401k Forum voluntarily withdrew its application for a prohibited transaction exemption allowing it to offer investment advice.
E. Drake Mosier, chairman & chief executive officer, declined to say why the firm withdrew its application. He did say that, in general, when an exemption is not required because no prohibited transaction exists, the Department of Labor will not grant one.
When 401k Forum applied for the exemption last April, executives asserted to the DOL the firm was about to embark on business relationships with money managers that could have resulted in prohibited transactions.
Canada board hires 2
The Canada Pension Plan Investment Board last week hired its first two money managers, said Gail Cook-Bennett, chairwoman of the board, which is not yet funded. Both will invest in equities.
TD Quantitative Capital will run Canadian equities with a benchmark of the TSE 300. Barclays Global Investors will run non-Canadian equity investments, with a benchmark of the MSCI Global index, ex Canada.
The Canada Pension Plan had C$36.5 billion (U.S.$24.4 billion) in assets Dec. 31.
William Mercer consulted.
The investment board also hired Royal Trust Bank as custodian.
Chicago Park OKs guidelines
The $630 million Chicago Park Employees' Annuity & Benefit Fund board OK'd investment guidelines using the prudent person rule, with an asset allocation study to follow, said Joseph Fratto, executive director.
Portability bill reintroduced
Reps. Earl Pomeroy, D-N.D., and Jim Kolbe, R-Ariz., reintroduced the Retirement Account Portability Act, which aims to make it easier for workers to take retirement savings from job to job.
Welsh fund restructures
The L150 million ($245 million) Powys County Council Pension Fund has restructured its portfolio. Lombard Odier Investment Management Services has been appointed U.K. equity manager, running 30% of fund assets; Barings will run 20% of the fund in overseas equities; and Barclays Global Investors will run 50% in a U.K. balanced passive portfolio.
New asset mix gets nod
The $45 billion Pennsylvania Public School Employees' Retirement System has OK'd a new asset allocation: domestic equity, 45%; international equity, 20%; fixed income, 25%; real estate, 5%; and private equity, 5% . Wilshire consulted.
Wyoming OKs `prudent man'
The Wyoming Legislature has passed a prudent investor law that will allow several state trust funds to allocate money to a broader array of domestic and international investments, said Glenn Shaffer, deputy state treasurer. Gov. Jim Geringer is expected to sign the bill by mid-March. For the first time, the assets of the $1.6 billion Permanent Mineral Trust Fund and the $800 million Common School Permanent Fund could be invested internationally, Mr. Shaffer said. A restriction on the quality of domestic securities that the funds could invest in would also be lifted, he said.
Union fund hires
The $300 million Association of General Contractors-International Union of Operating Engineers, Local 700, pension trust hired Washington Capital Management to run $5 million in a commingled open-end fund, a spokesman said.
2 named to interim posts
William Clifford was named acting director, pension management, and David Templin was named interim director, trust investments, at Consolidated Edison Co. of New York, after Earl White, director, pension management, resigned. Mr. Clifford, senior financial analyst, and Mr. Templin, manager, pension administration, will oversee managers for the $6.7 billion defined benefit plan until a permanent replacement is hired.
Ohio School taps BlackRock
The $7.5 billion Ohio School Employees Retirement System hired BlackRock as a core domestic fixed-income manager to run $400 million, said Doug Sisson, director-investments.
Teamsters taps Aeltus
The Central Pennsylvania Teamsters Pension Fund hired Aeltus to manage $100 million in a large-cap growth portfolio for its $1.2 billion defined contribution plan, said Martin Cullen, assistant administrator.
Orange County hires 2
The $4.2 billion Orange County (Calif.) Employees' Retirement System hired Geewax, Terker to run a $75 million small-cap growth fund, said Farouki Majeed, CIO. It also hired PMRealty Advisors to run $100 million in core real estate in a separate account, he said.
SUNY hires EAFE manager
The $330 million State University of New York endowment fund hired Delaware International Advisers as its first EAFE manager to run $30 million, said Lori Berlinger, director of the endowment fund and account services.
Real estate investment made
The $24 billion Pennsylvania State Employes' Retirement System has become an equity investor in Toll Brothers Realty Trust, said fund spokesman Geoffrey S. Yuda. The venture was formed by Toll Brothers in conjunction with the retirement system to develop and acquire commercial properties in its current markets.
AEGON NV will acquire Transamerica Corp. for $9.7 billion, of which 70% will be in stock and 30% in cash. AEGON will assume about $1.1 billion of Transamerica's holding company debt. AEGON USA and Transamerica will merge after the deal closes this summer. Together, they will manage $6.5 billion in 401(k) assets and $9.15 billion in GICs and annuities.
Benefits under microscope
The generous pensions many mutual fund board directors collect in addition to annual retainers are certain to be an issue at this week's SEC fund director roundtable. According to Investment News, a sister publication of P&I, when Chicago corporate securities lawyer Wayne Whalen retires as a director of Morgan Stanley Dean Witter & Co.'s Van Kampen Investments mutual fund unit, he will receive a nearly $1.5 million pension. And directors at AMVESCAP PLC's INVESCO Funds unit in Denver collect 100% of their annual pay in their first year of retirement and then half that annual rate for a minimum of 10 years. But some fund groups -- including Fidelity Investments and American Express's IDS Mutual Fund Group -- already ended their retirement plans.