GARDENA, Calif. -- Nissan Motor Corp. U.S.A. recently rebalanced its $280 million defined benefit plan and increased allocations to two managers as a result, said John French, controller.
Barclays Global Investors, which runs $26 million in a Standard & Poor's 500 stock index fund, received an additional $20 million; and Brinson Partners received an additional $2 million for a $30 million active EAFE mandate.
Partial funding came from reducing a $68 million domestic large-cap equity growth mandate, run by Janus, by $20 million; and a $27 million fixed-income securities portfolio, run by Highmark Capital Management, by $1 million.
Phoenix Investment Counsel shuts equity operations
HARTFORD, Conn. -- Equity operations at Phoenix Investment Counsel Inc. were shut down April 8 in a strategic cost-cutting move by the parent company, Phoenix Investment Partners.
All equity accounts handled by Phoenix Investment Counsel, including $97 million in institutional assets., were transferred to another Phoenix subsidiary, Seneca Capital Management, San Francisco.
Fifteen equity staff members were displaced by the closure.
Phoenix Investment Counsel will continue to manage about $1.6 billion only in fixed income, which includes about $125 million in institutional assets.
Clients are being notified of the changes, said Phoenix spokesman Andy Janicik.
Texas Employees sets new asset allocation
AUSTIN, Texas -- The Employees' Retirement System of Texas has approved a new asset allocation for its $19 billion fund, said Jim Sherwin, director of domestic equities.
It is: 37% large-cap U.S. equities; 4% small-cap U.S. equities; 18% international equities; 37% domestic fixed income; and 4% domestic high-yield fixed income. The current mix is: 36% large-cap U.S. equities; 10% international equities; and 54% domestic fixed income.
The change will "most likely lead to manager searches in the high-yield area," Mr. Sherwin said, adding the system has no time line for searches.
Currently, most of its fixed-income and equity assets are run in-house, he said. Callan assisted.
Health Care Delivery Services to repay pension losses
LOS ANGELES -- Health Care Delivery Services Inc. has reached a settlement with the Department of Labor's pension office over losses of $208,564 incurred by the company's pension plan.
The losses occurred when the company siphoned off assets from its pension plan to pay business expenses.
The pension plan received the money removed by the company -- $157,300 -- plus interest. The Labor Department had sued the company and its chief executive, Clemente Sainten -- along with others on the company's pension board -- Aug. 7, charging breaches of federal pension law. Under the settlement, Mr. Sainten cannot serve as a fiduciary to any federally regulated pension plan.
Publishers Clearing House alters plan, adds new one
PORT WASHINGTON N.Y. -- Publishers Clearing House on July 1 will convert its $120 million profit-sharing plan into a money purchase plan and start a 401(k) plan, according to Patrick Nevins, senior manager of benefits and compensation.
Currently, 1,250 employees participate in the company's profit-sharing plan, he said.
Fidelity Institutional Retirement Services will provide administration and record keeping for both plans. Fidelity also will supply the same seven investment options for each plan: Fidelity's Retirement Money Market Portfolio; U.S. Bond Index fund; Equity Income II; Spartan U.S. Equity Index; Aggressive Growth Fund; Dividend Growth Fund; and Diversified International Fund, he said.
Bank of New York had administered the old plan and provided two of the three investment options, a money market fund and a growth fund. Remaining in the new money purchase plan from the prior plan will be the Forstmann-Leff Primary Fund, an equity portfolio that held about 90% of the profit-sharing assets, Mr. Nevins said. The Forstmann-Leff fund will not be included in the 401(k) plan, he added.
Plumbers and pipefitters to merge locals and assets
CINCINNATI -- Plumbers, Local 49, and Pipefitters, Local 392, expect to merge by June 1, becoming Plumbers & Pipefitters, Local 392, said R. Allen Folz, administrator for Plumbers. The new local will have combined pension assets of $318 million; the change may require new managers, he said.
Plumbers' consultant, Merrill Lynch, is assisting with the merger. Smith Barney is the Pipefitters' consultant; the future of both consultants is undetermined, said Mr. Folz.
World Bank cuts exposure to foreign developed markets
WASHINGTON -- World Bank pension fund increased its allocation to domestic equities and cut back its exposure to foreign developed market stocks as part of a new asset allocation, which became effective Feb. 1.
The $10 billion pension fund now has 35% of its assets in U.S. stocks, up from 30%; and 30% in foreign developed market equities, down from 34%. It also increased its exposure to global fixed income to 20% of total assets from 18%; and decreased its high yield allocation to zero from 2%.
The additional U.S. equity allocation went into Russell 3000 portfolios with existing managers Barclays Global Investors and State Street Global Advisors. No manager changes were made, said Afsaneh Mashayekhi Beschloss, treasurer and head of the pension fund.
Behrman sells stake in Condor Systems
NEW YORK -- Behrman Capital sold its majority stake in Condor Systems for $134 million to an investor group led by Global Technology Partners and DLJ Merchant Banking Partners II. Behrman now will become an investor in the privately held defense electronics firm through its $518 million buyout fund, Behrman Capital II LP.
Investors in Behrman Capital's two funds include the $1.2 billion Mead Corp. pension system, $6.4 billion Unisys Corp. pension fund, $109 billion New York State Common Retirement Fund, $150 billion California Public Employees' Retirement System and $8.3 billion Kansas Public Employees' Retirement System. Behrman acquired its original stake in Condor in November 1996 in a leveraged recapitalization through its first buyout fund, Behrman Capital LP.
Venture-backed IPOs jump in first quarter
The number of venture-backed IPOs jumped 30% in the first quarter to 26, up from 20 in the year ended Dec. 31, according to Venture Economics Inc., which tracks venture capital activity. The offerings raised $1.7 billion, vs. $865 million in the first quarter of 1998. The average offering size increased 54.7% to $67 million. Priceline.com, which raised $160 million, is the largest offering so far in 1999.
Computer software and services was the favored sector, with 15 companies from the sector going public in the first quarter this year, followed by consumer-related companies, with five going public.
BARRA stops sales on 4 risk management programs
BERKELEY, Calif. -- BARRA will stop selling four of its domestic, fixed-income risk management software products by the end of the year, said Roveen Bhansali, managing director, fixed-income services. The eliminated software products are: B2, Decision, IBS and Precision.
The change will lead to layoffs, he said. "Some people will be let go, and some will transfer," he said. He would not comment on the number of layoffs.
BARRA intends to refocus on its global and firmwide fixed-income analytics products, he said. The domestic product accounted for 5%, or close to $8 million, of revenue for the fiscal year ending in March, according to a statement.
Lifetime of effort honored by association
BOSTON -- Peter A. Brooke, founder and chairman of the private equity firm Advent International Corp., was awarded the Lifetime Achievement in Venture Capital Award by the National Venture Capital Association. Mr. Brooke has been active in venture capital for 40 years.