State Street Bank; Loomis Sayles.
Real estate: AFL-CIO Housing Investment Trust. Non-correlated assets: RXR.
Tactical asset allocation: Mellon.
Cash: Payden & Rygel.
The master trustee/custodian for both funds is State Street Bank & Trust Co.
IBM Corp.
($ millions)
Total assets 52,657
Defined benefit 37,688
401(k)/457 14,969
Employer DB contributions n/a
Benefit payments 1,996
Total DC contributions 918
Internally managed assets:
Defined benefit 13,225
The fund uses:
Defined benefit asset mix:
Domestic stocks 35%
Foreign stocks 24%
Domestic fixed income 29%
Foreign fixed income 2%
Private equity 5%
Real estate equity 5%
Defined contribution asset mix:
Company stock 9%
Other stock 56%
Fixed income 5%
Stable value 27%
Cash equivalents 3%
STAMFORD, Conn. -- As of Sept. 30, IBM Corp.'s total employee benefit assets decreased 1% from a year earlier. Defined benefit assets decreased 4% during the same period; defined contribution assets decreased 7%.
Benefits paid increased 10%.
The defined benefit master trustee/custodian and global custodian is Chase Manhattan Bank; the defined contribution master trustee/custodian and global custodian is Bankers Trust Co.
Key personnel overseeing the investment management of the fund are Thomas F. Cadigan, assistant treasurer and managing director; and R.L. (Jay) Vivian Jr., director global funds management. Overseeing the defined contribution plan are Mr. Cadigan and James H. Rich, senior investment strategist.
Public Employee Retirement System of Idaho
($ millions)
Total assets 5,210
Defined benefit 5,200
401(k)/457 10
Employer DB contributions n/a
Benefit payments 205
Total DC contributions 4
The fund uses:
Stock options
Defined benefit asset mix:
Domestic stocks 53.3%
Foreign stocks 14.9%
Fixed income 30.8%
Cash equivalents .0.1%
Private equity .0.9%
Defined contribution asset mix:
Stock 61%
Fixed income 14%
Stable value 25%
BOISE, Idaho -- As of Sept. 30, the Public Employee Retirement System of Idaho's total employee benefit assets increased 9.7% from June 30, 1997. Defined benefit assets increased 9.5% during the same period. Benefits paid from the defined benefit plan increased 9.6%.
Defined benefit managers:
Domestic equities: Mellon; Scudder; Zesiger; MFS; Tukman; Columbus Circle; Mountain Pacific; Barings; Brandes.
International equities: Rowe Price-Fleming; Schroder; TCW; Genesis; Mellon Capital.
Domestic fixed-income: BEA; Barings; State Street; DB Fitzpatrick.
Real estate: Prentiss; Prudential.
Other managers: Pareto; Galen; Harvest; McCouwn DeLeeuw; Ida-West; Full Circle; Furman Selz; Saugatuck; Zesiger.
Defined contribution manager: Scudder Trust.
The defined benefit master trustee/custodian and global custodian is Mellon Trust; the defined contribution master trustee/custodian and global custodian is Scudder Trust.
The key person overseeing the investment management of the defined benefit fund is Robert M. Maynard, chief investment officer.
Illinois Municipal Retirement Fund
($ millions)
Total assets 11,665
Defined benefit 11,665
Employer DB contributions 336
Benefit payments 410
Internally managed assets 133
Defined benefit asset mix:
Domestic stocks 42.3%
Foreign stocks 19.7%
Domestic fixed income 26.5%
Foreign fixed income 5.7%
Cash equivalents 1.1%
Private equity 1.5%
Real estate equity 2.6%
Other 0.6%
OAK BROOK, Ill. -- As of Sept. 30, the Illinois Municipal Retirement Fund's total employee benefit assets, all defined benefit, decreased 0.5% from a year earlier.
Employer contributions to the plan increased 2.4%; benefits paid increased 11%.
Defined benefit managers:
Domestic equities: Boston Partners; Campbell, Cowperthwait; Dalton, Greiner, Hartman, Maher; Dimensional Fund Advisors; Fidelity; Frontier; Harris Associates; Holland; Lincoln Capital; Loomis, Sayles; Northern Trust Quantitative; Provident Investment Counsel; Wall Street Associates.
International equities: Bank of Ireland; Brandes; Capital Guardian; Fidelity; Morgan Stanley; Pyrford; Schroder.
