Investment Management Weekly articles from July 2005

Investment Management Weekly archives from July 2005

More Criticism for Ohio Fund?
July 4, 2005... Ohio residents may have a new bone to pick with the Ohio Bureau of Workers Compensation (BWC). The fund has reportedly hired Ennis Knupp + Associates to assist in an overall review of the its assets (See story on this page). The firm...

Increased Scrutiny at Ohio Workers' Comp.
July 4, 2005... Ohio Governor Bob Taft, in an effort to control the seemingly never-ending debacle underway at the $15.8 billion Ohio Bureau of Workers' Compensation (BWC), has recently announced the formation of a Management Review Team to oversee the...

Colorado Fire & Police Studies Assets: Launches Consultant Search.
July 4, 2005... The $2.6 billion Fire and Police Pension Association of Colorado is in the throes of a soup to nuts asset allocation/liability study that could possibly pave the way for changes to the plan's current allocation. The plan has also initiated a...

Texas ERS To Add More Small-Cap.
July 4, 2005... The $21 billion Texas Employees' Retirement System will be adding an additional small-cap equity manager to its lineup by the beginning of next year, said spokeswoman Mary-Jane Wardlow. While a specific mandate size is yet to be determined,...

Mass. Fund Launches Small-Cap Search.
July 4, 2005... The $27 million Amesbury Retirement System is gearing up to launch a search for a domestic equity manager. According to a document obtained by IMW, the Massachusetts fund will invest $1.5 million in a small-cap growth account. Further...

Alaska Fund Creates Advisor Pool.
July 4, 2005... The $28 billion Alaska Permanent Fund Corporation, following in the steps of other large public pension funds, has created a consultant pool as a source for new and differing ideas, said Rick Shafer, plan CIO. "We think we have the best...

Fresno Restructures Large-Cap Portfolio.
July 4, 2005... The $1.8 billion City of Fresno Retirement System has reshuffled its large-cap portfolio and eliminated its growth and value strategies, opting instead for a large-cap core approach. Kathleen Riley, the California plan's assistant...

OCERS Selects Small-Cap Manager.
July 4, 2005... The $5.5 billion Orange County Employees' Retirement System has selected a new small-cap growth manager to oversee an account of an unspecified size, but will remain mum on the identity of the new manager until contracts are ratified during ...

S.C. Employees Claim Breech of Contract.
July 4, 2005... Members of the Teacher and Employee Retention Incentive program (TERI)-a deferred retirement plan of the $29 billion South Carolina Retirement System-have filed suit against the plan over changes that have recently been made by state...

Indiana Teachers Snags SSgA.
July 4, 2005... The $6.6 billion Indiana State Teachers' Retirement Fund has hired State Street Global Advisors (SSgA) to manage approximately $800 million in an international enhanced index account. The search-which was part of three RFIs initiated in...

Cappiello: Hedge Fund Opportunities Are Shrinking.
July 4, 2005... The very expansion of the hedge fund market is reducing its investing opportunities, and slowly forcing the most cunning hedge fund managers to look to the long term. "The more hedge funds there are, the fewer investing opportunities there...

Survey: Institutional Investors Set to Increase Private Equity Investments.
July 4, 2005... More than two-thirds of all institutional investors plan to maintain, or increase their allocations to alternative investments. One-third plan to increase their allocation to private equity and real estate funds, while 37% plan to increase...

Regs Drive Audit Fees Sky-High For Some.
July 4, 2005... Demand for Accountants at Large Shops Leaves Rest Scrambling Audit fees have skyrocketed for some small investment managers over the past few months, as the slew of new regulations and pending litigation puts the squeeze on small shops'...

Odds & Ends.
July 4, 2005... *Putnam Investments has announced the retirement of John Boneparth, head of global institutional management. He is to retire in September. Sandra Whiston and Jeffrey Peters, both institutional heads of Putnam Alliance Business, will now report...

Ohio BWC Begins Cleaning House.
July 11, 2005... Following on the heels of the coin and hedge fund dust up that started last month and sparked a soup-to-nuts review of its investments, (See IMW, 7/4/05), the board of Ohio Bureau of Workers' Compensation (BWC) board has reportedly terminated...

CalSTRS to Adopt Alternatives Policy.
July 11, 2005... Changes proposed to the $127 billion California State Teachers' Retirement System's alternative investments policy last month could be adopted by the board as early as next week, according to a memo released by the plan's pension staff in...

Ohio BWC Money Manager Speaks Out.
July 11, 2005... In large scandals such as the one involving the Ohio Bureau of Workers' Compensation (BWC), so often you only hear about the affects it may have on the investment management firm that is directly involved. Susan Stewart, president of...

Putnam Whistleblower Wants Cut of the Action: Sues Mass. A.G. for $15 Million, Seeking Scandal Bounty'.
July 11, 2005... The whistleblower who helped take down Putnam Investments for alleged trading abuses is suing the Massachusetts Attorney General in an attempt to secure a bounty for his role in exposing the scandal. Peter Scannell, a 48-year old Weymouth,...

