Texas Utilities Co. pension executives are getting ready to do an asset-liability study for its $1.6 billion in defined benefit assets, said John Thompson, trust investments manager.
The study probably will be done in the second quarter of this year, and is the result of the merger of Texas Utilities and Enserch Corp., both of Dallas.
Frank Russell is assisting the fund with the study.
Nagasakiya Pension Fund, Tokyo, will change its asset allocation policy effective April 1.
The new asset mix will be 35% Japanese equities, 25% foreign equities, 30% Japanese bonds and 10% foreign bonds, said Tatuo Narushima, the fund's executive director. The fund now has 50% of its assets in Japanese bonds, 30% in Japanese equities, about 13% in foreign equities and 7% in foreign bonds.
The fund will continue to use its existing money managers, which manage balanced portfolios. Previously, the fund's managers followed the soon-to-be-repealed 5-3-3-2 rules, which required funds to invest at least 50% of their assets in bonds and forbid them to invest more than 30% in Japanese stocks, 30% in foreign securities and 20% in real estate.
Under the new arrangement, the managers of the 37 billion yen ($299 million) fund still will manage balanced portfolios, but their allocations might change to accommodate the new targets, Mr. Narushima said.
Northern Trust Risk & Performance Services, Chicago, unveiled a new group geared to helping pension plan sponsors managing total portfolio risk.
Called Integrated Risk Management, the Northern Trust group offers risk review services, risk monitoring and risk analysis, using both staff and computers.
Mike McGlinn, senior vice president in Risk & Performance Services, will run the new division.