Investment Management Weekly articles from August 2005

Investment Management Weekly archives from August 2005

Alaska Funds to End DB Plans.
August 1, 2005... In what has been deemed to be a "landmark legislation, the Alaska State Public Employees' Retirement System and the Alaska Teachers' Retirement System will be switching to a 401(k) style system for new employees' hired after July 1, 2006. ...

Ohio SERS to Augment Private Equity.
August 1, 2005... The School Employees' Retirement System of Ohio is gearing up to boost its private equity portfolio by up to $300 million in the coming fiscal year, bringing the plan into the upper range of its 5% target allocation, according to Ohio's...

Ohio Continues to Clean House: More Manager Terminations to Come.
August 1, 2005... As the scandal at the $14.3 billion Ohio Bureau of Workers' Compensation (BWC) continues to unfold, Oechsle International Advisors has become the latest manager to be ousted by the fund, said spokesman Jeremy Jackson. On July 14, the...

Missouri May Look for Local Investments.
August 1, 2005... The state of Missouri is looking for ways that pension funds, within the state, can help boost local business ventures, said Mark Hughes, spokesman for the office of Missouri State Treasurer Sarah Steelman. Hughes said that Steelman had...

Mo. Fund to Add Investment Pro.
August 1, 2005... The $22 billion Missouri Public School Retirement System is looking to add an investment officer to its team said Craig Husting, CIO at the fund. Husting said that the board created the new position based on the increased oversight of new...

Vanguard Portfolio Pro to Retire.
August 1, 2005... Richard Foulkes, lead portfolio manager for the $9.8 billion International Growth Fund at Vanguard Group, will retire from the firm effective Oct. 31, said Amy Chain, Vanguard spokeswoman. Foulkes, who had been with the firm for 24 years,...

PE Firm Named In Ill. Teachers' Probe.
August 1, 2005... The managing partner at the New York-based private equity firm, HealthPoint Capital has been named in the federal probe of the $34 billion Illinois Teachers' Retirement System. Joseph Cari, also a partner at the Chicago-based law firm...

Montana Acts On Retirement Deficits.
August 1, 2005... Montana Governor Brian Schweitzer announced last week, that his administration would create a proposal to pull the Montana Public Employees' Retirement System and the Montana Teachers' Retirement System out of its serious financial problems,...

GSC Hires Two to Head New Hedge Fund.
August 1, 2005... GSC Partners-the New York-based private investment firm specializing in distressed debt investing and structured finance-has hired Drew Doscher and Jeffrey Horan as managing directors to lead its newly created hedge fund. The duo joins the...

Incoming SEC Chair Vows Vigorous Enforcement'.
August 1, 2005... U.S. Representative Christopher Cox, nominated to succeed William Donaldson as chairman of the Securities and Exchange Commission, said he would pursue "vigorous enforcement" of securities laws. Speaking before the Senate Banking Committee...

TIAA-CREF Devises New Way To Pay for Research.
August 1, 2005... Large fund management complexes may soon start raising their fees in the name of research, and sector benchmark TIAA-CREF-known for its low fees-is taking a leading role. Despite the public relations ramifications, TIAA-CREF disclosed late...

Wall Street Niche Continues to Grow in Importance.
August 1, 2005... Goldman Sachs is hunting for a chief to head the firm's transition management division in the U.S after former head Kristi Mitchem left the firm a few weeks ago to head up U.S. transition services for Barclays Global Investors. BGI's poaching...

Moral Investing for Institutional Investors: Not Just Some Plain SRI.
August 1, 2005... Investing in the ways of the Roman Catholic Church is no longer limited to Catholic affiliations or organizations. As many institutional investors now seek to not only increase returns also maintain a higher moral code. The Ave Maria...

Odds & Ends.
August 1, 2005... *The State Teachers Retirement Board of Ohio has elected Robert Brown and Conni Ramser, as chair and vice chair, respectively, for a one-year term, which begins on Sept. 1. *Trustees of the $44 billion Virginia State Retirement System are...

N.H. Trustee Under Fire for Conflict-of-Interest.
August 8, 2005... New Hampshire Retirement Systems Board Chair Edward Theobald may have had close ties to a potential investor-an act that would have violated the state's ethics code. A May 24 letter to the New Hampshire board from one of the fund's money...

