Roy Gillson, CEO and CIO for Investment Advisers Inc., was named chief investment officer for AXA Sun Life Investment Management, a new position at the U.K. insurer's investment unit.
IAI has narrowed a search to replace him to three outsiders.
IAI's assets under management have fallen to about $6 billion, down from $16 billion at the end of 1996. IAI, which had a string of personnel changes in the last few years, is a unit of Lloyds.
Realty plan set
The $10 billion San Francisco City & County Employees' Retirement System board of trustees adopted a formal real estate plan for 1999 that earmarks about 30% of this year's commitment to real estate for non-core, high-return real estate options.
The allocation is expected to go mostly into limited partnerships. A decision on the amount is expected later this month.
The California fund's real estate target is 8% of total assets; it has about 4.5% invested now. Townsend Group is assisting.
New 401(k) effort
Metropolitan Life and American Express announced last week that Amex's 9,000 advisers will begin selling a MetLife 401(k) plan to businesses with fewer than 500 employees. MetLife is providing administration and record keeping, but the plan will be sold under the American Express name. Both companies will offer their mutual funds through the plan, called Informed(k).
Ohio fund plans reviews
The $8.2 billion Police and Firemen's Disability & Pension Fund of Ohio will review its $1 billion U.S. small-cap equity portfolio, which is split among five managers, and its $2.9 billion domestic fixed-income portfolio sometime this year, said Allen Procter, executive director.
Separately, the fund hired its first emerging markets managers, part of a restructuring of its $790 million international portfolio. Capital International will run $150 million; Scudder, $250 million. Funding will come from rebalancing an overweighting in domestic stocks and bonds, he said.
The pension fund also is moving to core EAFE mandates from regional ones. Trustees eliminated a $60 million Pacific Basin equity portfolio managed by Scudder, and switched Lombard Odier's $160 million European portfolio to a core EAFE mandate.
Smith Barney's and Cap Guardian's discretion to invest in emerging markets was removed. The firms will continue to manage their $110 million and $120 million portfolios, respectively, in EAFE mandates.
CalPERS seeks Y2K disclosure
The $145 billion California Public Employees' Retirement System has written to more than 1,600 American companies in its equity portfolio, asking them to fulfill their obligations to investors and comply with Year 2000 disclosure requirements adopted by the SEC.
Private equity commitment
The $45 billion Public School Employees' Retirement System of Pennsylvania has made a $300 million commitment to Morgan Stanley Dean Witter Capital Partners IV, a private equity fund focusing on LBOs, said CIO John Lane. Funding will be over a five-year cycle with allocations coming from cash flow.
The system also committed $50 million to the Lubert-Adler Real Estate Fund II.
Sargent & Lundy is studying the possibility of indexing some of its domestic large-cap equities for its $180 million pension fund.
Among issues, it is comparing index vs. active managers' fees and performance. The fund, which has no indexing now, could make a decision midyear.
Hewitt is assisting.
Wyoming fund mulls search
The $2.8 billion Wyoming State Loan & Investments Board is considering a search for an additional core enhanced index manager, said Sharon Garland, assistant director of finance.
The board also hired J.P. Morgan as its first core enhanced index manager to run up to $100 million. R.V. Kuhns assisted.
St. Louis School hires
The $800 million Public School Retirement System of St. Louis hired Chicago Equity Partners to manage $56 million in a large-cap value portfolio. The funding came from various asset classes, in a move to rebalance, said Gail Lakin, executive director.
Teachers mull small-cap hike
The $750 million St. Paul Teachers' Retirement System might triple its small-cap U.S. equity exposure to 15% and eliminate domestic midcap equities, following a recent asset-liability study, said Eugene Waschbusch, treasurer. The board will meet Feb. 17 to discuss the study. If midcap is eliminated, Oppenheimer Capital, which currently runs $80 million in midcap equities, will shift to another asset class, he said. Callan is assisting.
Multiemployer defined benefit plans continue to be well-funded, according to a Segal Co. survey.
Some 74% of plans were fully funded; the average funded ratio was 96%. The survey analyzed 476 plans with combined assets of $101 billion. The last five surveys have produced few variations in funding ratios, with the percentage of fully funded plans ranging from 65% to 77%.
Segal attributes the lowering ratios to plan benefit improvements financed by stellar stock market performance.
Private equity fund set
The pension funds of Boeing and Johnson & Johnson; the endowment fund of Stanford University; and John Hancock Mutual Life Insurance are investors in Monitor Clipper Equity Partners' private equity fund.
Monitor Clipper has formed Integrated Graphics to pursue a consolidation strategy in the graphic services industry. Integrated Graphics, which has acquired seven companies that specialize in providers of high-end printing services with aggregate sales in excess of $100 million, is the first investment made by the $625 million private equity fund.
Water Authority taps Westwood
The $97 million Fairfax County (Va.) Water Authority Retirement Fund hired Westwood Management as its first large-cap value U.S. equity manager, said Robert Spengler, treasurer. The $10 million allocation will come from rebalancing large-cap growth U.S. equity investments. BT Alex. Brown assisted.
In-state task force forming
Louisiana Treasurer Ken Duncan will form by April a task force to study economically targeted local investments, according to Cooper Harrell, assistant treasurer.
The task force would include officials of the four largest state funds: the $140 million State Police Retirement and Relief Fund; the $5.7 billion State Employees' Retirement System; the $1.5 billion School Employees' Retirement System; and the $10.4 billion Teachers' Retirement System.
Bonita Brown, assistant director of the teachers' fund, and Julia LeBlanc, CIO of the school fund, both said any in-state investments would have to meet the same criteria as current investments.
Watching the thermometer
The Chicago Mercantile Exchange plans to offer temperature derivatives for selected cities, giving businesses and investors an exchange-traded vehicle for hedging extreme temperatures.
The CME's board last week voted to apply for regulatory approval from the CFTC for the futures and futures options.
New realty group
The Tuckerman Group has launched operations with $291 million in real estate assets under management for 11 institutional investors.
The firm is majority-owned by State Street Global Advisors. Tuckerman is led by Donald Conover, who joined SSgA last year from Greystone Realty Corp.