Investment Management Weekly articles from March 2004

Investment Management Weekly archives from March 2004

Vellon is Placed On Leave.
March 1, 2004... Duamel Vellon, pension manager at the Los Angeles Water & Power Retirement Plan was reportedly placed on administrative leave the plan's board. According to a published report, the board placed Vellon on leave after receiving complaints of...

AMR Corp. Plots International Equity Search.
March 1, 2004... The $12 billion defined benefit plan of AMR Corp.-the parent company of American Airlines and American Eagle-will launch a search for an international value equity manager in the coming months. William Quinn, president said no managers were...

Nevada Plots Large-Cap Growth Search.
March 1, 2004... The $16 billion Nevada Public Employees' Retirement System has launched a search for a manager to oversee a roughly $500 million large-cap growth account. Laura Wallace, the plan's investment officer, said that the new search was simply to...

N.M. Plan Launches Emerging Markets Search.
March 1, 2004... The $6.2 billion New Mexico Educational Retirement Board has launched a search for a manager to oversee a $140 million global emerging markets equity mandate. Frank Foy, the plan's CIO said that contracts for AllianceBernstein...

Texas Plan Places Alliance on Watch.
March 1, 2004... The board of the $1.1 billion City of Austin Employees' Retirement System voted on Feb. 20 to place AllianceBernstein Institutional Investment Management on watch on its $100 million large-cap growth account. "The [board] recently voted to...

Stanislaus County Eyes MFS.
March 1, 2004... The board of the $950 million Stanislaus County Employees' Retirement System has cast a critical eye on large-cap manager MFS Investment Management for underperformance on its $154 million growth account. Retirement Administrator, Robert...

San Fran Ponders Manager-of-Managers.
March 1, 2004... The public investment committee of the $12 billion San Francisco City & County Retirement System, has recommended the implementation of a manager-of-managers program with special focus on emerging investment management firms. David...

Florida Plan Launches Search for Large-Cap.
March 1, 2004... The $267 million City of Fort Lauderdale Employees' Retirement System has launched a search for a large-cap value manager to oversee $37 million. Details of the search could not be determined, as calls to David Desmond, pension...

Mass. Fund Launches Dual Searches.
March 1, 2004... The $80 million Woburn Retirement System has initiated searches for large-cap growth and value managers to oversee approximately $7 million each-a move that could possibly replace Freedom Capital Management, the plan's incumbent manager on both...

Commonwealth of Va. Seeks Consultant.
March 1, 2004... The Commonwealth of Virginia's treasury department has initiated a search for an investment consultant to oversee its $5 billion General Account. Gregory Schnitzler, director of cash management and investments, said that the search was to...

New York State Teachers Expels Alliance.
March 1, 2004... The $72 billion New York State Teachers Retirement System has terminated Alliance Capital Management from a $479 million passive international equity account. David Daly, the plan's spokesman said that the manager's termination was the...

Mass. PRIM Selects New Leader.
March 1, 2004... The Massachusetts Pension Reserves Investment Management Board has appointed Michael Travaglini-former state first deputy treasurer-as its new executive director, said Karen Sharma, spokeswoman for the fund. The appointment replaces James...

CIBC to Invest $37m in Corporate Governance.
March 1, 2004... Canadian Imperial Bank of Commerce announced last Monday that it would pour $37 million to reform and educate employees on corporate governance. The funding is,in part, forced by a December settlement with federal regulators stemming from its...

T. Rowe Price Hires New CFO.
March 1, 2004... T. Rowe Price has hired Kenneth Moreland to be its CFO. Moreland succeeds Cristina Wasiak, 50, who stepped down as CFO at the end of December but has remained with the company as a VP. Moreland is to join the Baltimore investment company on...

Morgan Stanley Names Managing Directors.
March 1, 2004... In a pair of moves, Morgan Stanley named Eric P. Johnson as managing director and head of institutional business, and tapped Patrick Bannigan as managing director and head of global product development. Bannigan will report to William...

Greenspan Downplays Importance of Hedge Fund Registration.
March 1, 2004... Registering with the Securities and Exchange Commission should not be a requirement of hedge funds, at least not in the mind of Federal Reserve Chairman Alan Greenspan. Calling hedge funds helpful to the "internal flexibility of our...

