Pension asset detour eyed
State Treasurer Joseph D. Malone proposed to use $2 billion that may be cut from future pension contributions because of good investment performance to help finance the Big Dig, a massive underground road project. But Gov. William Weld would like to use the money to accelerate the funding schedule of pension liabilities.
A spokesman for the treasurer said Mr. Malone, although he prefers using the funds for the road project, could support the governor's idea. The Legislature would have to act on the proposals, and could decide to appropriate the money elsewhere.
Carter leaving Connecticut
Gary Carter, chief investment officer for the $13.8 billion State of Connecticut Retirement & Trust Funds, will leave at the end of March to become chief financial officer at Aetna Business Resources. Greg Franklin will be interim CIO.
Joint venture formed
Callan Associates and Bacon & Woodrow will form a joint venture, based in London, to expand their asset consulting practice to multinational clients and other international clients.
Callan and Bacon & Woodrow announced last year they were teaming up to share money manager databases and work jointly for multinational pension clients on investment and custodial issues.
New rule on terminations
The PBGC will propose a regulation to extend the deadline for filing a standard termination notice to 180 days from 120 days. Plan administrators also would have 120 days, up from 60 days, to distribute plan assets after they receive approval from the IRS.
The proposal also would require administrators to inform participants about state guarantees that apply to their benefits if something happens to the annuity provider.
AMG makes 8th acquisition
Affiliated Managers Group acquired a majority interest in Gofen & Glossberg, a money manager with $3.2 billion in assets. Terms were not disclosed.
Current management will be retained and receive an equity interest in the firm after the closing, expected in the second quarter.
CalPERS mulls change
CalPERS staff is recommending the fund begin a continuous RFP process for external equity money managers, instead of one conducted every three to five years. The new process would result in the staff monitoring a pool of money managers in addition to those it uses.
When a manager is terminated, a manager from the pool could be quickly hired as a replacement.
Bill introduced on decimals
Rep. Michael G. Oxley, R-Ohio, and Rep. Edward J. Markey, D-Mass., introduced legislation to require the SEC to adopt rules within a year switching stock trading to the decimal system from increments of one-eighth.
Mr. Oxley, chairman of the House Subcommittee on Finance and Hazardous Materials, plans to hold hearings in mid-April.
U.S. equity allocation hiked
The $155 million Coral Gables (Fla.) Retirement System raised its U.S. equity allocation to 65%from 50%and reduced fixed income to 35%from 50% said Donald Nelson, finance director. The change won't affect its manager lineup; assets will be reallocated among existing managers.
Miami Beach hires
The $200 million Miami Beach General Employees Retirement System hired PanAgora Asset Management for $50 million in an enhanced bond index fund.
PanAgora will replace Nicholas-Applegate, an active fixed-income manager. The change was made because of a preference for indexing.
Dorn Helliesen & Cottle assisted.
MIT picks State Street
Massachusetts Institute of Technology hired State Street Bank as custodian for its $2.6 billion endowment, said Allan Bufferd, deputy treasurer. State Street replaces BankBoston.
MIT's $2.4 billion pension fund also retained State Street Bank as its custodian, he said.
Miami University taps BEA
Miami University selected a commingled fund managed by BEA Associates for a roughly $5 million allocation to high-yield bonds, said Harold Gibbons, director of financial affairs. The school has more than $125 million in endowment and foundation assets.
BEI adds options
BEI Electronics Inc. added two investment options to its $67 million 401(k) plan. William T. Aber, director-human resources, said BEI added the Templeton Foreign Fund and the Beacon Hill Mutual Fund to its four existing passively managed funds.
Risk pool taps Barnett
The $36 million Florida Community College Risk Management Consortium hired Barnett Bank to manage $30 million in U.S. fixed income. Previously, all of the assets were invested through the Florida State Board of Administration, which will retain $6 million.
NYC Deferred Comp hires
The $2.2 billion New York City Deferred Compensation Plan hired T. Rowe Price to manage $43.4 million in international equities. T. Rowe Price replaces Morgan Stanley Asset Management. Mercer assisted.
Failor leaves PG&E
James L. Failor joined Bankers Trust as vice president of client services in the investment management unit, a new position. He previously was director of investments and benefits finance at Pacific Gas & Electric, where he has not been replaced yet.
Charlotte taps new chief
Merle Wilkins was named administrator of the $160 million Charlotte (N.C.) Firefighters' Retirement System, replacing Robb Hubbs, who left last year.
Ms. Wilkins was executive director for the Austin (Texas) Employees' Retirement & Pension Fund. Caroline Tollefson is acting executive director there.
Wiles starts own firm
Christopher H. Wiles, former senior vice president and the portfolio manager of the Federated Investors Equity Income Fund, started his own money management firm, Rockhaven Asset Management.
The firm will manage assets for individual and institutional investors, introduce an equity income mutual fund and act as a subadviser for mutual funds. Mr. Wiles is president and CIO of the company.
Linda Dussell, vice president and manager of the Federated Utility Fund, will assume management of the Equity Income Fund.
Johnstone joins Aberdeen
Bill Johnstone has been appointed to the new position of director of institutional sales and marketing of Aberdeen Trust. He will spearhead the Scottish manager's push into the U.K. institutional investment arena. Mr. Johnstone formerly was sales and marketing director at Edinburgh Fund Managers, where his duties have been assumed by Nigel Whittingham.
