Investment Management Weekly articles from April 2003

Investment Management Weekly archives from April 2003

High-Yield Bonds Flourish.
April 7, 2003... Standard & Poor's fund advisor service said the winning streak that began for high-yield bond funds late last year continued into 2003 as assets flowed into the category. Investors poured nearly $8.6 billion into high-yield bond funds...

Oregon Plan Ponders Int'l Equity Search.
April 7, 2003... The $35 billion Oregon Public Employees' Retirement System, in July will consider searches for international equity managers with mandates that could be over $100 million, OPERS Assistant Investment Director Michael Mueller said. The plan...

Illinois Plan Eyes Int'l Equity Searches.
April 7, 2003... The $14 billion Illinois Municipal Retirement Fund is ironing out the details of new manager searches for international equity mandates, IMRF Director of Investments Walter Koziol said. The exact number of searches and the dollar value of...

Ohio 911 Launches International Equity Search.
April 7, 2003... The $7.3 billion Ohio Police & Fire Pension Fund has launched a search for one or more international equity managers to oversee assets of up to $700 million. The search replaces Smith Barney Capital Management, which was recently...

Vermont Searches for Small-Cap Manager.
April 7, 2003... The $1.1 billion Vermont State Teachers' Retirement System has launched a $50 million search for a small-cap value manager, State Treasurer Jeb Spaulding said in a request for proposals (RFP). Amanda Martin, the plan's consultant with New...

New Hampshire Plans Liability Study.
April 7, 2003... The $4.3 billion New Hampshire Retirement System will embark on an asset liability study this September, NHRS Senior Fund Officer J.P. Singh said. The study, which will be conducted jointly by Evaluation Associates and Buck Consultants,...

Mass. Plan Seeks Real Estate Manager.
April 7, 2003... The $525 million Middlesex County Retirement System has launched a search for a manager to oversee a $10 million real estate mandate, Middlesex Treasurer Brian Curtin said. Jon Fabrizio of Wainwright Investment Counsel is spearheading the...

Nevada Fund Searches for Advisor.
April 7, 2003... The $37 million Nevada Higher Education Tuition Trust Fund has launched a search for an investment advisor who will act as a manager-of-managers for several upcoming mandates, Nevada spokeswoman Kathy Besser said. The deadline for...

Illinois Searches For Tech Advisor.
April 7, 2003... The $5 billion Office of the Illinois State Treasurer launched a search for an external investment consultant to direct the state's $50 million technology development account, treasury spokeswoman Lisa Drew said. Prior to the April 23...

San Francisco Nears Actuary Decision.
April 7, 2003... The board of the $12 billion San Francisco City & County Employees Retirement System has reduced a list of seven candidates down to three finalists for actuarial consulting services, San Francisco City Executive Director Clare Murphy said. ...

Ft. Worth's Stoval Leaves Plan.
April 7, 2003... Larry Stoval, senior fund officer for the $1.3 billion Fort Worth Employees' Retirement Fund has suddenly left the plan after nine months, due to family-related issues, a representative said. Stoval was hired July 2002 to replace George...

Norfolk Jumps on Hedge Fund Bandwagon.
April 7, 2003... The $325 million Norfolk County Retirement System is the latest Massachusetts municipal pension plan to venture into hedge funds. The plan has issued a request for proposal for a manager to oversee up to 5%, or an approximately $16 million,...

"Terror State" Three Addresses NY Funds.
April 7, 2003... Three mega-cap U.S. companies have moved to address the concerns of two New York City pension funds after the plans raised issue with the firms' business ties to terrorist-linked countries such as Iran and Syria. In February, the $6...

CalPERS Names 2003 Governance Focus List.
April 7, 2003... The California Public Employees' Retirement System (CalPERS) has placed six companies on its corporate governance focus list, and said these companies will be the primary focus of its corporate governance activism in the 2003 proxy season. ...

Early Indicators Nix 1Q Earnings Growth.
April 7, 2003... While the first quarter reporting season will not hit full swing until next week, pre-announcement statistics from Thomson First Call do not look promising. Research analyst Gint Rimas said the negative to positive pre-announcement ratio...

SMA Growth Will Continue, Bathon Says.
April 7, 2003... The separately managed account (SMA) industry's growth spurt looks certain to continue over the next few years, Financial Research Corp. President Neil Bathon said The SMA industry added 330,000 new investors during the first nine months...

Fiduciary Trust's Materasso: Corporate Bonds' Time Is Now.
April 7, 2003... Michael Materasso, executive VP and head of fixed-income at Fiduciary Trust Company International said investors who migrated from the uncertainty of equities to the security of treasury bonds made the right move. What's more, the time is...