"America's Value Investor" Seeks Court Dismissal.
March 1, 2004... Heartland Advisors, its founder William Nasgovitz, other officers, portfolio managers and related individuals, are urging a federal court in Milwaukee to dismiss the securities fraud and other charges the Securities and Exchange Commission...

Alternative Investments to Grow Despite Possible Disciplinary Actions.
March 1, 2004... The increased scrutiny seen in the hedge fund and mutual fund markets has yet to have a lasting effect, as money managers predict a profound increase in the asset classes for 2004, according to Mercer Investment Consulting's annual "U.S. and...

Zimpleman; The Second Place Winner.
March 1, 2004... It's not every day one encounters a company that is content to be in second place. But Larry Zimpleman, president of Principal Retirement & Investor Services and executive VP of says that is exactly what the firm strives to be While the...

Odds & Ends.
March 1, 2004... *Dennis Sugino and Kathy Barchick-Wilshire Associates veterans-resigned from the firm on Feb. 20. The departure of the two senior consultants followed on the heels of the resignation of Stephen Nesbitt who left the firm on Feb. 5 after a...

Ex-NYSE Directors Receive Subpoenas.
March 8, 2004... Approximately 65 former members of the New York Stock Exchange board of directors are said to have received subpoenas from the Securities and Exchange Commission requesting documents detailing discussions over the salary of former NYCE chairman...

Colorado Bravest and Finest Keep Tabs on PIMCO.
March 8, 2004... The board of the $2.1 million Fire and Police Pension Association of Colorado is keeping a close eye on PIMCO. The firm is currently embroiled in legal proceedings instigated by the office of the New Jersey Attorney General. The lawsuit accuses...

Philly Fund Watches Mid-Cap Manager.
March 8, 2004... The $5.3 billion Philadelphia Board of Pensions & Retirement could potentially be on the market for a new mid-cap growth manager, CIO Tony Johnson said. Sparked by skepticism of the performance of Navellier Securities, the board has...

Indiana Teachers to Launch Asset Liability Study.
March 8, 2004... The $6 billion Indiana State Teachers Retirement Fund is gearing up to launch an asset liability study next month-its first in three years. Robert Newland, the plan's CIO, could not speculate on the potential changes that may result at...

Big EasyConsiders Junk, Int'l Bonds.
March 8, 2004... The board of the $380 million New Orleans Employees' Retirement System is contemplating the addition of high yield fixed-income and international fixed-income to its investment portfolio. Jerry Davis, the plan's CIO said that the potential...

Small Plan Watches Manager Giant.
March 8, 2004... In an unsound economic environment, even the littlest players are taking action. The $4 million Cumberland Police Pension Board has placed FleetBoston Financial Corp. on watch after learning that the firm was slapped with a lawsuit from...

Houston's Bravest Ousts Schroders.
March 8, 2004... The $1.7 billion Houston Firefighters' Relief and Retirement Fund has terminated Schroders Investment Management from its $150 million international EAFE account. Christopher Gonzales, plan CIO, said that the board decided to terminate the...

IP Picks Int'l Equity Finalists.
March 8, 2004... The $6.4 billion International Paper is in the finalist stage of a search for an international equity manager. Robert Hunkeler, VP of investments of the Purchase, N.Y.-based paper company, declined to name the candidates, but said that the...

Capital Advisors Hires New VP.
March 8, 2004... Capital Advisors Group has appointed Christopher Morell as its new senior VP, replacing Kelly Keeney, who left the firm for personal reasons. Morell, most recently VP of relationship sales at GE Capital, is responsible for leading business...

Fido Taps Three New Portfolio Managers.
March 8, 2004... Fidelity Investments has reshuffled its portfolio management team for three of its funds. Heather Lawerence has succeeded Peter Hirsch as manager of the $476 million Fidelity Select Banking Portfolio. Previously, Lawerence ran the $40...

Voss Appointed Chair of CDC IXIS Exec Board.
March 8, 2004... CDC IXIS Asset Management has named Peter Voss chairman of its executive board. Voss will replace Daniel Roy and will also continue to oversee the group's North America operations. Voss has co-managed CDC IXIS Asset Management with Roy...