Domestic fixed-income: Abacus Financial; Fidelity; J.P. Morgan; Nicholas-Applegate; Northern Trust Quantitative; Payden & Rygel.
International fixed-income: Julius Baer.
Real estate: CB Richard Ellis; CRA; LaSalle Advisors; Lazard Freres; Lend Lease; Olympus; Prudential; RREEF; Security Capital; Sentinel.
Other managers: Abbott; Brinson; CB Richard Ellis; Cozad/Westchester Agricultural; Forest Investment Advisors; Oxford Partners; Schroder Ventures.
The master trustee/custodian and global custodian is Northern Trust.
Key personnel overseeing the investment management of the fund are Walter J. Koziol, director-investment; Robert L. Cusma, executive director; and Edward N. Sambol, investment manager.
Illinois State Board of Investment
($ millions)
Total assets 6,815
Defined benefit 6,815
Employer DB contributions n/a
Benefit payments 88
Internally managed assets 2,299
Defined benefit asset mix:
Domestic stocks 39%
Foreign stocks 17%
Domestic fixed income 35%
Private equity 5%
Real estate equity 4%
CHICAGO -- As of Sept. 30, the Illinois State Board of Investment's total employee benefit assets, all defined benefit, increased 1.5% from a year earlier. Benefits paid decreased 76%.
During the past year, the fund committed $6.7 billion each to opportunistic real estate managers Apollo Real Estate and Lazard Freres, with funding from cash; $30 million to GTCR Fund, a special-situations fund, with funding from investment income; and $30 million to Warburg Pincus, to bring it closer to its full 5% commitment to alternative equities.
The fund conducted a strategic allocation review midyear, resulting in an asset allocation shift of 8% of assets into U.S. stocks, from fixed income.
Ronald D. Schmitz was hired as chief investment officer, a new position.
And in November, the fund hired Hewitt Associates to review its $1.5 billion international equity portfolio.
Defined benefit managers:
Domestic equities: Ariel; BGI; Fidelity; Lincoln Capital; Nicholas-Applegate; Seligman; Sloate, Weisman, Murray; Southeastern; Marshall Plan; TCW.
Global/international equities: Brinson; Cursitor Eaton; Delaware International; Templeton; Schroder International; Walter Scott.
Domestic fixed-income: Fidelity.
Real estate: ABKB/LaSalle; Allegis; AMLI; Apollo; Cozad/Westchester; Equity Institutional; Heitman Capital; Lazard Freres; Miller Global Properties; Olympus; RREEF; TCW.
Alternative investments: BCI Growth; Cornerstone; Corporate Advisors; Frontenac; Golder Thoma Cressey & Rauner; Hancock Venture; Inroads Capital; InterWest; KKR; Madison Dearborn; Menlo Ventures; Mesirow Capital; Penman; Summitt; Warburg Pincus; Weiss, Peck & Greer.
The master trustee/custodian and global custodian is Northern Trust.
Key personnel overseeing the investment management of the fund are Mr. Schmitz; Larry G. Darlington, senior fixed-income portfolio manager; Keith Cardoza, portfolio manager, domestic and international equity; and Scott Richards, portfolio manager, external investments.
Teachers' Retirement System of the State of Illinois
($ millions)
Total assets 18,853
Defined benefit 18,853
Employer DB contributions 467
Benefit payments 1,244
The fund uses:
Bond options
Stock index futures
Fixed-income futures
Short selling
Swaps
Defined benefit asset mix:
Domestic stocks 35.7%
Foreign stocks 10.2%
Domestic fixed income 30.6%
Foreign fixed income 5.8%
Cash equivalents 2.2%
Private equity 2.5%
Real estate equity 13.0%
SPRINGFIELD, Ill. -- As of Sept. 30, the Teachers' Retirement System of the State of Illinois' total employee benefit assets, all defined benefit, increased 4.6% from a year earlier.
Employer contributions to the defined benefit plan decreased 1.9%; benefits paid increased 12.6%.
During the past year, the fund gained a new executive director, Keith Bozarth, formerly assistant executive director and general counsel of the Missouri Public School Retirement System, Jefferson City. Matthew Evans, director of real estate and alternative investments, left the fund. His duties were assumed by the new chief investment officer, Mark Caplinger, who previously had worked with Mr. Bozarth in Missouri.
A complete review of the system was conducted by Independent Fiduciary Services. The review concluded the fund relies too much on outside legal counsel; lacks accountability internally and externally; needs better rules of operation; and should improve its trustee travel policy, among other things.
