Halliburton Co.
($ millions)
Total assets 4,290
Defined benefit 271
Defined contribution 4,019
* DEFINED BENEFIT PLAN:
Employer contributions n/a
Benefit payments 51
Asset mix:
Domestic stocks 42%
Domestic fixed income 18%
Foreign stocks 18%
Cash equivalents 2%
Mortgages 20%
* DEFINED CONTRIBUTION PLAN:
Assets in corporate 401(k) 4,019
Total contributions 234
Asset mix:
Sponsoring company stock 3%
Other stock 42%
Fixed income 21%
Stable value 32%
Cash equivalents 2%
DALLAS - As of Sept. 30, Halliburton Co.'s total employee benefit assets decreased 16% from a year earlier. Defined benefit assets decreased 14% during the same period; defined contribution assets decreased 16%.
In the defined benefit plan, benefits paid decreased 5.5%.
During the past year, the company terminated large-cap equity manager Ark Asset Management. Halliburton also hired four managers for its defined benefit and defined contribution plans: Putnam, Western, Wellington and Reams.
MANAGERS:
Domestic equities: Fayez Sarofim; Husic; Goldman Sachs; Wellington; GAMCO; EGM; DePrince, Race & Zollo.
International equities: Schroder; Northern Cross; Putnam; Templeton.
Domestic fixed-income: Agincourt; PIMCO; Western; Loomis Sayles.
William M. Mercer Inc. is the investment consultant for both plans.
Key personnel overseeing the investment management of both plans are Nathaniel H. Duffield, director of trust investments, and Sharon Parkes, manager of trust investments.
Employees' Retirement System of the State of Hawaii
($ millions)
Total assets 7,920
Defined benefit 7,920
* DEFINED BENEFIT PLAN:
Employer contributions 8
Benefit payments 545
Asset mix:
Domestic stocks 42.4%
Domestic fixed income 23.3%
Foreign stocks 13.0%
Foreign fixed income 8.1%
Cash equivalents 1.4%
Private equity 3.1%
Real estate equity 8.2%
Mortgages 0.5%
HONOLULU - As of Sept. 30, the Employees' Retirement System of the State of Hawaii's total employee benefit assets, all defined benefit, decreased 19% from a year earlier.
Employer contributions to the plan decreased 96%; benefits paid increased 5%.
During the past year, the fund purchased a California apartment complex. The fund also hired Grant Thornton LLP to perform accounting and audit services for the fund. The results of a financial audit of the fund were released by the state's Office of the Auditor and KPMG LLP. The audit of the fiscal year ended June 30, 1999, found several deficiencies in the financial accounting and internal control practices of the retirement system. These "deficiencies" included the retirement system's failure to plan for contracting delays to execute bank custodian and security lending services contracts. The result was a loss of about $1 million in income to the retirement system. The retirement system also failed to properly monitor and enforce remedies against the bank custodian, the audit found. Failure to enforce this remedy cost the retirement system $12,500 in reduced fees. The audit also found the fund owes the state about $17 million in excess contribution overpayment. The audit recommended the fund allow sufficient time to negotiate and execute contracts before existing contracts terminate and that the fund board require management to closely monitor the bank custodian's performance. The fund disagreed with some of these findings stating that it adequately acted on the custodian's non-performance.
DEFINED BENEFIT MANAGERS:
Domestic equities: Alliance Bernstein; Bishop Street; Pacific Century Trust; Putnam Investments; 3 Bridge Capital; Barrow, Hanley, Mewhinney & Strauss; Delaware Investment Advisers; CM Bidwell; Mellon; Denver Investment Advisors; Independence; Oppenheimer; Jennison; T. Rowe Price; TCW.
International equities: Bank of Ireland; Schroder; Daiwa; Capital International; State Street.
Domestic fixed-income: PIMCO; Bradford & Marzec; Pacific Income Advisers; HCM Capital.
International fixed-income: Oechsle; PIMCO.
Real estate: Clarion; Heitman; INVESCO; PMRealty; UBS; CB Richard Ellis.
Other: Abbott Capital; Hancock Timber.
Callan Associates is the investment consultant.
The key person overseeing the investment management of the plan is Kimo Blaisdell.
