New Mexico Permanent Endowment Fund, Santa Fe, likely will be searching for its first external investment managers after the governor signed legislation last week codifying a constitutional change liberalizing the investment policy, according to Philip J. Archibeck, the state investment officer. The $7.6 billion fund is searching for its first consultant. It hopes to finish that search next week.
The fund expects to search for managers initially in international equities and domestic small- and midcap equities. The searches could begin later this year, after the staff and consultant develop an investment plan.
The U.S. Congress, which set up the fund when New Mexico became a state, has to approve the plan; Mr. Archibeck expects approval in the next month.
Southwest Gas Corp., Las Vegas, will be considering the addition of small- and midcap equities over the next few months. The $200 million fund invests in large-cap equities and closely mirrors the S&P 500, said Jeff Shaw, treasurer; the additions would help to diversify the fund. Trustees will discuss the possibilities at their next meeting in late September.
Money managers might start answering RFPs for the $110 billion California Public Employees' Retirement System over the Internet. The investment committee for CalPERS is expected to vote today on whether to approve a new RFP for domestic equity managers that will be posted at the CalPERS web site.
The proposed RFP asks that respondents apply for assignments now held by existing managers that manage about $7.2 billion for CalPERS. As proposed, the RFPs tentatively would be posted April 15 for active domestic equity managers and May 19 for passive domestic equity managers; finalist presentations would be held Dec. 12.
Northern Trust Co.'s record growth in trust and custody assets during the last year helped the bank increase its fee income, but that has been tempered by prices negotiated with its clients.
Trust fees from Northern Trust's corporate and institutional services unit - which includes institutional trust and custody - rose 8% to $78.4 million during the first quarter, compared with $72.8 million a year ago. Total trust assets grew 27% to $815.9 billion by March 31, and assets under management rose 19% to $136.3 billion.
Bank officials said the increase in trust assets was moderated by lower fees for clients using the bank for several relationships, such as foreign exchange service, whose revenue is not reflected in trust fees.
Investors are shifting out of more aggressive emerging markets bond mutual funds - a trend that's unlikely to change quickly, according to ING Barings' Emerging Markets weekly report.
While net inflow to mutual funds for emerging markets debt increased $363 million between Jan. 1 and March 7, the pattern subsequently reversed; between March 8 and April 9, emerging market debt funds posted a $176 million net outflow, according to Marco Santamaria, ING Barings senior fixed-income analyst.
In addition, mutual funds for U.S. high-yield fixed income had net inflows of $4.95 billion between Jan. 1 and March 12. But that pattern also reversed; between March 13 and April 9, mutual funds for U.S. high-yield debt had $1.26 billion of net outflows.
Bankers Trust introduced the BT Institutional International Equity Fund for large defined contribution plans. The fund will mirror its retail version and invest primarily in undervalued mid- and large-cap securities with strong earnings and cash flow.
The retail fund has a five-star rating from Morningstar. Michael Levy is the portfolio manager.