NEW YORK - Defined contribution plans contributed an estimated $60 billion in cash flows to the mutual fund industry in 2000, a new report by Strategic Insight and NewRiver said.
Defined contribution plan assets in mutual funds, including variable annuities, totaled more than $1.2 trillion at the end of 2000, accounting for 19% of total fund assets, up from 15% in 1994, the study estimated.
Mutual funds remain the preferred vehicle for defined contribution investments, with 46% of defined contribution assets invested in mutual funds.
The five largest investment managers in the defined contribution business last year were Fidelity, Vanguard, American Funds, Putnam and Janus. Fidelity was the largest mutual fund investment adviser in the defined contribution business, with close to $290 billion in its funds last year. Janus attracted the highest cash inflows, about $14 billion, or 35%, of its overall company mutual fund flows last year.
Together, the top five firms controlled nearly $570 billion in assets and took in some $40 billion in 2000, excluding variable annuities, the study stated.
Chicago teachers broaden
directed, minority policy
CHICAGO - Chicago Public School Teachers' Pension & Retirement Fund trustees voted to extend the $10.6 billion fund's directed and minority- and women-owned brokerage policy to its international equity managers in developed markets.
The policy will require that 25% of such brokerage be directed to commission recapture and that an additional 10% go to minority- and women-owned brokerages.
The policy will involve the fund's international developed market equity managers - Morgan Stanley, Lazard, and Zurich Scudder - which together manage 10.2%, or just more than $1 billion, of the total fund in international developed market equities.
Hull system moves 50% of
assets into state-run trust
HULL, Mass. - Hull Town Retirement System moved half its $13 million in total assets into the state-run Massachusetts Pension Reserve Investment Trust, said Deborah Neal, administrative assistant.
The system's assets had been split between balanced managers State Street Bank & Trust and Freedom Capital, which now runs $3.25 million for the fund, according to Morris Murphy, system chairman.
Pomona College endowment raises venture cap target
CLAREMONT, Calif. - Pomona College refined the policy target for its $990 million endowment. Based on a recommendation from Cambridge Associates, Pomona College is increasing its venture capital target to 10% from 5% and decreasing its domestic equity exposure to 33% from 40%.
Pomona readjusted the target to make it more realistic, as its venture capital portfolio had consistently exceeded its target, said Robin Aspinall, controller and associate treasurer.
The additional money will be allocated among existing managers, which she declined to name.