Susan E. Manske, vice president and CIO of trust investments at Boeing, was named vice president and CIO of the $3.7 billion John D. and Catherine T. MacArthur Foundation.
A search has begun for her replacement. "We're moving fairly quickly," said Anne Eisele, director-financial communications at Boeing. The person hired will oversee Boeing's $46 billion in defined benefit and definition contribution plan.
At MacArthur Foundation, Ms. Manske replaces Lyn Hutton, who became CIO of the Commonfund in January.
SURS liquidates some assets
The $9 billion Illinois State Universities Retirement System will take $25 million for each of the next four quarters from a $1.8 billion core-plus bond portfolio run by PIMCO; the money will help finance the system's negative cash flow, said John R. Krimmel, CIO.
Mr. Krimmel said that portfolio was chosen because PIMCO is the fund's biggest fixed-income manager. The system also plans to liquidate other assets, possibly from index funds. It will make decisions over the course of the year.
Pension bill introduced
Reps. Rob Portman, R-Ohio, and Benjamin L. Cardin, D-Md., introduced legislation on April 11 that would raise IRA and 401(k) plan contribution limits, allow 401(k) participants to sell company stock and permit older participants to maintain their retirement plan savings until age 75, instead of the current 701/2.
The bill also would replace the 30-year Treasury bond as the benchmark for calculating pension liabilities and contributions with one based on long-term high-grade corporate bonds.
2 join CalPERS watchlist
CalPERS placed active international equity managers GE Asset and Mastholm on the $131 billion system's watch list because of underperformance. GE Asset runs $443 million; Mastholm manages $424 million. Officials at GE Asset and Mastholm could not be reached for comment.
Separately, staff recommended giving one year to emerging markets whose score falls below the 2.0 level needed to remain on CalPERS' permissible markets list to provide additional data to the fund. Differing with consultant Wilshire Associates, staff would allow CalPERS' external managers to change their weightings in securities from those countries during the "cure period." The item will be discussed at CalPERS investment committee meeting on April 14.
Small cap consolidated
British Coal Pension Scheme terminated Edinburgh Fund Managers, which ran %A3;280 million ($420 million) in active U.K. small-cap equities, said David Morgan, CEO. The %A3;26 billion scheme moved the money to a portfolio run in a similar style by Schroder Investment Management, which is now the plan's only active U.K. small-cap manager. Watson Wyatt advised.
"We had three small-cap managers and we decided it would be less costly in money terms and board resources if we only had one," he said. The plan's other U.K. small-cap equity manager, Fidelity International, was terminated "some months ago," Mr. Morgan said.
Putnam Lovell buys stake
Putnam Lovell Equity Partners agreed to acquire a significant minority ownership stake in Atlantic Asset Management from Mizuho Corporate Bank (USA). Jennifer M. Keese, marketing manager at Putnam Lovell, said she could not disclose the terms or the size of the ownership stake.
Atlantic Asset Management and its six investment affiliates will continue to operate independently, managing a total of $9 billion.
PGGM to hike contributions
Stichting Pensioenfonds PGGM announced that member contributions to the €45 billion ($48.2 billion) pension fund will be increased to about 13% of salary in 2004. Contributions were increased to 10.3% this year, from 7.6% in 2002, said Kees Verhagen, PGGM spokesman.
County plan needs infusion
Milwaukee County Employees' Retirement System estimates it will need a $40 million contribution for the coming year to meet its actuarial funding requirement, said Jac R. Amerell, retirement system director and pension board secretary. The county's current budget proposal provides for only $15 million. Mercer will present official actuarial figures on the contribution to the pension board May 14, Mr. Amerell said. The system has $1.2 billion in assets and $1.5 billion in liabilities, he said.
Barclays taps strategist
Laurence Kantor was named managing director and global head of market strategy at Barclays Capital. He will be responsible for interest rate strategy, relative value, foreign exchange, commodities and emerging markets strategies.
Mr. Kantor was managing director and global head of foreign exchange at J.P. Morgan Chase; Jan Loeys, London-based head of market strategy, will handle his duties temporarily.
AFSCME keeps heat on Tenet
The $600 million American Federation of State, County and Municipal Employees Pension Plan this week will propose a nominating process to Tenet Healthcare's board of directors that would involve its shareholders. The proposal comes on the heels of the announcement that Jeffrey Barbakow will step down as chairman after Tenet's annual meeting; he will stay on as CEO. Tenet's three longest-serving directors will leave the board at the same time.
Yanni co-founder starts firm
BilkeyKatz Investment Consultants, a new investment consulting firm, opened for business. Terry Bilkey, a founder of Yanni-Bilkey Consulting (now known as Yanni Partners), and Jerry Katz, a former Yanni consultant, formed the new firm earlier this year. Mr. Bilkey had been subject to a non-compete agreement with Yanni for the past two years.
BilkeyKatz will focus on midsized tax-exempt institutions, Mr. Bilkey said.
Bill affects school's 401(a)
The Oregon University System is seeking a change in state law to give system officials more control over the $64 million 401(a) plan. Currently, the plan's employee and employer contribution rates are the same as those for the $33 billion Oregon Public Employees Retirement System. The change would allow the system to determine the 401(a)'s plan design and contribution rates.