SEATTLE - The University of Washington is looking to boost its allocation to hedge funds for its $1.9 billion in endowment and operating assets, university financial officials said.
For the $1 billion in endowment assets, trustees are considering pushing absolute-return strategies to the top of its 5% to 15% range from 10.5% as of Dec. 31, said V'Ella Warren, treasurer of the board of regents and assistant vice president-financial management.
Investments totaling $20 million in two new limited partnerships - one long-short and one arbitrage manager - probably will be proposed to the board in the next month or so, said Susan Ball, senior associate treasurer. She declined to name the managers. Another $20 million to $25 million likely will be handed out by the end of the year. Ms. Ball said she doesn't expect the fund will have more than a dozen hedge fund managers, including the seven already on the books, unless endowment officials decide to pursue sector or regional funds. Also, university officials are in the early stages of considering ways to enhance fixed-income returns for the university's $826 million in operating and reserve funds. The fund is looking at fixed-income arbitrage, quantitative and market-neutral strategies, Ms. Ball said. Cambridge Associates is assisting.
World Bank's Beschloss
to head Carlyle Asset
WASHINGTON - Afsaneh Mashayekhi Beschloss was named managing director and partner to head Carlyle Asset Management Group, the new money management arm of The Carlyle Group. Ms. Beschloss, who is treasurer and chief investment officer of the World Bank, will join Carlyle next mont. She will focus on raising money for new funds investing in both private and publicly traded equities, and for hedge funds.
A replacement for her at the World Bank probably will be named by June.
Colorado legislators to study
defined contribution plans
DENVER - Colorado lawmakers will examine the role of defined contribution plans in the total benefits package for state employees. The state Senate passed a bill authorizing a study of such plans, and the House is expected to pass a similar bill before lawmakers adjourn May 7.
The study will begin after the legislative session ends and must be delivered to lawmakers by Dec. 1, said Kim Johnson, general counsel at the $31 billion Denver-based Colorado Public Employees' Retirement Association. State lawmakers will discuss the results during the 2002 legislative session.
McCullock to head
Oklahoma Law Enforcement
OKLAHOMA CITY - Lawrence F. McCullock has been named executive director of the $518 million Oklahoma Law Enforcement Retirement System. Mr. McCullock replaces Mary Haning, who retired late last year. He has been assistant executive director since December 1998. Before that, he was comptroller for the Oklahoma Public Employees' Retirement System.
Drop in pension income hits
Northrop Grumman's earnings
LOS ANGELES - Northrop Grumman Corp.'s first-quarter earnings fell 34% from a year earlier, largely due to a decline in its pension income. The Los Angeles-based defense contractor announced that its net income for the first quarter was $103 million, or $1.42 per share, compared with $156 million, or $2.23 a share, for the first quarter last year. Operating profits for the first quarter included $69 million in pension income, significantly lower than the $140 million the company reported a year earlier.
South Carolina equity manager search by invitation only
COLUMBIA, S.C. - South Carolina Retirement System, Columbia, is conducting an invitation-only search for an active domestic large-cap growth equity manager.
The size of the portfolio has not yet been determined, said Michael Sponhour, spokesman.
The $19 billion system had selected Dresdner RCM Global to manage the portfolio, but contract negotiations with the firm fell through.
The system does not use RFPs and has no timetable for picking the new manager, he said.
Funding will come from employer contributions and cash.
William M. Mercer is assisting.