Nevada PERS to Conduct Value Search.
August 8, 2005... The $18 billion Nevada Public Employees' Retirement System is gearing up to search for a value manager to oversee approximately $400 million. Laura Wallace, plan CIO, said that the new all-cap allocation, which will have a large-cap tilt,...

Sacramento Preps for Overlay, REIT Searches.
August 8, 2005... The $4.8 billion Sacramento County Employees' Retirement System is gearing up to initiate searches for an overlay manager to oversee approximately $100 million and a REIT manager to handle $50 million, said plan CIO Jeff States. "The board...

NYSTRS Eyes Cap Guardian on $1.2B Account: Are the Firm's Issues Symptomatic of a Bigger Problem?
August 8, 2005... During its July 28 board meeting, the $84 billion New York State Teachers' Retirement System placed Capital Guardian Trust Company on watch for performance issues on a $1.2 billion international equity account. While a manager being placed...

Calif. Fund To Add Neutral' Manager.
August 8, 2005... The $1.1 billion Marin County Employees' Retirement Association is in the early stages of prepping a search for a market neutral equity manager, said Maggie Johnston, acting retirement administrator of the fund. "We haven't started the...

Mass. Fund Searches For Real Estate.
August 8, 2005... The $67 million Watertown Contributory Retirement System is on the hunt for a value-added real estate manager. Calls to retirement board director Barbara Sheehan were referred to the fund's consultant, Wainwright Investment Counsel. An...

San Diego City Chief Gets Set to Retire.
August 8, 2005... Larry Grissom, retirement administrator for the $3 billion San Diego City Employees' Retirement System will retire from his post after 18 years with the system, confirmed Rebecca Wilson, plan spokeswoman. Grissom's notice comes on the...

VRS Names New Board Member.
August 8, 2005... The $44 billion Virginia Retirement System has added a new trustee to its board. Late last month, Virginia State Governor Mark Warner announced the appointment of Alfred Broaddus. Broaddus replaces Alfonso Samper who resigned from his post...

Texas Cops Pick Consultant Finalists.
August 8, 2005... The $360 million Austin Police Retirement System has selected five finalists to replace its former consultant, Monroe Vos Consulting Group, said Sampson Jordan, pension administrator. During the plan's Aug. 3 investment committee meeting,...

Indiana Cop Fund Adds Large-Cap Manager.
August 8, 2005... The $25 million retirement fund of the Allen County Sheriff's Department has reportedly hired Chilton Capital Management to oversee a $4 million large-cap growth account. The move strips a portion of the department's fixed-income assets managed...

Pensacola Fire Plan Eyes Value Manager.
August 8, 2005... The $76 million Pensacola Firemen's Relief and Pension Fund is in the midst of a search for value manager to oversee $4.5 million, a move that could potentially replace incumbent DePrince Race & Zollo (DRZ). Cheryl Jackson, the plan's...

WPG Appoints Fixed-Income PM.
August 8, 2005... Weiss, Peck & Greer, a unit of Robeco Investment Management, has appointed David Seto as its new senior VP and portfolio manager in the fixed income group, said Erin Heggerick, a Robeco spokeswoman. Seto joined the firm last month. Seto,...

Private Equity is Big Performer for Market Players: Returns are in the Double-Digits, Fund-Raising has Hit a Five-Year High.
August 8, 2005... Private equity was the highest performing asset class for the California State Teachers' Retirement System and came in second only to real estate for both the California Public Employees' Retirement System for the fiscal year ending June 30....

Franklin Templeton Launches New Global Consultant Relations Group.
August 8, 2005... Franklin Templeton Institutional, a unit of Franklin Resources, has created a new global consultant relations group. "The reason we have decided to create a consultant group is because of a desire to better serve consultants. Our consultant...

Hedge Fund Market Sees Second Quarter Slip.
August 8, 2005... The second quarter had the $1 trillion hedge fund industry experiencing its lowest net flows since the fourth quarter of 2001, according to the "Tremont Asset Flows Report" compiled by Tremont Capital Management. The quarterly report...

Odds & Ends.
August 8, 2005... *Chicago-based Nuveen Investments announced that it is acquiring growth manager Santa Barbara Asset Management. Nuveen will pay $50 million of initial consideration in cash for Santa Barbara, which has $2.8 billion in assets under management....

CORRECTION.
August 8, 2005... In the August 1, 2005 issue of IMW, the article, "PE Firm Named in Ill. Teachers' Probe," incorrectly names HealthPoint Capital as a firm named in the federal investigation. Also, Joseph Cari, was incorrectly identified as a managing partner....

