Investment Management Weekly articles from August 2003

Investment Management Weekly archives from August 2003

At Press Time.
August 4, 2003... REITs Are On The Rise The second quarter saw real-estate investment trusts (REITs) return 11.1%, according to the Bloomberg REIT Index. Over the last year, the index jumped 10.1%, marking total returns of 13.9%. The uptick represents...

Sources: Lights Out for BlackRock at GE.
August 4, 2003... The pension trust of the $78 billion General Electric Co. has terminated money manager BlackRock Inc. after almost 10 years together, according to industry sources. BlackRock managed a collateralized mortgage obligation portfolio for GE...

Nevada State Treasurer Seeks Bond Managers.
August 4, 2003... The State of Nevada Office of the Treasurer has launched two searches for managers to oversee its general portfolio and its local government long-term investment fixed-income accounts. The mandates for both searches are $100 million and...

Study: Risk Assessment Trends Are Changing.
August 4, 2003... Fluctuating market performance over the last four years has caused similar instability in the frequency in which plan sponsors reassess their liability risks, according to a new study by Greenwich Associates, a Connecticut-based industry...

University Seeks P.E., Hedge Fund Managers.
August 4, 2003... The $90 million Rowan University Foundation is searching for up to two market-neutral money managers as the endowment makes its maiden foray into hedge funds, according to a source familiar with the foundation's plans. Senior Fund Officer...

Chicago Launches Dual $25m Searches.
August 4, 2003... The $600 million Chicago Park Employees' A&B Fund has launched searches for a $25 million private-equity manager and a $25 million real-estate manager, the plan's Executive Director Joseph Fratto said. The two searches are being...

Idaho to Launch Consultant Search.
August 4, 2003... The $6.6 billion Idaho Public Employees' Retirement System will launch a "targeted" search for a general consultant in the coming months, Idaho Chief Investment Officer Robert Maynard said. "This search is not a general request for proposal...

LACERA Issues Consultant RFI.
August 4, 2003... The $24 billion Los Angeles County Employees' Retirement Association has issued a request for information (RFI) for a general consultant. LACERA Deputy Chief Investment Officer Lisa Mazzocco said that the search was being launched to open...

Santa Barbara Taps Fidelity for EAFE.
August 4, 2003... The $1.3 billion Santa Barbara County Employees' Retirement System has selected Fidelity Investments to oversee a $59 million Europe, Australasia and Far East (EAFE) account, Santa Barbara Senior Fund Officer Oscar Peters said. Fidelity...

IPERS Bins Real-Estate Search, Axes Heitman.
August 4, 2003... The $16 billion Iowa Public Employees' Retirement System has shelved plans for a real-estate search that would have filled the void left by the departure of PMRealty Advisors, IPERS Real Estate Investment Officer Pat Reinhardt said. The...

L.A. 911 Nears Actuary Decision.
August 4, 2003... The board of the $12 billion Los Angeles Fire & Police Pension has arrived at a list of finalists for a new actuarial consulting contract, Los Angeles Employee Benefits Officer Edward Griffiths said. Segal Advisors, Mercer Investment...

MERS Taps Finalists for Int'l Searches.
August 4, 2003... The investment committee of the $3.7 billion Municipal Employees' Retirement System of Michigan has arrived at a list of three finalists for pending international equity mandates totaling $100 million, Director of Investments Jeb Burns said....

Big Easy Hires Mgrs., Plots Review.
August 4, 2003... The $400 million New Orleans Employees' Retirement System has hired six new managers to manage approximately $8.5 million for its hedge fund allocation and will review its entire alternative investment portfolio in the coming months. New...

RockBridge Sets Up Real-Estate Fund.
August 4, 2003... RockBridge Capital has created a real-estate fund RockBridge Real Estate Fund II, RockBridge VP Brett Alexander said. With a targeted equity capital of $100 million, the fund is already halfway there, he said. "Our first closing was...

Hancock's Conrad Finds Security in Alternatives' Nature.
August 4, 2003... Given the intangibility and impermanence of so many investment vehicles, there's something downright reassuring about being able to take a drive into the country and pick an apple off your alternative investment, Hancock Agricultural Investment...