SSgA Creates New Hedge Fund Group.
March 8, 2004... State Street Global Advisors (SSgA) is entering the hedge fund management business with the formation of a new unit specifically designed for the investment vehicle, said firm spokeswoman Arlene Johnson. The SSgA Hedge Fund Strategies...

CalSTRS: Private Equity Up in 2003.
March 8, 2004... The private equity portfolio of the California State Teachers' Retirement System (CalSTRS) was up 18.4% in 2003, however, the plan is slowly adjusting its investment strategy, moving out of international private equity, distressed debt and...

NVCA Snubs Valuation Guidelines.
March 8, 2004... The National Venture Capital Association refused to throw its weight behind a set of guidelines proposed in December that tried to set industry-wide standards for valuing portfolio companies and calculating fund returns. The organization,...

The New Stampede To Invest VC Funds.
March 8, 2004... As 10-year venture capital funds launched in 1999 near their midway points, there has been a rush to invest unused funds before the magic five-year mark (the second five years for most VC funds is typically used to harvest results of...

BofA Could Pay $250M.
March 15, 2004... The Securities and Exchange Commission has slapped Bank of America with a $250 million fine, citing failure to comply with records request during the agency's recent stock-trading investigation. The SEC said BofA failed to produce requested...

Trouble for T. Rowe in San Bernardino.
March 15, 2004... The investment committee of the $3.2 billion San Bernardino County Employees' Retirement System has recommended terminating T. Rowe Price as manager on its $360 million international equity account. Don Pierce, senior investment officer of...

Alaska Permanent Fund Considers Fixed-Income.
March 15, 2004... The board of the $25 billion Alaska Permanent Fund Corporation will consider a recommendation to initiate a fixed-income manager search, said Rick Shafer, CIO. "The board is revisiting an issue that came up last year," said Shafer. He...

Defined Benefit Plans in Decent Shape-For Now.
March 15, 2004... One fact has been lost amid the hand wringing over the Pension Benefit Guaranty Corporation's $11.2 billion deficit: Defined benefit pension plans actually seem to be doing better than they have since the mid-1990s economic boom. That is...

Fla. Muni Plan Searches for Large-Cap Managers.
March 15, 2004... The $160 million Pembroke Pines Firefighters' & Police Officers' Pension Fund has launched a search for a large-cap growth and a large-cap value manager, to each oversee approximately $10 million. Karen Warner, the plan's new pension...

Duluth Teachers Search for Int'l Equity.
March 15, 2004... The $300 million Duluth Teachers Retirement Fund Association is searching for an international equity manager to replace Putnam Investments, which was terminated last year. Jay Stoffel, the plan's executive director, said that the manager...

Franklin County Searches for Mid-Cap.
March 15, 2004... The $41 million Franklin County Employees' Retirement System has launched a search for a domestic mid-cap core manager to oversee approximately $2 million of the plan's assets. According to the RFP posted on its consultant's-Dehab...

Virginia Plan Selects William Blair.
March 15, 2004... The $1.4 billion Fairfax County Educational Supplemental Retirement System has added a new money manager to its roster, said Bob Lausier, finance coordinator for the plan. William Blair & Co. has been hired to oversee a $91 million...

Clients Sit Tight, While Others Watch Wilshire.
March 15, 2004... The personnel turnover at investment consulting firm Wilshire Associates has been simply incidental for some plan sponsors, while others have taken action and are making moves to oust the consultant from overseeing their pension plans. ...

Connecticut Seeks Retirement Director.
March 15, 2004... The Connecticut State Comptroller's office has launched a search for a retirement director to replace Steve Weinberger, who is relocating to Florida at the end of the month. Weinberger, who was the administrator of Connecticut's nine...

Janus Predicts Billions in Institutional Outflows.
March 15, 2004... Janus Capital Group issued a report on March 5 stating that the firm expected institutions to withdraw $4.5 billion from its funds in the first quarter. The figure is on top of $1.8 billion in institutional money that walked out the door...

Putnam Ads Tout Post-Scandal Reforms.
March 15, 2004... Putnam Investments-joining the ranks of other investment firms involved in the rash of market-timing and trading scandals-has begun running full-page ads in prominent newspapers. Headlined "Lower Fees, Enhanced Disclosures," the ads walk...

