New office for Machold
Roland M. Machold, former director of the New Jersey Division of Investment, has been nominated by Gov. Christine Todd Whitman to be the next state treasurer. If the nomination is approved by the Legislature, he will take office Aug. 16.
Mr. Machold retired in June 1998 after serving 23 years in the division. He is slated to succeed James A. DiEleuterio, tapped by Ms. Whitman as the next president and CEO of the New Jersey Sports and Exposition Authority.
High-yield bonds next
The $2.5 billion Cincinnati Retirement System authorized consultant Salomon Smith Barney to begin working on search criteria for its first high-yield bond manager to run up to $80 million, said Jack Walsh, fund manager.
The criteria should be approved Aug. 10 by the investment committee. No RFPs will be issued; the consultant will make recommendations.
Funding will come from reducing the portfolios of large-cap value U.S. equity managers Ark Asset, Bartlett & Co., Gradison-McDonald and Oppenheimer Capital, he said. Performance is not an issue, he added.
No timetable has been set.
Union examines manager
The $45 million defined benefit plan of Plumbers, Local 8, may search for a manager to replace American Express Asset Management, said Georgetta Smith, administrator.
Amex runs a $6 million small-cap value portfolio for the fund.
If the current manager's performance improves by the end of the year, she said, a search will not be necessary.
Diane Vener, senior vice president for American Express, did not call back by press time.
The $96 million Taunton Contributory Retirement System is searching for a core domestic small-cap equities manager, according to Kevin Leonard, the Segal Advisors consultant to the fund.
Fleet already runs a $7 million domestic small-cap stock portfolio, but the fund wants to "see what else is out there," Mr. Leonard said.
RFPs are available now; proposals are due Aug. 31.
Textile workers tap Ariel
The $621 million Textile Workers, National Pension Fund hired Ariel Capital Management to replace Fleet Investment Advisors as a $9 million small-cap value U.S. equity manager, said Richard Rust, pension manager.
Marco Consulting assisted.
CalSTRS buying properties
The $101 billion California State Teachers' Retirement System is buying 29 properties from the University of Chicago for approximately $250 million. The fund closed on the first tranche of 25 properties, worth about $210 million. CalSTRS still is doing due diligence on the last four properties.
In another development, the pension fund has bought secondary interests in two KKR LBO funds. It bought stakes of about $50 million each that the Long Term Credit Bank of Japan owned in the KKR 1987 and KKR 1996 funds.
"One of our objectives is to increase our participation in the market for secondary interests such as these," said Patrick Mitchell, CIO.
College picks Federated
Elmira College hired Federated Investors to manage a high-yield bond portfolio, said Jerry Gapp, vice president of finance.
He declined to disclose how much Federated would manage for the $30 million endowment.
Hedge fund benchmarks set
Credit Suisse First Boston Index and Tremont Advisers have formed a joint venture to construct a series of benchmarks for the hedge fund industry and to launch a line of investible index strategies tied to the indexes.
Credit Suisse First Boston Tremont Index will launch the CSFB Tremont Hedge Fund index in early October, said Robert Sloan, managing director of CSFB, followed by a series of capital-weighted subindexes.
Venture capital up 19%
Cambridge Associates reported the net return on its U.S. Venture Capital index for the quarter ended March 31 was 19.08% up from 14.07% for the previous quarter. The U.S. Private Equity index net return for the quarter was 3.8%, down from 6.15% the previous quarter. The S&P 500 returned 4.98% for the quarter.
For the year ended March 31, the venture index net return was 36.16%, beating the 34.09% S&P 500 one-year return. The net return on Cambridge's private equity index for the period was 10.24%.
Japan gains 9.9% in July
The Japanese market rose 9.9% in dollar terms in July, fueled by optimism for the country's economic recovery, according to MSCI. In contrast, other Asian markets fared poorly, dragged down by tensions between China and Taiwan. Taiwan dropped 12.4%, and the China free index fell 12.5%, while the Philippines free, Thailand free and Indonesia free indexes lost 9.7%, 12.7% and 13.8%, respectively.
The biggest gainers, in dollar terms, were Sri Lanka, up 23.7%, and Pakistan, 22.8%.
Rodriguez leads CSAM team
Tony Rodriguez has joined Credit Suisse Asset Management's fixed-income team as director in charge of U.S. investment-grade and corporate debt, which partially replaces the role played by Robert Justich, a managing director for corporate bonds who left in early June, said Jeremy Conde, a spokesman.
Mr. Rodriguez joined CSAM, which has $10 billion in U.S. core fixed-income assets from Prudential Investments.
Delaware's Downes adds duties
David K. Downes was named president and CEO of the mutual funds division of Delaware Investments. He retains his current duties as executive vice president and COO of Delaware Investments.
Mr. Downes replaces Jeffrey Nick, who was president and CEO of the mutual funds division and of Delaware Management, the holding company.
A search continues to replace Mr. Nick, who left several months ago, as CEO and president of the holding company.
Schoknecht at Alliance
Kurt Schoknecht was named senior vice president at Alliance Capital Management, a new position. He will handle the strategic business development of Alliance's offshore mutual funds. He had been business manager of the Latin America and Global Banking Groups at Deutsche Bank.
McCloskey joins Federated
Kevin R. McCloskey has joined Federated Investors as vice president and portfolio manager in the large-cap value equity area. He had been an equity portfolio manager at Killian, where he managed $20 million