New policies for CalSTRS
The $98.5 billion California State Teachers' Retirement System adopted currency hedging program policies, approved an alternative investment business plan and authorized staff to enter into contracts with alternative investment advisers and/or independent fiduciaries.
The board also adopted an equity monitoring policy that requires the asset category be managed to "achieve optimum performance results, diversification of styles and assets, clear and certain disclosure and accountability."
The board also voted to support a bill that would require CalSTRS and the $156.4 billion California Public Employees' Retirement System to monitor investments in businesses that owe compensation to victims or heirs of victims of World War II slave labor. It also voted to support a bill that would require CalSTRS and CalPERS to monitor Northern Ireland-based corporations in which the funds invest and to support shareholder resolutions of those corporations encouraging affirmative action.
PanAgora names new CEO, CIO
William Poutsiaka was appointed president and CEO of PanAgora Asset Management, and Edgar Peters was named CIO.
Mr. Poutsiaka, who was president and CEO of Arkwright Mutual Insurance, replaces Bruce Clarke, who has resigned. Mr. Peters, PanAgora's chief investment strategist, replaces Peter Rathjens.
Mr. Rathjens said the pair is launching an investment management firm.
South Carolina hires SSgA
The $19.4 billion South Carolina Retirement System hired its first equity manager - State Street Global Advisors - to run an S&P 500 index fund of $917 million.
$600 million contribution
Delphi Automotive Systems made a $600 million contribution to its U.S. hourly employees defined benefit plan to help cure a nearly $2.2 billion unfunded liability.
Before Delphi split off from General Motors, Delphi executives had promised to pay $1.8 billion in the union's pension fund between the date of the split and the third quarter 2000. The non-union pension fund is fully funded, said Steve Gault, Delphi spokesman. Combined assets in both pension plans were estimated at $2.5 billion on Dec. 31.
Delphi also agreed to accept the pension fund-related terms and conditions that are in GM's contracts, he said.
Global corporate governance
The World Bank and the Organization for Economic Cooperation and Development will launch a major global corporate governance initiative designed to develop and implement standards in developing countries. A memorandum of understanding is expected to be signed on June 21. It will establish a Global Corporate Governance Forum comprising major international public and standards-setting bodies that will formulate policy.
The $350 million pension fund of MDU Resources Group increased its small-cap U.S. equity and international equity exposures to 15% each of total assets from 10%. It also is considering a search for an additional international equity manager following a recent asset-liability study, said Warren Robinson, CFO and treasurer. Lazard Asset Management and J.&W. Seligman, small-cap U.S. equity managers running $12.5 million apiece, each will receive a 5% increase, he said. Templeton International, which manages $25 million in international equities for the fund, could see a 5% increase if an additional international equity manager is not hired.
Texas exec quits
Martin Walker has resigned as CIO of the $78.5 billion Teachers' Retirement System of Texas. A spokesman said the retirement board has just started the process of filling the position and that no further information was available. Mr. Walker joined the fund in the summer of 1997.
PBGC takes over funds
The PBGC will take over the pension funds of Caldor Corp., because the company is liquidating and its pension funds are underfunded by about $10 million. The plans had total assets of $25 million but liabilities totaled $35 million.
Louisiana Teachers hires 2
The $10.2 billion Teachers' Retirement System of Louisiana hired Ariel Capital Management and Valenzuela Capital Partners to run $200 million each in midcap value U.S. equity, said CIO Dan Bryant. They replace NM Capital Management and Fleet Investment Advisors, previously running $150 million apiece. An additional $100 million from reducing large-cap growth U.S. equity also will fund the two allocations, he said.
Allegheny taps consultant
The $690 million Retirement Board of Allegheny County hired Yanni-Bilkey to replace Kalson & Associates as full-retainer consultant, said Cheryl Bateman, executive director.
Marion County hires
The $8 million Marion County 401(k) Savings Plan hired Diversified Investment Advisors as bundled provider, and is doubling the investment options. Diversified replaces Standard Insurance, which was the plan's former record keeper and investment manager.
Hood adds international equity
The $75 million Hood College endowment allocated $1.5 million apiece to the Euro Pacific Growth Fund managed by Capital Research & Management and the Galaxy International Equity Fund managed by Fleet Investment Management, its first international equity investments, said Tom Berger, vice president of finance and administration.
New PIMCO unit
PIMCO Advisors Holdings has created a new division to handle global marketing, client services and investment research and eventually will become involved in product development and portfolio management abroad.
PIMCO Global Advisors will be led by James Muzzy, a co-founder, managing director and senior member of PIMCO's investment group. PIMCO has opened offices in London, Singapore, Tokyo and Sydney, Australia, to serve the new division, which will be based in Newport Beach, Calif.
Swain gets new post
Jeffrey P. Swain was appointed deputy comptroller for New York's retirement division by H. Carl McCall, state comptroller and sole trustee of the $110 billion New York State Common Retirement Fund.