New Jersey Division of Investment, Trenton, is searching for a new director to replace Roland M. Machold, who plans to retire next June. Mr. Machold plans to spend more time with his family, said a spokeswoman who declined to be identified.
Mr. Machold was on vacation and could not be reached for comment.
The new director will oversee internally maaged investments totaling around $65 billion.
Piper Jaffrey Cos., Minneapolis, settled its final derivatives class-action suit and a related suit for a total of $6.6 million, and set aside another $24 million for costs related to derivatives losses at its money management subsidiary.
The class-action settlement involves shareholders of a fund in which Piper was the subadviser: the Managers Intermediate Mortgage Fund, a no-load open-end mutual fund that was managed by The Managers Funds. The related suit was with First Commercial Trust. First Commercial purchased shares of the Managers Intermediate Mortgage Fund, as well as other Piper subadvised funds: the Managers Short Government Fund and the Managers Short and Intermediate Bond Fund, said an outside attorney for Piper.
The $24 million covers the estimated remaining cost of litigation and regulatory inquiries relating to funds or assets managed by Piper Capital Management and other litigation.
The Pension and Welfare Benefits Administration is planning to examine investment management fees, administrative costs and other 401(k) retirement plan expenses charged to participants, and will hold a public hearing on Nov. 12 to gather information. Assistant Labor Secretary E. Olena Berg had recently expressed concerns about these fees.
The PWBA also has begun working on educational materials about expenses for workers covered by employer-sponsored retirement plans. The PWBA intends to monitor these fees and review the amount of information participants receive about them.
New York City Teachers' Retirement System generated a 20.4% total return for the fiscal year ended June 30, said Donna Anderson, CIO for the $20.6 billion fund. The Trust Universe Comparison Service returned 20% for the same period, she said.
The fund outperformed every benchmark within its various asset classes except for international fixed income, which returned 2% for the year ended June 30, compared with a 2.25% return for the Salomon Non-U.S. World Government Bond Index. International fixed income comprises less than 1% of the total assets of the fund.
Property prices in most markets are still below replacement costs, but not for long, said Phil Wharton, CEO of Property Information Exchange, a database that tracks commercial property transactions nationwide.
Asking prices for office properties jumped 8% to $86.55 per square foot in the third quarter, from $80.42 during the same period last year. Asking prices for shopping centers have increased nationally by 15.5% to $114.61 a square foot in the third quarter, from an average of $99.42 during the same period last year. Asking prices for apartments slipped almost 2% nationally to $57.69 per square foot nationally from $58.75 a year ago.
Investment in U.S. real estate from Asian sources from Jan. 1, 1993, and Dec. 31, 1996 totaled $6.3 billion, according to E&Y Kenneth Leventhal Real Estate Group. Purchases of $2.2 billion from Hong Kong led the way. California was the favorite target for capital with $1.4 billion, and hotels were the hottest property, accounting for $2.7 billion.
Japanese investors continued to be sellers of American property selling $23.6 billion during the period. The number is misleading because it is based on purchase price. The vast majority of Japanese investors sold their U.S. holdings at a loss.
State Street Corp. reported net income of $101 million in the third quarter, up from $74 million a year earlier. Revenue grew 30% to $612 million. Total assets under custody increased 38% to $3.8 trillion. Total assets under management increased 35% to $379 billion compared with a year earlier.