1199 Healthcare Employees Pension Fund
($ millions)
Total assets 5,550
Defined benefit 5,550
* DEFINED BENEFIT PLAN:
Asset mix:
Domestic stocks 39%
Domestic fixed income 40.1%
Foreign stocks 7.1%
Foreign fixed income 3.8%
Cash equivalents 0.2%
Private equity 1.4%
Real estate equity 8.4%
NEW YORK - As of Sept. 30, the 1199 Healthcare Employees Pension Fund's total employee benefit assets, all defined benefit, decreased 11.7% from a year earlier.
During the past year, the fund named Lorraine Monchak as chief investment officer. Lorelei Woodford, who had been acting CIO since John Norris left the Taft-Hartley fund in late 2000, resigned in July to become manager of pension and thrift management at ABB Inc., Stamford, Conn. Ms. Monchak was vice president of AIG's global investment group.
DEFINED BENEFIT MANAGERS:
Domestic equities: Amalgamated Bank; Fidelity; PIMCO; Alliance; Marsico; RhumbLine; Morgan Stanley; Iridian; Columbus Circle; Dimensional Fund Advisors.
International equities: Silchester; Odey; SG Pacific.
Domestic fixed-income: SSgA; Seix; Utendahl; PIMCO; Western Asset; AFL-CIO Housing; TCW; MacKay-Shields.
International fixed income: Fischer Francis.
Real estate: Russell.
Private equity: HarbourVest.
The investment consultant is Marco Consulting Group.
Key personnel overseeing the investment management of the fund are Ms. Monchak; Roland Grant, chief financial officer; and Kevin T. Hanney, investment analyst.
Hewlett-Packard Co.
($ millions)
Total assets 7,669
Defined benefit 2,005
Defined contribution 5,664
* DEFINED BENEFIT PLAN:
Employer contributions 35
Benefit payments 182
Asset mix:
Domestic stocks 57%
Domestic fixed income 14%
Foreign stocks 9%
Foreign fixed income 6%
Cash equivalents 1%
Private equity 12%
Real estate equity 1%
Internally managed assets 540
* DEFINED CONTRIBUTION PLAN:
Assets in:
Corporate 401(k) 2,873
Other DC 2,791
Internally managed 261
Asset mix:
Sponsoring company stock 8.5%
Other stock 61.5%
Fixed income 23%
Cash equivalents 7%
PALO ALTO, Calif. - As of Sept. 30, Hewlett-Packard Co.'s total employee benefit assets decreased 29.6% from a year earlier.
The defined benefit and deferred profit-sharing plans cover employees of both Hewlett-Packard and spinoff company Agilent Technologies; the assets are commingled. The 401(k) plan covers Hewlett-Packard employees only.
MANAGERS:
Domestic equities: Jennison; Primecap; Institutional Capital; Essex.
International equities: Capital Guardian; Oechsle.
Domestic fixed-income: PIMCO.
International fixed-income: Deutsche Asset.
Elizabeth Obershaw, vice president and chief investment officer, oversees the investment management of both plans.
Honeywell International Inc.
($ millions)
Total assets 19,000
Defined benefit 12,000
Defined contribution 7,000
* DEFINED BENEFIT PLAN:
Internally managed assets 2,100
MORRISTOWN, N.J. - As of Sept. 30, Honeywell International Inc.'s total employee benefit assets decreased 12% from a year earlier. Defined benefit assets decreased 4% during the same period; defined contribution assets decreased 22%.
During the past year, Honeywell Chief Executive Officer Michael Bonsignore left the company in July after the European Union rejected General Electric Corp.'s planned $41 billion acquisition of Honeywell. The merger would have created one of the world's largest pension funds. Mr. Bonsignore received a reported $10 million severance package, plus pension benefits. Honeywell brought former CEO Lawrence A. Bossidy back from retirement to run the company on an interim basis. The company announced layoffs totaling more than 800 workers in the spring.
Key personnel overseeing the investment management of the defined benefit and defined contribution plans are Edward T. Tokar, CEO, Allied Capital Management LLC; Jay Burden, senior portfolio manager, fixed income; Marc Shapiro, senior portfolio manager, equities; and Robert Shin, manager, investment operations.
