More HP-Compaq votes
Ohio STRS, Illinois Universities, Missouri SERS, Wisconsin Investment Board and Dimensional Fund Advisors will vote in favor of the proposed merger of Hewlett-Packard and Compaq.
New York State Common, CalSTRS and Ohio PERS will vote against it.
Ohio Teachers owns 3.5 million H-P shares and 4.3 million Compaq shares; Illinois Universities, about 391,000 H-P shares and 343 Compaq shares; Missouri, 405,000 H-P and 575,000 Compaq; Wisconsin, 81,000 H-P shares and 140,000 Compaq shares; DFA, 550,000 H-P shares and 475,000 Compaq shares, virtually all indexed.
On the other side, New York Common owns about 6% of each company; CalSTRS 3.3 million H-P shares and 5.3 million Compaq shares; and Ohio PERS, 4 million H-P shares and 4.3 million Compaq shares.
The H-P shareholder vote is March 19; Compaq's is March 20.
State Street gets Enron nod
The DOL has appointed State Street Bank and Trust as independent fiduciary for Enron's retirement plans. State Street will be responsible for investing plan assets, selecting and monitoring investment managers and representing of the plan's interests in litigation. Enron has agreed to pay up to $1.5 million in annual fees plus expenses for three years, subject to approval by bankruptcy court.
Portman-Cardin bill moves
The House Ways and Means Committee passed the Employee Retirement Savings Bill of Rights by a 36-2 vote.
The legislation, sponsored by Reps. Rob Portman, R-Ohio, and Ben Cardin, D-Md., would penalize retirement plan sponsors that fail to give participants information on basic investing principles. The bill, similar but not identical to President Bush's pension package sponsored by Reps. John Boehner, R-Ohio, and Sam Johnson, R-Texas, also would require employers to let participants sell their company stock holdings after three years and let employees spend $500 on investment advice from qualified advisers.
Connecticut names CIO
Susan B. Sweeney was named CIO for the $20 billion Connecticut Retirement Plans and Trust Funds. She replaces Thomas E. Flanigan, who was dismissed in December after he had been on the job for just seven weeks. Ms. Sweeney was a senior consultant to Treasurer Denise L. Nappier and the fund management division.
Employees sue over 401(k)
Global Crossing employees last week sued the officers, directors and administrator of the bankrupt company's 401(k) plan in U.S. District Court in Los Angeles for breach of fiduciary duty under ERISA. The Global Crossing executives are charged with breaching their duty to disclose, and administrator BARRA RogersCasey is being sued for breach of fiduciary duty, according to the complaint.
U.K. draft code released
U.K. money managers would be required to provide semiannual detailed reports of costs to plan trustees, according to a draft code of disclosure announced March 13 by the U.K. National Association of Pension Funds and the Investment Managers Association. This disclosure would include details on fund management fees, all bank charges, taxes, custody costs and commissions paid.
Illinois eyes adding real estate
The $7.8 billion Illinois State Board of Investment may add separate accounts to its real estate portfolio later in the year, said Ron Schmitz, CIO. Staff will interview individual managers lined up by real estate consultant Townsend Group and determine whether to present a proposal to the board.
DFA taps Salisbury for Europe
David Salisbury was named CEO of European operations at Dimensional Fund Advisors, a new position. He was CEO of Schroders, but was forced to resign last year.
Police fund picks Waddell
Louisiana State Police Retirement System hired Waddell & Reed to manage $10 million in active domestic small-cap growth equities for the $262 million pension plan, said Irwin Felps, executive director. Funding came from terminating Paladin Investment Associates, which ran $10 million in a similar style. PaineWebber PRIME advised.
Berrien shifts firms
The $106 million Berrien County (Mich.) Retirement System hired TT International and Martin Currie to manage $5.3 million each, both in passive and active international blended growth and value equity portfolios, said Shelley Smith, labor relations manager and assistant pension plan administrator. Franklin Templeton, which ran $10.6 million in active international value equities, was terminated. Portfolio Analytics advised.
NYC names interim chief
John Burns was named interim CIO of the New York City Retirement Systems; the city's five pension funds have total assets of $81.5 billion. He succeeds Donna Gilding, who resigned in October to become CIO of Progress Investment Management.
Teamsters fund sues PNC
Teamsters Local 272 Labor and Management Pension Fund, New York, filed a federal class-action lawsuit against PNC Financial Services Group, said Christopher Lometti, a partner in the law firm of Schoengold & Sporn, which represents the $120 million fund. The suit, filed in U.S. District Court in Pittsburgh, claims the firm released false and misleading financial statements.
CalPERS to keep SSgA
CalPERS staff recommended retaining State Street Global Advisors as manager of $17.7 billion in international passive equity assets, one of the biggest mandates in money management. SSgA has managed the portfolio since 1989.
N.Y. Life could face new charge
U.S. District Court for the Eastern District of Pennsylvania ruled that participants in New York Life's 401(k) and defined benefit plans could amend their complaint to include racketeering charges against New York Life. The original complaint was that New York Life used its pension plan and 401(k) assets as "seed" money to start a line of institutional mutual funds; it also alleges the DB plan should not have been invested in mutual funds.
Arkansas TRS director quits
Bill Shirron resigned March 7 as director of the $7 billion Arkansas Teacher Retirement System.