At Press Time.
August 11, 2003... Execs Upbeat on Recovery Senior executives at U.S. multinational companies are upbeat about the prospects of the nation's economy over the next 12 months, according to a new survey conducted by PricewaterhouseCoopers' Management Barometer....

Texas Fund Cleans House In Small, Mid Cap.
August 11, 2003... The $20 billion Texas Permanent School Fund has terminated all of its small- and mid-cap equity managers with the exception of FIS Funds Management, and could likely search for managers to replace them, TPSF spokeswoman Suzanne Middlebrook...

Merced Eyes Hedge Funds, Private Equity.
August 11, 2003... The $380 million Merced County California Retirement System has completed an asset liability study that could result in searches that potentially include hedge funds and private equity, Merced Chief Investment Officer Richard Stensrud said. ...

Private Equity In the Red at CalPERS, CalSTRS.
August 11, 2003... The private equity portfolios of the California Public Employees' Retirement System and the California State Teachers' Retirement System have sunk deeper into the red in 2003, further compounding two years of negative returns according to...

Philly Retools Bond Search.
August 11, 2003... The $5.3 billion Philadelphia Board of Pensions & Retirement has dashed plans that would have led to the hiring of two fixed-income managers for combined mandates of approximately $200 million, Philadelphia Chief Investment Manager Anthony...

Texas Plan Taps Schott as Director.
August 11, 2003... The $1.2 billion San Antonio Fire & Police Pension Fund has appointed Warren Schott as its new executive director after a nationwide search. His appointment was effective Aug. 1. Schott served as the plan's interim director after Larry...

San Joaquin Takes Charge of Search.
August 11, 2003... The $1.2 billion San Joaquin County Employees' Retirement System has directly contacted 13 consulting agencies in its search for a real-estate consultant, breaking from the tradition of issuing requests for proposal, San Joaquin Senior Fund...

Ohio Teachers' Director Steps Down.
August 11, 2003... Ohio State Teachers' Retirement System Executive Director Herb Dyer announced his resignation last week, Ohio State spokeswoman Laura Ecklar said. Dyer and the Ohio STRS came under fire in recent weeks over investment practices and bonuses...

Ohio 911 Ousts Lend Lease, Hires Two.
August 11, 2003... The $7.3 billion Ohio Police & Fire Pension Fund has terminated Lend Lease Real Estate Investments from all four real-estate accounts overseen by the manager, OPFPF Communications Manager Amy Hoiland said. At the end of its tenure with the...

Dallas 911 Wraps Up Bond Searches.
August 11, 2003... The $2 billion Dallas Police & Fire Pension System is down to four finalists in a search for two global-bond aggregate mandates valued at $95 million each, Dallas Pension Administrator Richard Tettamant said. The search was ramped up at...

Fidelity Investments Spins Off Geode.
August 11, 2003... Fidelity Investments has spun off its Geode Investors unit into a separate entity, according to firm officials. Geode, which uses similar investment techniques as hedge funds, was founded two years ago and invests money of senior Fidelity...

GP Funds Makes Institutional Push.
August 11, 2003... GP Funds-a subsidiary of the Global Partners Group-has appointed Charles Provini as its new executive VP of asset management and Paul Kuruzovich as senior VP of marketing in an effort to reach institutional investors. Provini, who was most...

Affinity Investments Hires New VP.
August 11, 2003... Affinity Investment Advisors has hired Anthony Goo to facilitate business for its Hawaiian clients, said Greg Lai, managing director at the firm. As head of marketing and sales in Hawaii, Goo will focus on the firm's managed money...

Vanguard Jumps On ETF Bandwagon.
August 11, 2003... Vanguard Group plans to beef up its investment offerings by adding 11 new index funds and 20 Exchange Traded-Fund versions of its mutual funds. The Valley Forge, Pa.-based money manager has filed a registration statement with the Securities and...

Overture's DuMond Adds Agility to Allocations.
August 11, 2003... Overture Asset Managers President and CEO Douglas DuMond said plan sponsors should be aware that there is a way to take advantage of changing investment opportunities even when locked into a fixed asset allocation. The trick, he said, is...