Bilkey, Katz Form New Firm.
April 14, 2003... After two years of being barred from competing with the firm he helped create, Terry Bilkey, co-founder of Yanni-Bilkey Consulting-now Yanni Partners-has reemerged with Yanni consultant Jerry Katz to form Bilkey-Katz Investment Consultants. ...

New Milwaukee Board Plans Asset Changes.
April 14, 2003... The recently revamped pension board of the $1.4 billion Milwaukee County Employees' Retirement System is reviewing its asset allocation following the appointment of five new board members, said Matt James, Milwaukee's newly-appointed secretary...

Maryland Cuts Three In Restructuring Bid.
April 14, 2003... The $25 billion Maryland State Retirement & Pension System has terminated three managers as part of a massive restructuring effort at the pension fund-a move recommended by the plan's consultant Ennis, Knupp & Associates (See IMW, 3/17/03). ...

Searches Are Up, But Assets Fell Last Quarter.
April 14, 2003... Although the assets accumulated through searches last quarter fell shy of what the money management community saw one year ago, industry sources say that this should not be cause for concern. According to research compiled by Investment...

Oregon State Seeks Hedge Fund Manager.
April 14, 2003... The $664 million Oregon State University Foundation will initiate a search for a hedge fund manager in June, OSUF President Jim Reinmuth said. The amount of the mandate has not yet been set, but it could be determined by the fund's...

Imperial County Plots Changes.
April 14, 2003... The $265 million Imperial County Employees' Retirement System may commence searches for new additions to its manager lineup, Imperial County Manager Barbara McFetridge said. McFetridge added that the plan would initiate searches in the...

Lauderhill Firefighters Eye Core Bonds.
April 14, 2003... The $17 million Lauderhill Firefighters' Retirement System has launched a search for a manager to oversee a $5.5 million core fixed-income account, which could potentially replace incumbent manager Pimco. The account would be benchmarked...

Babson Taps Allen For New Post.
April 14, 2003... David L. Babson & Co. has hired Robert Allen as its head of consultant relations-a newly created position-in an effort to boost its coverage of the consultant relations sector and increase its $74 billion in assets under management. Allen,...

Florida Plan Considers Search.
April 14, 2003... The board of the $7 million City of West Palm Beach General Employees' Pension Fund may consider allocating the plan's assets to additional equity or fixed-income investments at its April 25 meeting, said Margaret Adcock, the fund's...

Segal Wins Second Term at Southbridge.
April 14, 2003... The $17 million Southbridge Contributory Retirement Board has renewed its contract with Segal Advisors as the fund's consultant, Southbridge Administrator Mary Szugda said. The Massachusetts plan initiated the search after Segal's contract...

Texas Teachers Wrap Up Asset Study.
April 14, 2003... The $80 billion Teacher Retirement System of Texas is on the verge of completing an asset allocation study that has "the strong possibility" of leading to an increase in high yield fixed-income investments, the plan's CFO Ronnie Jung said. ...

Tulare Takes Diligence To Managers' Doorstep.
April 14, 2003... The $700 million Tulare County Employees' Retirement Association is in the process of expanding its "due diligence visit" program of making in-person visits to its money managers, Tulare Senior Fund Officer David Kehler said. The visits...

Glenmede Trust Hires New CIO.
April 14, 2003... Glenmede Trust Co. has reportedly hired a new chief investment officer, according to sources familiar with the firm. Gordon Fowler, CIO of JPMorgan Chase's private bank division, is said to have been tapped to be Glenmede's new CIO,...

SEC Plans Hedge Fund Roundtable.
April 14, 2003... Smaller hedge funds could suffer if the Securities and Exchange Commission roundtable discussions next month result in changes mandating wholesale hedge fund disclosure, industry sources predicted. Filing with the SEC is "a lot of extra...

DRCM's Ian Vose "Quietly" Recruits Research Staff.
April 14, 2003... Dresdner RCM Global Investors Chief Investment Officer Ian Vose said his firm is taking advantage of a glut in available analyst talent to strengthen the DRCM's research department. "We have a recruitment drive going on in our research...

First Quarter 2003 Search Roundup.
April 14, 2003... IMW's first quarter roundup includes all completed manager search data* compiled between Jan. 1 to March 31, 2003 and analyzes the broad asset classes of domestic equity, international equity, fixed-income, alternative investments and real...

Real Estate Funds Win Out.
April 21, 2003... Real estate funds held up best in the first quarter 2003, rising 1.2%, according to Standard & Poor's Fund Advisor, an online mutual fund Web service. Biotech funds followed with a 1.0% increase, beating out health care funds, which rose...

Lend Lease's Future Uncertain at KAPERS.
April 21, 2003... Lend Lease Real Estate Investments could potentially be replaced as manager of the $8 billion Kansas Public Employees' Retirement System's $260 million core real estate account, pending the outcome of a manager search. KAPERS Real Estate...

