At Deadline

The $26 billion Massachusetts PRIM Board slashed its U.S. equity and domestic fixed-income exposure while adding a new absolute-return hedge fund allocation of 5% of total assets. The changes are the result of an asset allocation review.

Domestic equity was reduced to 26% from 38%; U.S. fixed income was cut to 10% from 16%; and international equity was trimmed to 15% from 17%. Emerging market equity was raised to 5% from 3%; high yield was increased to 9% from 3%, including a new allocation of two percentage points to emerging market debt; real estate was boosted to 10% from 6%; and timber increased to 5% from 2%.

Plan officials want to diversify and reduce risk, said Timothy Cahill, PRIM board chairman and state treasurer. The changes are designed to "take out the wild rides" and increase the funding level, he said.

Separately, the fund hired Standish Mellon Asset Management to run a $650 million enhanced cash portfolio, said Stan Mavromates, senior investment officer. Global custodian Mellon had run the portfolio.

The $25 billion Colorado Public Employees' Retirement Association will gradually reduce its private equity portfolio to 8% of assets from 10.6% by making fewer commitments over the next few years, said Kevin Kester, director of alternative investments.

Two money managers have named new chief investment officers, while the CIO of another firm has resigned.

Fort Washington Investment Advisors tapped Nicholas P. Sargen as CIO. Mr. Sargen had been managing director and global market strategist at the private bank of J.P. Morgan Chase. He was replaced by Stuart Schweitzer, global investment strategist for J.P. Morgan Fleming Asset Management.

At Carret and Co., R. Stephen Bartholow Jr. was named CIO.

Also, Rama Krishna resigned as Citigroup Asset Management's CIO-institutional. Sources were unsure of Mr. Krishna's plans, but thought he might be starting his own money management firm. Mr. Krishna could not be reached for comment.

Eaton Vance acquired 80% of the stock of Parametric Portfolio Associates for $28 million in cash. Parametric will become a subsidiary of Eaton Vance. It will run autonomously, with its current management team.

CalSTRS has urged the SEC to permit shareholder nominations to a board of directors on the corporate proxy card. Short of conducting a costly proxy contest, shareholders have no way of nominating directors, Jack Ehnes, CEO of the $100 billion pension fund, said in a letter to Jonathan Katz, SEC secretary.

"Our goal is to level the playing field for shareholders by SEC rules that gives them increased access to the proxy statement and ballot," Mr. Ehnes said today in a statement, urging other shareholders to support the effort.

The $18 billion Texas Permanent School Fund extended custodian State Street's contract for one year, said Holland Timmins, acting executive administrator.

H.E. Butt Grocery hired The 401(k) Co. as record keeper for its $800 million 401(k) plan, replacing Hewitt Associates.

Two-thirds of midsized companies say their pension plan is having a negative impact on corporate financials, an SEI Investments survey showed. Of those, 58% say it has caused lower profitability; 22%, reduced investment in new initiatives; 14%, cash flow problems; and 10%, reduced share price. More than one answer could be given.

Twenty-two percent said they are considering closing their plan; 15% say they are considering replacing it with a different type of defined benefit plan; and 16% are thinking about converting to a defined contribution plan.

Eric Johnson joined Sound Shore Management as its first director of marketing and client service. He resigned last fall from Alliance Capital Management, where he was director of U.S. sales.

Healthcare Industry Trust of New York hired Victory Capital Management to run $12 million in active domestic fixed income, said Joe Taylor, vice president of finance for Compensation Risk Managers, administrator to the $20 million workers' compensation trust. Funding came from reducing a money market account, run by Key Bank, to $6 million.

U.S. equity portfolio managers' total cash compensation was down marginally in 2002, to $566,000, from $572,000 in 2001, according to research by Greenwich Associates. While salaries last year were up an average 2%, bonuses were down 3%. The Greenwich study also found that the total cash compensation for U.S. equity traders increased nearly 4% in 2002, to $262,000, from $253,000 in 2001.

General Motors Asset Management is launching the Core Plus Real Estate Co-Investment Trust for defined benefit plans, said Tom Dobrowski, managing director. GMAM wants to raise $200 million from outside pension funds; GM's own pension fund will invest an equal amount. The fund will make direct property investments; investors will be able to exclude sectors and regions in which they do not want to invest.

Central Pacific Bank has launched an asset management arm, picking up five former managers from Bank of Hawaii Asset Management Group. David Zerfoss will head the new venture as senior vice president and CIO. He previously was senior vice president and manager of the Bank of Hawaii; Howard Hodel, a former managing director at Bank of America, replaced him.