At Press Time.
August 18, 2003... IMW Unplugged Investment Management Weekly was unable to publish this issue on time due to the blackout that hit the Northeast last week. The publication is now back on schedule. Please check our Web site, www.IMWeekly.com, for...

San Bernardino Gears Up for Multiple Searches.
August 18, 2003... The results of an asset liability study for the $3.2 billion San Bernardino County Employees' Retirement Association recommend three new asset classes for the fund, which could lead to searches beginning as early as next month, San Bernardino...

LACERS Adds Room to Alternatives Portfolio.
August 18, 2003... The investment committee of the $8.9 billion Los Angeles City Employees' Retirement System has directed a portion of its current alternative allocation to "non-traditional alternative investments," LACERS Chief Investment Officer Daniel...

ACERA Plots International Equity Search.
August 18, 2003... The $3.4 billion Alameda County Employees' Retirement Association took steps last week toward a search for a value-oriented international equity manager, ACERA Chief Invest-ment Officer Betty Tse said. During its Aug. 13 meeting, the...

Oklahoma City Seeks Int'l Growth Manager.
August 18, 2003... The $354 million Oklahoma City Employees' Retirement System will launch a search for a international growth manager to oversee 5% of the plan's total, or approximately $17 million, as early as October, Oklahoma Retirement System Manager Rena...

Illinois Pauses On Consultant Search.
August 18, 2003... The $5 billion Office of the Illinois State Treasurer has postponed its search for external investment consultant services in favor of an internal consultant, Treasury Deputy Chief of Staff Martin Noven said. The search was initiated in...

Houston Firefighters' Picks Finalists.
August 18, 2003... The $1.7 billion Houston Firefighters' Relief & Retirement Fund has narrowed its list of candidates for its active large-cap core search to three finalists. Houston Firefighters Chief Investment Officer Christopher Gonzales declined to...

Iowa Re-Signs Buck.
August 18, 2003... The State Treasurer of Iowa has awarded incumbent Buck Consultants a new four-year contract to assist both the $211 million Iowa Peace Officers' Retirement System and the $72 million Iowa Judicial Pension Fund with investment decisions, Iowa...

MLIM Hires Palmer.
August 18, 2003... Merrill Lynch Investment Managers has appointed John Palmer as its new director of Midwest endowment, foundation and corporate sales. Palmer, who was most recently the executive director of sales at Morgan Stanley, joined the firm in...

Hancock Hires Fraise, Marchand for Fund.
August 18, 2003... George Fraise and Gordon Marchand have joined the team of John Hancock Advisors as managers of the John Hancock U.S. Global Leaders Growth Fund, John Hancock spokesman Brian Carmichael said. Fraise and Marchand are also principals of a...

Budget Battle Costs Texas Permanent School Fund Active Management.
August 18, 2003... Paying the price for performance when it comes to investment returns has become a hot issue for the $20 billion Texas Permanent School Fund. The endowment recently terminated all but one of its active small-cap and mid-cap equity managers,...

Taskforce to Set Rules For Sell-Side Research.
August 18, 2003... Buy-side and sell-side industry group the Association for Investment Management and Research, along with the National Investor Relations Institute, is in the process of developing ground rules regarding the relationships between sell-side...

Shareholder Proposals Hit Record High.
August 18, 2003... Shareholder proposals hit 775 to date this year, a new high and a significant increase over the 529 received in 2002, Investor Responsibility Research Center figures showed. Executive pay emerged as the primary sticking point for many...

Van Kampens' James Gilligan Sees Value in Profit.
August 18, 2003... James Gilligan, managing director of the equity income team for Van Kampen Funds Investments, a subsidiary of Morgan Stanley Investment Management, looks for something in companies that many of his peers in the value investing world tend to...

At Press Time.
August 25, 2003... Invesco Consolidates Invesco last week announced it would combine its Invesco Private Capital Group and Invesco Realty Advisors Group to form a new business unit, the Invesco Alternatives Group. Invesco Realty CEO David Ridley will assume...

