CALPERS AND THE NEW YORK City Employees' Retirement System will support a shareholder proposal asking RJR Nabisco at its April 16 annual meeting to stop using the Joe Camel advertising campaign by 1998, unless research shows the ads do not promote underage smoking.
The $29.5 billion NYCERS fund's proxy committee yesterday voted to support the resolution sponsored by Interfaith Center on Corporate Responsibility members, said Marty Rosenblatt, a trustee. The $110 billion CalPERS board voted to support the resolution March 17.
The $58 billion New York State Teachers' Retirement System has not voted on the issue, but its proxy policy aspells out the system's support for investor resloutions seeking to end tobacco advertising aimed at youth, said Robert DeLuca, director member relations.
BALTIMORE RETIREMENT Systems is conducting a "top to bottom" review of manager performance and asset allocation that could result in some manager changes, said Thomas P. Taneyhill, administrator. The $2.7 billion system - made up of the Baltimore Employees' Retirement System and the Fire and Police Retirement System - hopes to complete its review in a few months, Mr. Taneyhill said.
The system now has 48% in U.S. equities, 12% in international equities, 19% in tactical asset allocation, 17% in domestic fixed income, and 4% in real estate. The review was initiated following the recent appointment of Mr. Taneyhill as administrator. After serving as acting administrator, he took over from Ernier Glinka, who retired in July.
THE FLORIDA STATE Board of Administration, Tallahassee, is adding high-yield bonds to its fixed-income portfolio, said Barbara Jarriel, CIO-fixed income. The $62 billion fund will commit 1.3% of assets to the bonds, she said. The fund pland on screening new managers and compiling a candidate list using the Wilshire Compass database. The search should be completed by July.
Fund officials also are still searching for a MSCI EAFE manager and a domestic larfe-cap value manager, she said. Specific amounts have not been determined for the searches. The international search should be completed in the next few weeks; the large-cap search is still in the initial screening phase.
Ennis Knupp & associates is assisting.
THE CITY IF ROANOKE (Va.) is considering a search for a small-to midcap equity manager for its $236 million pension fund. The new firm would replace Newbold's Asset Management, which was terminated for performance reasons, said Doris Peters, administrator. A search has not yet started. No timetable or amount has been set Newbold's ran $30 million, said Joyce Sparks, fund accountant. Newbold's officials declined to comment. Fiduciary Capital Advisors is assisting.
ONLY THE LARGEST full-service mutual fund companies stand a chance of success, a study by Federal Reserve economists Phillip Mack and Sean Collins says.
The study found that full-service vendors reach economies of scale with more than $20 billion, based on analysis of data from Lipper Analytical on 621 U.S. mutual fund complexes. For mutual fund families concentrating on single asset classes, economies of scale can be reached at about $4 billion for bonds, $10 billion for money market funds and $800 million for equities. But with better possibilities for the outsourcing of fund administration and distribution services now, smaller managers may be able to eke out a living on less, the study said.
The study also found the largest fund companies, with average of $85 billion under management, had average annual expense ratios of 0.7%. The smallest companies, with an average of about $33 million, had expense ratios of 2.8%. The average annual expense taio of all 621 companies was about 1.5% and the average asset pool was $3 billion.