Maryland Bins Reams, Seeks Replacement.
April 21, 2003... The $1.4 billion Montgomery County Board of Education has launched a search for a core-plus bond manager to oversee a mandate of approximately $50 million, Montgomery County Senior Fund Officer Steven Watts said. The search was launched...

Stolid Market Leaves Int'l Equities in Vogue.
April 21, 2003... International equity mandates from public pension funds are on the rise, and a wide range of market factors are playing a part in the increase, according to industry experts. In the last few months, a number of public plans, including the...

Austin Cops Put NACM On Watch.
April 21, 2003... The $250 million Austin Police Retirement System has placed Nicholas-Applegate Capital Management on watch on its $20 million large-cap value portfolio after Mark Stuckelman, the plan's portfolio manager, moved to another division within the...

St. Louis County Eyes Chartwell.
April 21, 2003... The $266 million St. Louis County Employees Retirement Plan has placed Chartwell Investment Partners on an "informal watch" for long-term performance issues on its $31 million large-cap value account, St. Louis Chief Accounting Officer Glenn...

Conflicts Spur Utah Investigation.
April 21, 2003... The $11.4 billion Utah State Retirement System has named Bruce Cundick as its interim chief investment officer, said Wayne Welsh, legislative auditor for the state. Richard Cherry, the fund's current chief investment officer, is now on...

Anchorage 911 Ups Real Estate, Hires UBS.
April 21, 2003... The $320 million Anchorage Police & Fire Retirement System has hired UBS Realty Investors to oversee a new open-ended real estate account. Charles Laird, the plan's director, said that the new account was due to an increase in the plan's...

New Mexico Swaps Putnam for Goldman.
April 21, 2003... The $6 billion New Mexico Educational Retirement Board has terminated Putnam Investments from its $475 million large-cap growth account and has hired Goldman Sachs Asset Management to oversee the mandate. The plan initiated a manager...

Nebraska Drops Alliance for Int'l Equity.
April 21, 2003... The $5.6 billion Nebraska Public Employees' Retirement System has terminated Alliance Capital Management from a passively managed account, Nebraska State Investment Officer Carol Kontor said. Kontor said the manager was terminated from a...

CRA RogersCasey Appoints Moloff.
April 21, 2003... In an effort to provide complete manager research coverage of the international equity arena, CRA Rogers Casey has hired Nancy Moloff as the director of its international equity team. Moloff, who was most recently the VP of the finance...

CalPERS Reviews Private Equity Portfolio.
April 21, 2003... Now that it has settled the year-long battle over disclosure, the California Public Employees' Retirement System (CalPERS) has begun the tedious process of evaluating each of the investments in its $6.9 billion private equity portfolio. ...

Industry Fragmentation Blurs Job Market.
April 21, 2003... Whether it's a downsized money management firm trying to gauge the best time to recruit, or an out-of-work securities analyst wondering where opportunities lie, deciphering the current job market is equally confusing. In the wake of...

Corporate Pensions Grapple with Funding.
April 21, 2003... Unless funds take a defensive stance and act accordingly to market conditions, a rocky road lies ahead, a Greenwich Associates white paper warned. "Pension fund liabilities are becoming so large they may impede the ability of American...

MLIM's McKenzie Taps Smaller Firms for Transition Management.
April 21, 2003... As investors begin to reassess the balance of their portfolios in a market that has suffered everything from painful corrections to geopolitical instability, Merrill Lynch Investment Managers Managing Director and head of public funds marketing...

Lend Lease's Problems Grow.
April 28, 2003... The $24 billion Los Angeles County Employees' Retirement Association has reportedly terminated Lend Lease Real Estate Investments from its $442 million allocation in core real estate. The manager was terminated for performance and personnel...

IPERS Gears Up for $3.9B in Index Searches.
April 28, 2003... The $15 billion Iowa Public Employees' Retirement System, will launch searches for managers to oversee approximately $3.9 billion in passive index mandates this August. In a written statement to IMW, IPERS Senior Investment Officer Karl...

San Bernardino Picks Private Equity Over LBO.
April 28, 2003... The board of the $3 billion San Bernardino County Employees' Retirement Association will initiate a search for a private equity manager, although a specific mandate has yet to be determined. Don Pierce, the plan's senior investment analyst,...

SWIB Increases Allocation to Private Equity.
April 28, 2003... The $46.3 billion State of Wisconsin Investment Board (SWIB) could double its private equity holdings when it reaches a new target allocation set by the pension fund earlier this year. The pension fund may now invest up to $3.1 billion, or...

Alameda Watches AFL-CIO Housing Trust.
April 28, 2003... The $3.4 billion Alameda County Employees' Retirement Association has placed AFL-CIO Housing Investment Trust (AFL-CIO) on watch due to "organizational changes" within the firm, Alameda Investment Analyst Belinda Zhu said. AFL-CIO oversees...

