The share of the U.S. equity market held by pension funds, both private and public plans, fell to 25.8% in the second quarter of 1996 from 27.5% in 1990, according to the latest available data in the Institutional Investment Report of the Conference Board, released today.
Pension assets rose by two-thirds to $5.2 trillion from $3.1 trillion in the same period.
Mutual and closed-end funds share of the U.S. equity market rose dramatically to 11.7% from 6.4% in the period, while their total assets increased to $2.3 trillion from less than $970 billion.
The St. Paul (Minn.) Teachers' Retirement System's staff plans to recommend this spring that the board consider investing $7 million to $10 million in small-cap international equities in developed countries, said Eugene Waschbusch, secretary and treasurer of the $600 million fund. The fund already invests in large-cap international equities and emerging markets equities, he said. Assets would come from cash.
If the board approves the recommendation, the fund probably would send out an RFP, said Mr. Waschbusch.
A prudent-investor bill, passed by both houses of the Wyoming Legislature, is awaiting the signature of Gov. Jim Geringer. If signed into law, it would end investment restrictions on the $3 billion Wyoming Retirement System, Cheyenne, and lead to a higher U.S. equity exposure and new asset classes.
Harry Wales, the system's financial manager, expects the governor to sign the measure. If he does, the system also will study initial allocations to domestic real estate and international equities and fixed income.
With the law, the system plans an asset allocation study with the help of Buck Consultants. A priority will be to increase domestic equity exposure, which now stands at 32% based on cost and 40% based on market value.
Officials in the governor's office didn't return phone calls.
The General Electric Pension Trust, Stamford, Conn., with $32 billion in assets, agreed to acquire 25% of a $100 million private equity placement of 7% convertible preferred stock to be issued by IXC Communications.
The other 75% will be acquired by Morgan Stanley Capital Partners, the private equity unit of Morgan Stanley Group. IXC said completion of the deal is expected in March.
A memorial service for PBGC Executive Director Martin Slate has been scheduled for 10 a.m. March 6 at the Andrew W. Mellon Auditorium, at Constitution Avenue between 12th and 14th streets, Washington.A photo identification will be required to attend the service.
Mr. Slate was PBGC executive director for nearly four yearsand the driving force behind several far-reaching pension law changes. He died Feb. 23 of a heart attack at his home. He was 51.
Contributions may be made in his memory to Thomson School Fund, Strong John Thomson Elementary School, 1200 L St. N.W., Washington, D.C. 20005, or the Jewish Foundation for Group Homes, 6101 Montrose Road, Suite 200, Rockville, Md. 20852.
CORRECTION: The Texas Pension Review Board asked Dallas city officials to hand over actuarial studies that city officials claim show the Dallas Employees' Retirement Fund is financially sound. An item in Wednesday's P&I Daily was incorrect because of an editing error.
The Oregon Public Employes' Retirement System, Salem, committed $100 million to HVP V L.P., a private equity fund of funds managed by Hancock Venture Partners.
The allocation will be drawn from cash flow, said Jay Fewel, senior investment officer for the $25 billion fund. Pacific Corporate Group assisted.
The Oregon fund also expects to do a complete review of its international equity managers in May, similar to its recent review of domestic equity managers.
The Neiman-Marcus Group, Chestnut Hills, Mass., added its first international fund to its lineup of investment options for its $115 million 401(k) plan.
The new fund is offered by Templeton Investment Counsel and brings the plan's number of options to six. Fidelity provides the other five funds, said Ken Fogarty, assistant treasurer. The search for the fund was completed in-house.
Newport News (Va.) Employees Retirement Plan hired Brandes Investment Partners to handle $10 million in international equity.
Brandes will be the $433 million defined benefit plan's second international manager. It was brought on to diversify the portfolio, said Ronald W. Jones, director. Assets came from the fund's large-cap domestic equity managers; no one was terminated.
Dahab Associates assisted