Pure Play ETFs Vs VIPERs: Industry Experts Discuss Dual-Shares Class.
March 15, 2004... With exchange-traded funds rapidly becoming more mainstream investment vehicles, a debate has emerged over how to maximize their tax efficiency capabilities. Plan sponsors looking for a low-cost, tax-efficient investment vehicle have two...

Odds & Ends.
March 15, 2004... *The California State Teachers' Retirement System's investment portfolio reached an all-time high of $116.7 billion. The plan's portfolio has recovered with over $30 billion over the last year and a half. The plan's record low was $85.5 billion...

Marsh & McLennan Off The Hook.
March 22, 2004... Marsh & McLennan, parent company of Putnam Investments, found relief when it was let off the hook by four major pension funds last week. The American Federation of State, County and Municipal Pension Plan, the New York State Common Retirement...

LACERA Plots Small-Cap Value, Consultant Search.
March 22, 2004... The $28 billion Los Angeles County Employees' Retirement Association is gearing up to launch a search for a small-cap value manager and has issued a Request for Information (RFI) for a real estate consultant. Details on the upcoming...

Endowment Fund Watches Lazard.
March 22, 2004... The $750 million Endowment Fund Investment Board of Idaho has placed Lazard Asset Management on watch for performance issues and organizational changes on its $50 million international value equity account. Mark Haertzer, manager of...

Rough Times Ahead for State Retirement Systems.
March 22, 2004... The candle is burning at both ends for state retirement systems as they continue to face crises of falling asset values and increased liabilities, according to a report compiled by Wilshire Associates. The firm's "2004 Wilshire Report on...

UC Launches Consultant Search.
March 22, 2004... The Board of Regents for the University of California is gearing up to launch a search for an investment consultant, according to the minutes of a Feb. 11 board meeting. Contracts for the University's incumbent consultant-Wilshire...

Alameda Transport Auth. Seeks Advisor.
March 22, 2004... The $230 million Alameda County Transportation Authority, in conjunction with the $51 million Alameda County Transportation Improvement Authority has initiated a search for an investment advisor. Anees Azad, finance and administration...

CalPERS Drafts Code of Ethics for Managers.
March 22, 2004... The $167 billion California Public Employees' Retirement System has adopted a standard code of ethics for its external money managers and consultants, a move which comes on the heels of major trading scandals that engulfed a number of the...

WSIB Hires New Int'l Managers.
March 22, 2004... The $54 billion Washington State Investment Board has hired Goldman Sachs Asset Management and Barclays Global Investors to oversee a roughly $1.3 billion international enhanced equity index. Liz Mendizabal, the plan's spokeswoman, said...

M.D. Sass Appoints Taft-Hartley Pro.
March 22, 2004... M.D. Sass Associates, seeking to boost its assets under management, has hired Richard O'Hara as its new senior VP of marketing for the firm's Taft-Hartley group. O'Hara, who was also the senior VP of marketing for America Express Asset...

Northern Trust Hires Domestic Equity Pro.
March 22, 2004... Christopher Vella, formerly the head of the international equity global multi-manager strategies team at Goldman Sachs Asset Management, has joined Northern Trust Global Advisors as director of U.S. equity manager research. He replaces...

Public Funds Fail to File Class Action Suits.
March 22, 2004... Headlines about securities fraud have become so prevalent, they barely raise eyebrows. The Enrons, WorldComs and Tycos of the world have incited many class action suits as a means to recoup losses. However, public pension funds affected by the...

Flawed Benchmarks Hurt Portfolio Managers' Performance.
March 22, 2004... Managers should not benchmark the performance of their growth and value portfolios to the Standard & Poor's or Barra growth and value indexes, a recent study in the Journal of Investment Consulting maintains. The reason? The benchmarks are...

Money Manager's Soft-Dollar Ban Sets Precedent.
March 22, 2004... Soft-dollar advocates are going to have a harder time pleading their case. That's because tainted investment manager MFS Investments announced last week it would put an end to soft-dollar commission payments, representing a major victory for...

AIMR Reluctant to Ease Standards for SMAs.
March 22, 2004... AllianceBernstein, Lord Abbett, Prudential Investments and a number of other large investment management firms represented by the Money Management Institute, have asked the Association for Investment Management and Research (AIMR) to relax some...

Odds & Ends.
March 22, 2004... *Ed Robertiello defected from Blackstone Group to join Asset Alliance Corp. where he is now senior managing director of investments and research. Robertiello oversees hedge fund strategies and manager allocations, manager selection and due...

