CHICAGO - Boeing Co. expanded its pension staff with a possible aim of managing more money internally. It now runs about $1.5 billion internally, all in fixed income, for the $41 billion defined benefit fund.
Karen D. Watson was named manager-equities; she worked in a similar capacity at Baxter International, Deerfield, Ill. Eric J. Peterson was named manager-fixed income; he was a vice president and portfolio manager at Talon Asset Management.
Also joining the fund are Janice Llereza, trust administrator, who came from a Chicago area law firm, and Jeff Louck, performance reporting, who was in finance at Boeing.
They join Susan E. Manske, who was chosen as the new chief investment officer to head the pension staff, although Boeing hasn't made an announcement, and Jim Wadhwani, senior director-trust investments, who was the only pension executive to relocate when Boeing moved from Seattle in September.
Ms. Watson hasn't been replaced at Baxter, said Charles W. Thurman, assistant treasurer. Steven Knight replaced Mr. Peterson at Talon.
Congressmen push for interim alternative to 30-year T-bond
WASHINGTON - A bipartisan congressional group asked Treasury Secretary Paul O'Neill to push for a short-term alternative to the 30-year Treasury bond. A letter signed by Reps. Sam Johnson, R-Texas; Rob Portman, R-Ohio; Ben Cardin, D-Md.; and Earl Pomeroy, D-N.D., asked Mr. O'Neill and the Labor Department to recommend an actuarially acceptable alternative employers could use for the next two years, until a suitable long-term replacement for the benchmark security can be agreed on.
The 30-year bond is used to calculate pension liabilities and plans' PBGC insurance premiums. The Treasury Department on Oct. 31 announced it will eliminate the bonds.
Ft. Lauderdale Police/Fire reviews equity allocation
FORT LAUDERDALE, Fla. - The $380 million Fort Lauderdale Policemen's & Firemen's Pension System is reviewing its equity allocation because it wants to keep assets in line with the target allocation of 65% equities and 35% fixed income, said Lynn Wenguer, plan administrator. Ms. Wenguer does not expect manager changes to result when the study is concluded in January.
Asset Consulting Group is assisting.
Cornell endowment considers buyout, hedge fund managers
ITHACA, N.Y. - Cornell University may conduct an "invitation-only" search for additional buyout managers and hedge fund managers, said Don Fehrs, senior investment officer.
The $3 billion endowment has $100 million available to commit to new private equity managers over the next year to reach its private equity goal of 20% of total assets. It has 16% committed to private equity. The plan is to have the same weighting in venture and buyout funds; the portfolio is now overweighted in venture. Cornell will not issue RFPs, but instead will use its existing network of contacts to select managers, he said.
Hedge funds now account for 16% of total assets and are primarily equity based, Mr. Fehrs said. Staff is conducting an analysis to determine whether to add arbitrage funds to the lineup. Funding for both asset classes probably would come from reducing passively managed domestic equities. There is no timeframe for decisions about the changes.
International Truck adds 3 options to 401(k) plan
CHICAGO -International Truck & Engine Corp., Chicago, added three options to its $393 million 401(k) plan, effective Jan. 2, said Roy Wiley, manager, external corporate communications. He said a Credit Suisse Warburg Pincus Capital Appreciation fund, and T. Rowe Price small-cap stock and midcap growth funds replaced a J.P. Morgan large-cap growth fund and a small-cap growth equity fund. The plan now offers 10 options, as well as an option for stock of its parent, Navistar. J.P. Morgan/American Century is the record keeper, administrator, trustee and unbundled provider for the plan.
Jurika & Voyles co-founder to step down at year's end
OAKLAND, Calif. - Bill Jurika, a co-founder of Jurika & Voyles, will retire Dec. 31 after 30 years in the business. Mr. Jurika has been executing a succession plan for more than a decade, with ownership stakes in the money management firm gradually transferred to younger staff members, said Christopher Bittman, president and chief executive.
Glenn Voyles remains chairman and has no plans to retire, Mr. Bittman said.
Mr. Jurika passed on the titles of president and CEO to Mr. Bittman in 1999 and remained active in a strategic capacity in the firm. He has not had oversight of investment processes for some time, Mr. Bittman said.
ICM buys back stake in firm from parent company UAM
BOSTON - Investment Counselors of Maryland repurchased a stake in the firm from parent company UAM. Terms were not disclosed. ICM repurchased less than 50% of equity in the firm from UAM, said Tucker Hewes, UAM spokesman. However, through an agreement with ICM, which manages about $1.5 billion in assets, ICM has complete operating control of the company. UAM will remain a partner with ICM in some capacity, said Mr. Hewes, but he would not elaborate.