University of Hawaii to Select New Pres.
July 11, 2005... The University of Hawaii Endowment Fund's Board of Regents will begin its search for a new president, but will first seek out the services of an executive search firm to help with the process, said Carolyn Tanaka, associate VP. The search...

Reaction Slow to Legg Mason/Citigroup Swap.
July 11, 2005... Last month, Citigroup announced its plans to swap its $460 billion asset management division for Legg Mason, Inc.'s broker-dealer business. The transaction would mean that Citigroup would be exiting the business of creating funds for its...

Oklahoma Hires New Deputy Director.
July 11, 2005... The Oklahoma Police Pension and Retirement System has appointed Steven Snyder as its first deputy executive director, said Robert Wallace the plan's executive director. Snyder, who began his duties on July 1, was most recently legal...

Mississippi PERS to Search for Director.
July 11, 2005... The $17 billion Public Employees' Retirement System of Mississippi has begun its search for a new executive director after Frank Ready-the plan's director for approximately nine years-retired on June 30. Denise Owens-Mounger, the plan's...

Ivy League Assigns New Investment Head.
July 11, 2005... The $2.5 billion Dartmouth College endowment fund has appointed David Russ as CIO, said Adam Keller, executive VP for finance and administration. Russ is the current treasurer of the Regents and VP of investments at the $5.3 billion...

CalSTRS Gets Set to Retain Consultant.
July 11, 2005... McKinsey & Co. will hold onto its contract as the California State Teachers Retirement System's alternative investments consultant for another two years. During the plan's investment committee hearing on July 14, the board is expected to...

Northern Trust Hires New Growth Leader.
July 11, 2005... John Cole-most recently the managing director and chief operating officer at the Chicago-based Lincoln Equity Management-has been named the new head of active growth equity investments at Northern Trust, said Kurt Ross, spokesman for the firm....

Report: International Equity on Rise at Institutional Plans.
July 11, 2005... International equity investments by U.S. institutional plan sponsors were on the rise last year as plan sponsors hunted for ways to increase returns, according to a report by Greenwich Associates. The report indicated that projected...

E&Y Establishes National Tax Practice.
July 11, 2005... Ernst & Young, in an effort to strengthen its tax practice in this ever-evolving and multifaceted marketplace, has created a new platform that promises to service the tax needs of hedge fund, private equity and mutual funds on a national scale....

Odds & Ends.
July 11, 2005... * John Murphy, former head of the New York City Employees' Retirement System is making plans to sue the city for "emotional distress." Murphy, who had been with the retirement system for 14 years prior to being "forced out" of his position in...

Muni Plan to Take Action Against Morgan Stanley.
July 18, 2005... The $700 million American Federation of State, County and Municipal Employees' Pension Plan has requested a meeting with directors of Morgan Stanley regarding concerns of excessive severance packages doled out to top executives. The...

OPERS Looks To Add More Int'l Managers.
July 18, 2005... The $64.5 billion Ohio Public Employees' Retirement System (OPERS) has unveiled another search for a non-U.S. equity manager, as it continues its efforts to rebalance its international equity portfolio, said Rich Baker, a spokesman for the...

San Diego City Trustee Resigns From Board: Says Against Former Members Unjust.
July 18, 2005... Much like the plot of a scandalous novel, the woes at the San Diego City Employees' Retirement System seem to get deeper and deeper with each turn of the page. Faced with the resignation of a mayor, and numerous federal probes, the roughly...

SDCERS Loses Assistant Administrator.
July 18, 2005... Paul Barnett, assistant administrator for the San Diego City Employees' Retirement System passed away on July 11. He was 54. Barnett, who joined the pension fund in September 2001, also served for seven years as an appointed member of the...

Chester County to Add Index Fund.
July 18, 2005... The $194 million Chester County Retirement Board is hunting for a large-cap growth index fund manager, said Mark Rupsis, director of administration for the Mass-achusetts plan. The board will allocate $12 million to the new account,...

Holyoke Eyes Small-Cap, Emerging Markets.
July 18, 2005... The $160 million Holyoke Retirement Board has launched a search to replace Dreyfus Investment Management from a small-cap core equity account and will also initiate a search for an emerging markets manager in the near future, said Daniel Owens,...

Dual Searches For Falmouth Retirement.
July 18, 2005... The $65 million Falmouth Retirement System has launched searches for managers to oversee accounts in U.S. equity and international fixed-income, according to a document obtained by IMW. Up for grabs is a mid-cap core equity mandate, slated...

Iowa Delays Consultant Search.
July 18, 2005... The Securities and Exchange Commission's ongoing investigation of the investment consulting industry has prompted at least one plan sponsor to halt a recent search for an investment advisor. According to the Iowa Public Employees'...

Miami Beach 911 Launches Search.
July 18, 2005... The $82 million City of North Miami Beach Police & Firefighters' Retirement Plan has terminated Rorer Asset Management from a roughly $13 million domestic equity account and has launched an invitation-only search to replace the firm, said...

