AIMR completed a draft of global performance presentation standards for international money managers in an effort to create a single set of rules for presenting performance worldwide, said Michael S. Caccese, AIMR general counsel.
The standards will be similar to the guidelines used by U.S. managers but will address several country-specific issues. AIMR staff plan to present the draft to its global standards committee in London next week. The rules will be circulated for comment and a final version should be completed in 1998.
New Orleans Firemen's Retirement System officials are working to get a bill introduced in the state Legislature to raise the cap on equity investment by public funds, said Richard Hampton, secretary, treasurer and administrator for the $150 million fund.
``We're missing a lot of opportunity'' not being able to invest more than the mandated 55% cap for equities, Mr. Hampton said. He thinks legislators are ``amenable'' to change, though not as high as the 75% cap he wants; a rise to 65% would be more likely, he said.
The House Republican agenda for the 105th Congress unveiled today is noticeably lacking on the issue of pensions. The 12-point agenda states only that House Republicans will work to protect the Social Security system and will seek expansion of tax-deductible individual retirement accounts.
HIRINGS
The Baltimore City Retirement Systems hired the Milwaukee office of Loomis Sayles to manage $320 million in fixed income, said Harry Deitchman, chairman.
Loomis will manage $200 million in immunized assets and $120 million in intermediate fixed income for the $2.6 billion fund, Mr. Deitchman said. Loomis replaces Lincoln Capital Management, which was terminated for reasons Mr. Deitchman declined to specify.
Evaluation Associates assisted.
Arkansas Teacher Retirement System, Little Rock, hired Hyperion Capital Management for a $100 million mortgage-backed securities portfolio, said G. Wayne Greathouse, associate director-investments. Assets will come from cash reserves held by equity managers as the $5 billion fund trims its equity exposure slightly, he said.
Strathclyde Pension Fund, Glasgow, named Hill Samuel Asset Management to manage a £100 million U.K. small-cap equity mandate. The fund has £4.2 billion ($6.8 billion) in assets.
Hill Samuel replaces M&G Investment Management. While M&G met its performance target, returns had weakened toward the latter part of the period, said Geoff Singleton, Strathclyde Regional Council's deputy director of finance. Changes in the portfolio manager also was a significant factor, he said.
Richard Hughes, head of U.K. equities at M&G, said the small-cap team had been strengthened, ``but there has been a change and that does cause uncertainty.''
Hymans Robertson was the consultant.
Oregon State University Foundation, Corvallis, hired Rowe-Price Fleming International as the first international equity manager for its $140 million endowment fund.
The $15 million will come from cash. The investment committee added the asset class after repeated recommendations from consultant R.V. Kuhns & Associates, said foundation CFO Ronald Theberge.
University of St. Thomas, St. Paul, Minn., with $170 million in endowment and miscellaneous assets, hired Ark Asset Management to manage $15 million in large-cap value equities, said Carol Peterfeso, assistant treasurer. Assets came from a reallocation among managers and the termination last year of Sanford Bernstein, which had managed large- and small-cap value equities.
Separately, St. Thomas hired the Clifton Group to use futures contracts to invest idle cash balances in U.S. equity and U.S. fixed income markets, she said.
Philadelphia Municipal Pension Fund, with $2.83 billion in assets, hired two alternative investment managers: Texas Pacific Group Partners II to run $15 million, and Fairview Capital II to manage $10 million.
The investments are being financed with cash, said Joseph J. Herkness, executive director.
Chattanooga (Tenn.) Fire & Police Pension Funds hired two real estate managers for its first move to REITs, said Marty Cowley, pension fund administrator. LongLeaf Partners, a REIT run by Southeastern Asset Management, and ABKB LaSalle are getting $7.5 million each. Assets came from a reallocation. The fund has $143 million in assets. Gerber Taylor Associates assisted.
San Francisco City & County Employees' Retirement System board approved investing an additional $15 million for a total of $30 million in First Reserve Fund II, an oil and gas fund. The $8 billion fund has about 4% of assets committed to alternative investments. The allocation will come from cash