Michigan Preps For Hedge, Real Estate.
April 28, 2003... The board of the $92 million Sterling Heights General E.R.S. will make decisions on manager searches for both hedge fund and real estate investments, Sterling Pension Administrator Rick Sanborn said. The board could opt to move forward with...

Ohio Educators Seek Two in Closed Search.
April 28, 2003... The $8 billion School Employees' Retirement System of Ohio is at the mid-point of a closed search for a fixed income manager and an equity manager, plan spokeswoman Laurel Johnson said. She declined to provide the sizes of the two mandates,...

Tennessee Seeks Real Estate Consultant.
April 28, 2003... The $22 billion State of Tennessee Treasury Department has launched a search for a real estate consultant, according to a request for proposal (RFP) issued by the state. Up for grabs is a three-year contract set to begin July 1. The...

WSIB To Recruit Investment Officers.
April 28, 2003... The $48 billion Washington State Investment Board is searching for investment officers to oversee its real estate and private equity portfolios. Washington Human Resources Administrator Melanie Watness said that search for the real estate...

Imperial Terminates NACM, Hires Calamos.
April 28, 2003... The $265 million Imperial County Employees' Retirement System has added itself to the growing list of funds that have terminated Nicholas-Applegate Capital Management (NACM), and has hired Calamos Investments to the $20 million mid-cap growth...

MOSERS Hires DDJ, Reels In Private Equity.
April 28, 2003... The $5.2 billion Missouri State Employees' Retirement System has awarded DDJ Capital Management a contract to oversee a $15 million distressed debt account, MOSERS Communications Director Meg Cline said. The plan had anticipated hiring two...

El Paso 911 Sends Loomis Out To Pasture.
April 28, 2003... The $456 million El Paso Firemen & Policemen's Pension Fund has terminated Loomis, Sayles & Co. from a $47 million fixed-income account, El Paso Pension Administrator Robert Stanborn said. Poor performance was the reason for dismissing the...

Mass Plan Hires New Board Admin.
April 28, 2003... The $32 million Greenfield Town Retirement System has hired Marianna Fiske as its new retirement board administrator, replacing Marilyn Matysiewicz, who retires this month (See IMW, 3/03/03). Fiske joins Greenfield from the City of...

Colorado PERA Selects New Deputy Director.
April 28, 2003... The $23 billion Colorado Public Employees' Retirement Association has appointed Jennifer Paquette as its new deputy executive director of investments, replacing Norm Benedict, who retired from the position last month. Benedict served as...

CEP Hires Taft-Hartley Director.
April 28, 2003... Chicago Equity Partners has hired Todd Davis as its new director of national Taft-Hartley client service and sales. Davis, who was most recently a senior VP at Chicago Asset Management, joined CEP on March 17, replacing Neil Wilkinson who...

PSG Boosts Sales Team; Hires Erard.
April 28, 2003... In an effort to keep up with its successful sales platform, Portfolio Services Group (PSG), a subsidiary of The Burridge Group, has added John Erard as its executive VP and director of sales. Erard will report directly to Burridge Group CEO...

More Institutions Turn To Subadvisors.
April 28, 2003... The growing acceptance of open investment architectures by plan sponsors is increasing the use of subadvisors by institutional investors, according to industry experts. Already commonplace within the mutual fund and high-end retail...

Plan Sponsors Unite to Preserve DB Pensions.
April 28, 2003... More than 50 U.S. employers, sharing the same concern for the future of defined-benefit pensions, have banded together to form the Coalition to Preserve the Defined Benefit System. The coalition's members, sponsoring defined benefit...

Babson Rolls Out Small-Cap Offering.
April 28, 2003... In an effort to take advantage of a potential economic recovery, investment firm David L. Babson & Co. has taken its first small cap growth product past the three-year maturity mark, Babson Sales and Client Services Director Ed Bickford said....

Rydex Is Set To Launch S&P Tool.
April 28, 2003... Rydex Global Advisors is planning to unveil it's first exchange-traded fund (ETF), a spin-off of the traditional S&P 500 Equal Weight Index, said Chuck Tennes, the firm's portfolio manager. The Rydex S&P Equal Weight ETF will launch April...

Companies Bow to Dissident Pressure.
April 28, 2003... To avoid showdowns at annual meetings, companies have been nipping proxy battles in the bud this year by compromising with dissidents. On proxy advisory veteran attributes the trend to shareholders gaining stronger voice than in the past....

For Jeffrey Petersen, Ethical Investing Pays Dividends.
April 28, 2003... As the principal and director of social investments for Carlisle Social Investments, a division of Petersen Hastings Investment Management, Jeffrey Petersen and his team offer investors a unique approach that couples the moral and ethical...