CalPERS sets gift policy
CalPERS' board of trustees, facing potential state legislative hearings concerning political contributions and gifts from money managers, has banned political contributions to board and senior staff members and some fund consultants.
The board of the $128 billion system also adopted a policy requiring public disclosure of all gifts to those groups.
The board also made alternative investment commitments: $75 million to Aurora Equity Partners II; $125 million to Beacon Group Energy Investment Fund II; and $150 million to CVC European Equity Partners II.
Walker head at US WEST
Kim Walker will become the new president of US WEST Trust Investment Management, which oversees the $16.5 billion pension fund of US WEST Inc., effective March 1.
Ms. Walker, who previously was director of equity strategy at General Motors Investment Management, replaces Jim Biundo, who left US WEST in September. Ms. Walker's position has not yet been filled.
After US WEST splits into two companies later this year, Ms. Walker will head the pension fund for the larger, telephone-operations company.
A search is still on for an executive to run the pension fund for what will be MediaOne Group, the cable portion of US WEST.
N.Y. assigns $1.4 billion
The $96 billion New York State Common Retirement Fund allocated $200 million each to the Bank of Ireland, Delaware International and Templeton Investment Counsel to manage core EAFE portfolios, confirmed New York State Comptroller H. Carl McCall.
The fund also gave additional money to three emerging markets equity managers: Acadian Asset Management got $60 million, boosting its total to $145 million; Templeton received $75 million and now manages $323 million; and Capital Guardian Trust received $150 million, bringing its total to $607 million.
All of the allocations were funded from cash flow.
Morgan Grenfell Asset had its contract as an emerging markets manager terminated because of relative underperformance and reorganization of the emerging markets team, according to Mr. McCall.
Morgan Grenfell's $60 million portfolio was transferred to Templeton. A Morgan Grenfell spokesman had no comment.
The pension fund also committed $200 million to the Hudson River Fund, which will make small investments in small leveraged buyouts and special situation partnerships recommended by Hamilton Lane Advisors, and $100 million to the Mohawk River Fund, which will invest in venture capital partnerships recommended by HarbourVest Partners.
HarbourVest also will receive $200 million to invest in International Private Equity Partners III, an international venture capital fund of funds.
Virginia commits to 2 funds
The $28.8 billion Virginia Retirement System will invest $25 million in the European Acquisition Capital Fund II, a private equity fund that acquires interests in undervalued, midsized private companies in Britain and Europe, and $50 million in LF Strategic Investors II, a closed-end real estate partnership.
Landmark makes bid
Landmark Realty Advisors initiated a tender offer to buy up to $50 million of interests in Development Properties Account, a commingled real estate group trust managed by AEW Capital Management. DPA is operating under a liquidation plan, which is expected to be completed by 2000. The offer -- which represents a 22% discount from Dec. 31 net asset value of $338 million -- is not hostile, said Richard Maine, president of Landmark Realty.
Primary race crowded
Hartford City Treasurer Denise Nappier announced her candidacy for Connecticut state treasurer last week. Ms. Nappier, a Democrat, is a trustee of the $865 million Hartford Municipal Employees' Retirement Fund.
Earlier this year, state Treasurer Paul Silvester, who is completing the unfinished term of Christopher Burnham, said he will run for the office. Two other Democrats, former New Haven Mayor John Daniels and Frank Leece, a former stockbroker, also have announced their candidacies.
The Connecticut treasurer is the sole trustee of the $16 billion State of Connecticut Trust fund.
University eyes buyout fund
The $335 million University of Iowa Foundation will consider adding a domestic buyout fund from The Common Fund at its board's May 7 meeting.
The foundation already invests in a variety of venture capital funds as part of its $55 million alternative investments portfolio. The amount to be placed in the fund and where the money is coming from has yet to be decided, said Larry Bruse, treasurer.
The board also will consider allocating more money to Artisan Partners' small-cap growth fund. The firm now manages a total of $15 million in small-cap growth and international equities.
Cambridge is assisting.
Toyota hires for equities
Toyota Motor Sales USA hired Boston Partners to manage a value equity portfolio of between 5% and 10% of its $300 million pension fund, said Lloyd Mistele, vice president-finance. Funding will come from a reallocation.
Bond chief named
John W. Geissinger has joined Bear Stearns Asset Management as a senior managing director and head of fixed income, a new position.
He comes from Chancellor LGT Asset Management, where he was a managing director and head of investment-grade fixed income for more than four years. His duties were assumed by Cheng-Hock Lau, who was promoted to oversee all of the firm's fixed-income portfolios. Previously, Mr. Lau was the head of global fixed income.
2 may merge assets
The Massachusetts Painters District Council No. 35 might merge its pension assets with those of Glaziers & Glassworkers Local 1044, following the merger of the unions.
Officials expect to know whether the plans will be merged and which managers will be kept by April 17, when the painter fund's board meets, said Sharon Saganey, fund administrator for the $75 million plan. The glaziers fund has $20 million in assets, according to Nelson's Directory of Plan Sponsors.
AAI adds 4 options
AAI Corp. hired three managers to add four funds to its $73 million 401(k) plan.
Fidelity will manage money market and equity funds; INVESCO, a balanced fund; and Templeton, an international equity fund. The additions bring to 11 the total investment choices.
Outfitters bundle up
Norman Thompson Outfitters hired T. Rowe Price as bundled provider for its $9 million 401(k) plan. Amy Reed, benefits specialist, would not name the plan's previous providers.
The SEC approved the launch of Emerging Markets Clearing Corp., which initially will handle the clearance and settlement of U.S.-dollar-denominated Brady bonds when it opens in April.
The corporation plans to expand operations to handle sovereign debt Eurobonds and other emerging market debt instruments, pending further SEC approval, said Keith Kanaga, managing director and senior executive of the new corporation.
IMC adds plan
IMC Global added a profit-sharing plan for its salaried employees. About 60% of participants in the company's $114.5 million defined benefit plan have opted to join the new profit-sharing plan, said Claudia Davidson, manager of pension benefits. No money will be transferred from the defined benefit plan to the new plan, but each employee who opts for the new plan will receive the company's profit-sharing contribution at the end of 1998.
The new plan will have the same record keeper and administrator -- Marshall & Ilsley -- and same investment options as IMC's 401(k) plan. The options are: Marshall & Ilsley Stable Principle Fund, Bond Fund of America, Vanguard Wellington Fund, Fidelity Equity Income Fund, Vanguard Index Trust 500 Fund, Fidelity Magellan, Templeton Foreign Fund, Franklin Balanced Sheet Investment Fund and IMC Global stock.
University picks LBO fund
The University of Puget Sound will commit $2 million of its $148 million endowment fund to Kelso Investment Associates Fund VI.
Frank Russell assisted.