Los Angeles County Employees' Retirement Association, Pasadena, decided to drop AMB Institutional Realty Advisors, one of its equity real estate money managers. AMB had invested $53 million in three properties for a LACERA special account. But under a new investment arrangement at AMB, 25% of the ownership of any new separate account investment must be placed into AMB's new REIT. Finding the new arrangement unacceptable, the investment board at the $22 billion fund is using a 30-day notice of termination clause to drop AMB.
The properties AMB has been managing will be turned over to ERE Yarmouth, an existing manager for LACERA. A spokeswoman for AMB said she had no immediate comment.
Alexian Brothers Health System, Inc., Elk Grove Village, Ill., is undergoing an asset allocation study for its $50 million pension plan, said Treasurer Christine Ostermeier. The asset allocation now is 60% fixed income and 40% equities. Yanni-Bilkey Investment Consulting is serving as consultant.
Ms. Ostermeier said the plan now uses only value and small-cap equity managers; a growth manager might be added to the portfolio. The recommendations of the allocation study are to be implemented by the end of the second quarter of 1998.
Phoenix City Employees' Retirement System narrowed to four finalists its search for a large-cap growth manager for its $1 billion pension fund, said Duamel Vellon, retirement program administrator.
The four are: Alliance Capital; Cadence Capital; Goldman Sachs; and Montag & Caldwell. The new manager will be assigned $185 million. The system's board expects to interview the finalists in January and hire one shortly afterward. Funding will come from Chancellor LGT, which has run a similar portfolio and will be dropped.
Becker Burke is assisting.
Wilshire Associates has opened an office in Sydney, Australia, as a stepping stone to marketing its products in Asia. Steve Nesbitt, a senior vice president at Wilshire, said today the Sydney office will be headed by Peter Carre, former investment and legal counsel to numerous U.S. pension plans, including the $1.6 billion New York State Teamsters Conference Pension and Retirement Fund.
Mr. Carre will build a professional staff to distribute Wilshire consulting, technology and asset management services throughout Asia, Mr. Nesbitt said.
Michael J. Donoghue, chairman of the $240 million Worcester County Retirement Board, Worcester, Mass., called on pension systems around the state to explore the feasibility of setting up REITs to invest in ``brownfield'' sites - polluted and abandoned industrial property.
Mr. Donoghue, who is also the county treasurer, said proposed state legislation might make some of the sites potentially attractive to real estate and venture capital investments.
The legislation would alleviate for new investors clean-up responsibility and liability for hazards caused by former industrial activity. The proposal will be considered when the legislative session opens in January.