Many public pension funds appeared to hold steady or buy one day after the stock markets huge losses. Michigan Bureau of Investments, Lansing, will be "looking to buy securities and not selling this week, said Alan H. Van Noord, director. Monday was a "busy day for the $47.5 billion system, which bought selected stocks and stock-index futures, he added.
"Were adding to existing positions and taking new positions, he said. "We feel the market will be higher six months from now We havent lost faith.
He declined to say how much the bureau, which manages almost all of its assets internally, is investing or which stocks it is buying. The fund had 7.4% in cash at the beginning of this month, compared with its usual target of 2%. Its domestic equity allocation is 43%, compared with a target range of 40% to 45%.
At the $36.3 billion Virginia Retirement System, Richmond, its business as usual despite the markets gyrations, said Nancy Everett, chief investment officer.
The $1 billion Arlington County (Va.) Supplemental Retirement System also is standing pat, said Bruce O. Kallos, administrator, who noted the funds managers are directed to automatically rebalance to the target allocations. "We look over about a six-month smoothed period, so we dont react on a daily market move basis, he said.
Meanwhile, the $430 million endowment of Washington & Lee University, Lexington, Va., plans to hold off on its quarterly rebalancing until the markets settle, said Larry Broomall, CFO.
State of Wisconsin Investment Board, Madison, estimated losses of $1.5 billion in Mondays stock market drop, said Vicki Hearing, spokeswoman. As of July 31, the plan estimated its assets totaled $59.6 billion.
The Dow Jones industrial average today closed down 17.30, or 0.19%, at 8,903.4; the S&P 500 declined 6.01, or 0.62%, closing at 1,032.76; and the Nasdaq composite was 24.29 lower, or 1.54%, to close at 1,555.26. All numbers are preliminary.