Oklahoma Gas & Electric, Oklahoma City, is considering adding four mutual funds to its $170 million defined contribution plan.
The plan has eight options provided by Fidelity, and is looking to fill in the gaps in asset classes with a different manager, said Sonny Lane, manager, employee benefits. The board has yet to approve adding fund options and will discuss the issue at its July meeting. Dean Witter Consulting is assisting.
Purdue University, West Lafayette, Ind., is keeping a close watch on the international equity managers for its $800 million endowment fund.
The Common Fund, T. Rowe Price Associates and State Street Global manage a total of $25 million for the fund. Officials have been concerned about the overall performance of the asset class, said James E. Benken, director of investments. The investment committee has been particularly wary of the firms' Japan weightings in relation to the MSCI EAFE benchmark. The issue is an ongoing agenda item and will be discussed at the March 26 meeting of the investment committee.
Other U.S. pension funds probably will follow the lead of CalPERS to suspend trading with the brokerage firm Nomura Securities, said Charles Valdes, chairman of the $110 billion fund's investment committee.
He said acts committed by some Nomura Securities executives will be discussed by the Council of Institutional Investors, which meets Monday in Washington.
According to Nomura officials, two of its executives made unauthorized stock trades to funnel profits to big customers. Mr. Valdes said CalPERS could take further action, pending actions taken by the Japanese government.
U.S. pension fund assets jumped to $6.3 trillion in 1996, a 13.5% increase from the previous year, the Federal Reserve says.According to the Federal Reserve's Flow of Funds report for 1996, pension fund assets are larger than the $2.2 trillion in life insurance assets and the $2.3 trillion in mutual funds combined.
Private pension funds comprised the largest portion of assets and the largest percentage gain, climbing 15.2% in 1996 to $3.1 trillion. State and local funds jumped 13.6% to $1.7 trillion in 1996. Insured pension assets - those managed in insurance company general accounts - were up 9.5% to $1.1 trillion. Federal pension funds grew 11.8% to $419 billion.
Mutual fund holdings for private pension plans jumped 53% to $411.1 billion in 1996. Corporate equities had sharp increases within private and state and local pension fund holdings, rising 17% for private funds to $1.3 trillion and 27.4% to $948 billion for state and local funds.
The trial between four Wellington Management partners and former partner Arnold C. Schneider was postponed until March 24. The trial, originally scheduled for yesterday, was postponed because of a scheduling conflict in the Cambridge, Mass., court.
The Wellington partners are seeking damages of $1 million against Mr. Schneider for breaching a non-compete clause in his partnership agreement and his fiduciary duty when he left to start Schneider Capital Management. Mr. Schneider countersued, seeking benefits and compensation that could exceed $1 million, he also is seeking to lift an injunction that barred his former clients from hiring his new firm.
Variable annuity partners Fidelity Investments and Nationwide Financial Services expanded options in the variable annuity program it offers through brokerage houses and banks.
The Fidelity Advisors Annuities series offered through Nationwide now offers 13 VIP funds, up from six.
SEARCHES & HIRINGS
Illinois Municipal Retirement Fund, Oak Brook, hired Brandes Investment Partners to manage $100 million in a new global equity mandate.
The $10.1 billion fund already uses Brandes for international equity and decided to expand into global investments, said Walter J. Koziol, director of investments. The new global portfolio will be funded with cash.
William M. Mercer Investment Consulting assisted. Brandes now manages $143 million for the pension fund.
Johnson Controls Inc., Milwaukee, chose its first two non-Fidelity options for its $750 million 401(k) plan, said Scott Grennier, senior treasury analyst. Johnson selected two equity funds, the Strong Common Stock Fund and the Janus Fund, Mr. Grennier said. Johnson will continue to use Fidelity as its record keeper, he said.
The changes were made mainly in response to participant requests for more options, he said. The plan now offers 15 options.
WHO'S NEWS
Martin A. Kamarck joined AEW Capital Management in the newly created position of chief operating officer, a spokeswoman for the firm said. Mr. Kamarck was president and chairman of the Export-Import Bank of the United States, a presidential appointment