Mr. Bozarth and the IFS executive summary stated some of the actions recommended in the IFS review already are in progress.
Defined benefit managers:
Domestic equities: Ark; Bank of America; Brinson; Fiduciary Management Associates; First Analysis; Fox; Hotchkis & Wiley; Insight Capital Research; Institutional Capital; Lazard Asset; Lincoln Capital; Mentor; Munder; PIMCO; Paradigm; Sanford C. Bernstein; Edgar Lomax; Valenzuela; Wayne Hummer.
International equities: Brandes; Brandywine; Brinson; Capital Guardian; Clay Finlay; Delaware International; Hotchkis & Wiley; Pyrford International; RCM; Scudder.
Domestic fixed-income: Brinson; BlackRock Financial; Chicago Trust; Conseco Capital; Forstmann-Leff; Hughes Capital; Miller, Anderson, Sherrerd; Payden & Rygel; Strong; Taplin, Canida & Habacht; W.R. Huff; Weiss, Peck & Greer; Western.
International fixed-income: Brinson; Delaware International; Julius Baer; PIMCO.
Real estate: Bear Stearns/Capital; Commonwealth Realty; Cozad/Westchester; DLJ Real Estate; Heitman; K/B Realty; LaSalle Advisors; LPC; RREEF; Stone-Levy; Westmark.
Alternative investments: Angelo, Gordon; Apex; Daystar; DLJ Merchant Banking; Frontenac; Kohlberg Kravis Roberts; Mesirow Private Equity; Penman; Periscope; Sandler Capital; SCP Private Equity Partners; TCW/Latin American; Appian Group; Trivest; Veronis Suhler; Walnut Growth; Weiss, Peck & Greer; William Blair Mezzanine.
Tactical asset allocation: Brinson; Pyrford.
Cash management: Atlantic; Hotchkis & Wiley; Northern Trust.
The master trustee/custodian and global custodian is Northern Trust.
Key personnel overseeing the investment management of the fund are Messrs. Bozarth and Caplinger.
State Universities Retirement System of Illinois
($ millions)
Total assets 8,988
Defined benefit 8,980
Total defined contribution 8
Employer DB contributions 228
Benefit payments 467
Total DC contributions 0.2
The fund uses:
Stock options
Bond options
Stock index futures
Fixed-income futures
Swaps
Defined benefit asset mix:
Domestic stocks 46%
Foreign stocks 17%
Domestic fixed income 30%
Cash equivalents 1%
Private equity 1%
Real estate equity 1%
Mortgages 4%
Defined contribution asset mix:
Stock 44.8%
Fixed income 3.6%
Cash equivalents 6.4%
Other 45.2%
CHAMPAIGN, Ill. -- As of Sept. 30, State Universities Retirement System of Illinois' total employee benefit assets increased 2% from a year earlier. Defined benefit assets increased 1% during the same period; the system began accumulating assets in a new defined contribution plan.
Employer contributions to the defined benefit plan increased 8%; benefits paid increased 0.2%.
During the past year, the fund made several money management changes.
It hired Global Asset Management for $128 million in active international equities.
It added $40 million to Martin Currie's existing $80 million active emerging markets equity assignment. The funding came from a BGI emerging markets index fund, which was dropped. The system will keep $55 million with BGI in emerging markets as part of an international equity index fund.
It increased core bond assignments to two existing managers.
It raised the BlackRock's mortgage-backed securities assignment by $75 million to $325 million. Funding came from reducing a BGI bond index fund to $600 million and taking the mortgage-backed component out of it.
It changed Brinson Partners' existing $179 million international mandate to active stock selection, from just active country selection and passive stock implementation.
Defined benefit managers:
Domestic equities: Fayez Sarofim; Smith Barney; PIMCO; BGI.
International equities: American Express; Brinson; Martin Currie; BGI.
Domestic fixed-income: BlackRock; Chicago Trust; PIMCO; Standish Ayer & Wood; BGI.
Real estate: Lend Lease; RREEF.
Other: Brinson Partners; Progress Investment; Northern Trust.
Defined contribution managers: Aetna; TIAA-CREF; ICMA.
The defined benefit master trustee/custodian and global custodian is Northern Trust; the defined contribution master trustees/custodians and global custodians are Aetna, TIAA-CREF and ICMA.
Key personnel overseeing the investment management of the fund are Kenneth E. Codlin, chief investment officer; and John R. Krimmel, associate investment officer. Overseeing the defined contribution plan is Mr. Krimmel.