Plot Thickens in Illinois Teachers R.S. Probe.
August 15, 2005... Federal investigators recently added investment firm Hopewell Ventures to the list in its probe of the Illinois Teachers' Retirement System, published reports indicated last week. The company was founded by Illinois State Governor Rod...

LA Utility Plan Studies Hedge Funds.
August 15, 2005... The roughly $6 billion Los Angeles Department of Water and Power Employees' Retirement Plan is in the midst of an intensive course on the hedge fund asset class, said Sangeeta Bhatia, plan administrator. The move to hedge funds comes as a...

CalPERS Moves on International Equity RFP.
August 15, 2005... The California Public Employees' Retirement System (CalPERS) will seek approval from its governing board today to issue RFPs for a "spring-fed pool" of active international developed markets equities managers and for active emerging markets...

Austin ERS Preps Small-Cap Value Search: Sterling Capital May Be Out.
August 15, 2005... The $1.1 billion City of Austin Employees' Retirement System may be poised to initiate an RFP for a small-cap value manager, a move that could replace the Texas plan's incumbent, Sterling Capital Management. Full details of the potential...

Oakland Guns & Hoses Eye Seneca Capital.
August 15, 2005... The $615 million Oakland Police & Fire Retirement System has placed Seneca Capital Management on watch in response to the impending departure of the firm's CEO Gail Seneca, said Teir Jenkins, accountant for the California funds. The firm, which...

LACERS to Hire Capital Prospects.
August 15, 2005... The investment committee of the roughly $8.4 billion Los Angeles City Employees' Retirement System has recommended Capital Prospects as its new fund-of-funds emerging manager said Josie Enriquez, investment officer. Enriquez explained that...

NYSTRS Appoints New Board Member.
August 15, 2005... The $85 billion New York State Teachers' Retirement System has appointed Daniel Hogarty, Jr. as the newest trustee on the 10-member board. Hogarty, who is the director of First Niagara Financial Group, replaces Richard Lindstrom, who had...

Board Remains Mum on Trustees Status.
August 15, 2005... The die has been cast regarding the fate of Edward Theobald, board chair of the $5 billion New Hampshire Retirement Systems and his alleged violation of the state's ethics code. Earlier this month, Theobald was accused of having close ties...

Watson Wyatt: Large Firms Not Abandoning DB Plans.
August 15, 2005... Despite a spike in pension terminations last year, the nation's largest employers appear to be sticking with their DB plans, according to a survey by Watson Wyatt Worldwide. In an analysis of Fortune 1000 companies, Watson Wyatt found that...

Fidelity Launches Asset Management Unit.
August 15, 2005... After announcing its initial plans for an institutional investment arm to manage assets for corporate and public pension plans, Fidelity Investments has finally opened the doors of its spin off unit, Pyramis Global Advisors, said Vincent...

PERAC Creates Corporate Governance Oversight Panel.
August 15, 2005... The Massachusetts Public Employee Retirement Administration Commission (PERAC) is taking steps to head off corporate scandals and issues of trustee malfeasance and conflicts of interest at its retirement systems. The Commission, which has...

Shao: Good Opportunities Still Exist in High Yield.
August 15, 2005... Research, patience and good credit stories are key elements to finding success in the high yield fixed-income markets, contends Ming Shao, senior portfolio manager of fixed-income at Dupont Capital Management (DCM). Shao said the...

Odds & Ends.
August 15, 2005... *Marsh & McLennan Co. (MMC) has found itself the subject of an informal investigation by the Securities and Exchange Commission (SEC) regarding business referrals between its Mercer's consulting arm and Putnam Investments asset management unit....

Hawaii Selects Large-Cap Finalists.
August 15, 2005... The $9.1 billion Employees' Retirement System of Hawaii has selected four finalists in its search to replace large-cap value manager, Delaware Investments. Kimo Blaisdel, plan CIO declined to name the candidates, but said that the plan's...

Hawaii Surpasses Actuarial Targets for Second Year.
August 15, 2005... The Employees' Retirement System of Hawaii has bested its 8% actuarial target for the second year in a row returning 10.2%. The plan also reportedly posted a 1.8% return for the quarter ending June 30. The increases are said to be the plan's...

Virginia Gains New Head of Investments.
August 22, 2005... The $44 billion Virginia Retirement System has appointed a new CIO. The Board of Trustees announced its selection of Charles Grant to step into the role. Grant had been acting as CIO for the fund following the March departure of his...