Illinois Teachers' Plot Multiple Searches.
August 25, 2003... The $23 billion Teachers' Retirement System of the State of Illinois has launched a search for core fixed-income manager to replace the recently terminated Morgan Stanley Investment Management and will launch searches for real estate, private...

Arizona Gets Ready for Real-Estate Searches.
August 25, 2003... The $18.7 billion Arizona State Retirement System is searching for a real-estate analyst and real-estate consultant to direct a new allocation to the asset class, plan spokesman David Canella said. An allocation of up to 6%-or approximately...

Plan Sponsors Pay When Personalities Clash.
August 25, 2003... Two weeks ago, Massachusetts State Pension Fund Director James Hearty was sent to pasture after only two and a half years of service and a record of investment returns that beat the plan's benchmark by over 60 basis points in the first half of...

Tennessee Plan Seeks Real Estate Advisors.
August 25, 2003... The $23 billion Tennessee Consolidated Retirement System (TCRS) has launched a search for two new real-estate advisors, Director of Real Estate Peter Katseff said. The searches are being conducted by the plan's real-estate consultant The...

Merced Adds P.E., Searches Imminent.
August 25, 2003... The investment committee of the $380 million Merced County Retirement System has given the greenlight to a first-time private equity allocation of 5% of the plan's total value, Chief Investment Officer Richard Stensrud said. The adoption...

MERS Seeks Int'l Small-Cap.
August 25, 2003... The $3.7 billion Municipal Employees' Retirement System of Michigan (MERS) is searching for an international small-cap manager to the tune of approximately $90 million, MERS' Director of Investments Jeb Burns said. A new international...

Oregon Reforms Pension Board.
August 25, 2003... Oregon Governor Ted Kulongoski has appointed a new five-member board of trustees for the $37 billion Oregon Public Employees' Retirement System and has eliminated the plan's former 12-member structure-a move that was the result of recently...

New Board at Oregon PERS.
August 25, 2003... On Aug. 13, Oregon Governor Ted Kulongoski appointed the following individuals as board members of the $37 billion Oregon Public Employees' Retirement System: James Dalton, VP of Tektronix; Eva Kripalani, senior VP for KinderCare Learning...

San Jose Plan Seeks Deputy Exec. Director.
August 25, 2003... The $1.6 billion San Jose Police & Fire Retirement System has initiated a search for a new deputy executive director. Debbie Warkentin, administrative assistant at the plan, said that the position was vacated when Ina Lancaster, the plan's...

Missouri Finalizing Timber Search.
August 25, 2003... The $5.2 billion Missouri State Employees' Retirement System is close to completing its search for a real-estate manager to engage in the plan's first investment in timber, plan spokeswoman Meg Cline said. Cline declined to reveal the size...

Barclays Adds New Trading Pro.
August 25, 2003... Barclays Global Investors (BGI) has hired Ananth Madhaven as its managing director and global head of trading research, said BGI spokeswoman Christine Hudacko. Madhaven, most recently the managing director of research of ITG, Inc., will...

Kayne Anderson Ousted by Pa. Plan.
August 25, 2003... The approximately $148 million Luzerne County Retirement System has removed Kayne Anderson Rudnick Investment Management from its manager lineup, said Steve Flood, Luzerne County Controller. The money manager was responsible for a $3...

Rhode Island Re-Hires Actuary.
August 25, 2003... The $5.3 billion Rhode Island Employees' Retirement System has rehired its incumbent actuary Gabriel, Roeder, Smith & Co. following an open search process, Rhode Island spokeswoman Stephanie Sheehan said. Faced with the expiration of its...

SEC Posts Proxy Reform Proposal.
August 25, 2003... The Securities and Exchange Commission okayed a proposal requiring greater disclosure in proxy forms at an Aug. 6 meeting, but it held off on the most controversial aspect of its recent staff report: Allowing shareholder nominations on...

Innovest's Frank Dixon on Profiting Responsibly.
August 25, 2003... When it comes to spotting companies run by responsible management who understand the costly repercussions of pollution, waste and neglect, Frank Dixon, managing director of Innovest Strategic Value Advisors, says that many companies may talk...