Ohio SERS on Prowl for Investment Officer.
July 18, 2005... The $9 billion School Employees' Retirement System of Ohio (SERS) has launched a search for a senior investment officer to oversee its real estate and private equity portfolio. The search replaces Malcolm Goepfert, who will be leaving his post...

SWIB Searches For Private Equity PM.
July 18, 2005... The $68.3 billion State of Wisconsin Investment Board (SWIB) launched a search for an investment portfolio manager to oversee its private equity within the Private Markets Group, said Vicky Hearing, a spokeswoman for the fund. The $335...

Colorado PERA Hires Int'l Equity Manager.
July 18, 2005... The $32 billion Colorado Public Employees' Retirement Association has hired the Baillie Gifford to oversee a roughly $200 million emerging markets portfolio, said Katie Kaufmanis, plan spokeswoman. Funding for the new portfolio will be derived...

Texas Teachers Hunts for Director.
July 18, 2005... The $88 billion Teacher's Retirement System of Texas is in the midst of a search for a new director for its international equity portfolio, said Juliana Helton, plan spokeswoman. "TRS began the search in April 2003," said Helton, adding...

OCERS Hires Three Small-Cap Managers.
July 18, 2005... The investment committee of the $5 billion Orange County Employees' Retirement System, will recommend the hire of Washington Capital Management to oversee a $50 million small-cap growth account, according to the agenda for the plan's board...

Private Equity Capital Set to Rise in 2005.
July 18, 2005... Predictions that private equity funds will raise twice as much capital this year than they did in 2004 will likely come true, according to a report released this month by Private Equity Intelligence, a London-based research group. This...

Hemmelgarn: It's PrimeTime for Small-Cap Growth.
July 18, 2005... For Edward Hemmelgarn, founder and CIO of the Cleveland-based boutique money manager Shaker Investments, the time is ripe for the picking when it comes to small-cap growth investments. The firm, which specializes in a small/mid-cap growth...

Odds & Ends.
July 18, 2005... *Northern Trust has appointed Alex Ryder as its new portfolio manager for the international equity index team. He reports directly to Steve Wetter, team leader for the international equity index team. Ryder, who is responsible for quantitative...

Greenspan Argues for Taxpayer Consideration.
July 25, 2005... Alan Greenspan, chairman of the Federal Reserve Board, has requested that lawmakers carefully consider taxpayers when it comes to pension fund bailouts. During a meeting of the Senate Banking, Housing and Urban Affairs Committee last week,...

City Attempts Takeover of SDCERS.
July 25, 2005... The San Diego City Employees' Retirement System may soon be under the receivership of the city, if it is deemed feasible and viable. Last week the City Council gave authorization to begin the process of taking over the $3 billion pension...

Pension Funding Rule Overhaul Likely: Underfunding Adds Urgency to Reform Efforts.
July 25, 2005... In the years before United Airlines shuttered its retirement plans and transferred a record $6.6 billion in claims to the federal pension agency, the company paid very little into its own plan or into the system that insures benefits. ...

Arkansas Teachers Contemplate Real Estate.
July 25, 2005... The $8.7 billion Arkansas Teachers' Retirement System may look to invest in real estate ventures in the near future, said David Malone, executive director. Malone said that the move will be initiated as Arkansas legislature requires that...

Norfolk Launches Real Estate Search.
July 25, 2005... The $440 million Norfolk County Retirement Board is searching for a real estate manager, according to an RFP issued by the fund. Furthers details of the search could not be obtained by press time. John Keenan, executive director at the fund...

Turnpike Employees' Seek Global A/A Mgr.
July 25, 2005... The $185 million Massachusetts Turnpike Authority Employees' Retirement System is searching for a manager to oversee a $30 million global asset allocation account. Further details regarding the search were not available, as Tom Arcadipane,...

PSERS Hires for Private Equity.
July 25, 2005... The board of the $28.2 billion Pennsylvania State Employees' Retirement System (SERS) has dedicated $205 million into six private equity managers, said Bob Gentzel, plan spokesman. The PSERS board approved investing up to $50 million in...

DuPont Boosts Marketing Efforts.
July 25, 2005... DuPont Capital Management (DCM) has appointed Donald Pepin as managing director of marketing, said Valerie Sill, president and CEO of the Wilmington, Del.-based firm. Pepin joins from Gartmore Global Partners where he was responsible for...

Phoenix ERS Hires New Consultant.
July 25, 2005... The $1.3 billion City of Phoenix Employees' Retirement System (COPERS) has hired R.V. Kuhns & Associates as its new investment consultant, according to the minutes of a recent board meeting. The search, which was initiated at the beginning...

Benhamou: Bigger Doesn't Always Mean Better.
July 25, 2005... Investing in the foreign markets can seem like a risky quest for some institutional investors who find it hard to track the day-to-day happenings from U.S. soil. However, for those looking for the best of both worlds -international expertise...

Odds & Ends.
July 25, 2005... *D.E. Shaw Group has hired Anthony Foley as senior VP and head of quantitative research at D.E Shaw Investment Management. Prior to his hire, Foley served as a managing director and head of quantitative research at State Street Global Advisors....