Los Angeles Water & Power Eyes Fidelity: Wells Notice Grabs Client's Attention.
August 22, 2005... The $6 billion Los Angeles Water and Power Employees' Retirement Plan has placed Fidelity Investments on watch on its roughly $280 million international equity account. Sangeeta Bhatia, plan administrator, said that Fidelity's...

Kentucky Retirement Issues Consultant RFI.
August 22, 2005... The $14.2 billion Kentucky Retirement Systems (KRS) has issued a Request For Information (RFI) for a private equity consultant that could potentially unseat incumbent Strategic Investment Solutions (SIS). Full details of the action could...

Illinois Teachers' Places Three on Watch: Hires Two for International Equity.
August 22, 2005... The $34 billion Teachers' Retirement System of the State of Illinois has placed three of its managers on watch for performance issues and hired two to oversee approximately $900 million in international equity. The plan has watch-listed...

Holyoke Considers Real Estate.
August 22, 2005... The $160 million Holyoke Retirement Board could, in the near future, intitate a search for a real estate manager, said Daniel Owens, executive director at the fund. The plan, which recently launched a $10 million small-cap core search to...

Brookline Launches $30M Index Search.
August 22, 2005... The $175 million Brookline Contributory Retirement System is looking to hire a domestic equity manager to oversee approximately $30 million. Frank Zecha, director of retirement, confirmed that the fund was searching for a manager, but...

Fall River Plots Private Equity.
August 22, 2005... The $216 million Fall River Retirement System has issued an RFP for a private equity fund-of-funds manager to handle approximately $10 million. Details of the search could not be ascertained, as Christine Tetrealt, executive director of...

MHFA to Boost Private Equity.
August 22, 2005... The $54 million Massachusetts Housing Finance Agency Retirement System (MHFA) may soon be adding a private equity fund-of-funds manager to its roster, said Plan Administrator John Doherty. This would not be the plan's first foray into the...

San Jose 911 to Search For Deputy Director.
August 22, 2005... The $1.6 billion San Jose Police and Fire Retirement Fund will hunt for an executive search firm to assist in the recruitment of a deputy director. Details of the process could not be determined, as calls to Edward Overton, the plan's...

City of Hartford Seeks Assistant Director.
August 22, 2005... The $1 billion City of Hartford Retirement System has initiated a search for a new assistant director of investments. City Treasurer Kathleen Palm, said that the search was launched to fill the position vacated by Dominick Cristofaro, the...

CalPERS Exempts RE From Int'l Guidelines.
August 22, 2005... The California Public Employees' Retirement System's (CalPERS) real estate team will be exempt from the strict guidelines that limit which countries its international equities group can invest in, according to a policy adopted by the pension...

ICERS Preps Search for Administrator.
August 22, 2005... The roughly $300 million Imperial County Employees' Retirement System (ICERS) may soon be gearing up to search for a plan administrator; a new position. During its July 20 board meeting, trustees discussed the possibility of creating a...

CFA Announces Global Guidelines for Separately Managed Accounts.
August 22, 2005... The CFA Centre for Financial Market Integrity has issued new guidelines-Global Investment Performance Standards (GIPS)-intended to assist investment managers in calculating and presenting investment performance that guarantees fair...

DB Plans: Public Pension Underfunding Causing Concerns.
August 22, 2005... While United Airlines, US Airways and other faltering airline pensions are grabbing front-page headlines, there is another area of funding shortfalls that's received little national attention-public pensions. Most public pensions have...

E&Y: More Money Managers Assessing Risk.
August 22, 2005... Asset managers are increasingly adding risk management tools to the way they do business, according to the findings of a recently completed Ernst & Young survey. Most significantly, 89% of the asset management firms responding to the...

Rentenbach: Legal Challenges Ahead on the 1940 Act.
August 22, 2005... The move for disclosure and increased scrutiny in the hedge fund markets has prompted the Securities and Exchange Commission to enforce the Investment Advisers Act of 1940 within the previously unregulated industry. Legal eagle Paul...

Odds & Ends.
August 22, 2005... *Mike Mulvihill has joined AXA Rosenberg as a member of the U.S. portfolio management team. Prior to joining the firm, he was a VP with MSCI Barra and a portfolio manager with Rochdale Investment Management. Mulvihill will report to Syed Zamil,...