Louisiana Municipal Comes Under Fire.
March 29, 2004... The $1 billion Louisiana Municipal Public Employees' Retirement System was targeted last week by the state's Attorney General's Office. Louisiana Attorney General Charles Foti announced that he and his staff would be investigating the funds...

IPERF to Launch Large-Cap Value Search.
March 29, 2004... The departure of several key large-cap value executives at Merrill Lynch Investment Managers has spurred the $11 billion Indiana Public Employees' Retirement Fund to launch a search for a replacement manager on its $330 million large-cap value...

Seattle Considers Alternatives Increase.
March 29, 2004... The Seattle City Employees' Retirement System is reviewing its alternative investment portfolio-a move that could lead to changes in the plan's allocation. Mel Robertson, assistant executive director, said that the board could increase its...

Pension Director Is Indicted; Faces Prison Time.
March 29, 2004... Robert Stanton, executive director of the El Paso Firemen & Policemen Fund was reportedly indicted by a grand jury in the Hillsborough County Superior Court for theft and the mishandling of funds of the City of Manchester Employees'...

Sonoma Plots Core-Plus Bond Search.
March 29, 2004... The $909 million Sonoma County Employees' Retirement Association will search for a core-plus fixed- income manager. The search should commence within the next week, said Robert Nissen, retirement administrator for the Santa Rosa,...

Imperial Contemplates Real Estate.
March 29, 2004... The $300 million Imperial County Retirement System is being educated on real estate investing and could create an allocation to the asset class, should the board green light the move. Barbara McFetridge, retirement system manager, said that...

Mass. Board Ponders Small-Cap Search.
March 29, 2004... The Lynn Retirement Board will launch a small-cap growth manager search that could replace incumbent J&W Seligman & Co. Poor performance spurred the search, said Gary Brenner, board administrator. Hank Green, spokesman for the firm,...

Troubled Managers Buy Time at KPERS.
March 29, 2004... The $9 billion Kansas Public Employee Retirement System will-for now-continue to retain AllianceBernstein Institutional Investment Management and Morgan Stanley Investment Management following a probation period dating back to December. ...

Detroit 911 Terminates Three Hires Two.
March 29, 2004... The $3 billion Detroit Police and Firemen Retirement System has terminated Aeltus Investment Management, MFS Investment Management and Putnam Investments and has hired Oppenheimer Capital and Dimen-sional Fund Advisors to oversee $300...

Harvard Money Manager Compensation Under Scrutiny.
March 29, 2004... The compensation policies for the managers at Harvard Management Co.-money manager for the $19 billion Harvard University endowment fund-may soon change as the university's alumni criticized the $34 million in bonuses and salary two of the...

MLIM Creates New Pension Fund Initiative.
March 29, 2004... In an effort to "bring forward one voice" Merrill Lynch has launched its Americas Pension Fund Group, which integrates the components of asset liability, transition management, product coverage, and alternative investments for institutional...

CSFB Creates Alternative Investments Unit.
March 29, 2004... Credit Suisse First Boston has announced the creation of an alternative investments unit, according to IMW sister publication, American Banker. The alternative capital division is to offer products including private equity and hedge funds,...

Russell Touts New Research Group.
March 29, 2004... Russell Investment Group has initiated a consulting and research group for its institutional clientele. Robert Blackwell, group head and managing director of research and strategy, explained that the current market pickup dovetailed with...

Pension Quartet Backs Off Power Play for MMC Board.
March 29, 2004... Four state pension funds have backed off their push to place directors on the board of Marsh & McLennan-parent to Putnam Investments. The revelation follows an MMC pronouncement that it plans to nominate Zachary Carter, a former federal...

One Year Later, Northern Trust Reaps Benefits of DeAM.
March 29, 2004... A year has passed since Northern Trust Corporation acquired the global passive equity, enhanced indexed and fixed-income units of Deutsche Asset Management-an opportunity that has both broadened its market share and boosted the client roster,...

Odds & Ends.
March 29, 2004... *Stefan Bichsel was named the CEO of Robeco USA. He replaces Nassos Michas, who left the firm to pursue new career opportunities and other interests. Bichsel will also replace Michas as the president and CEO of Weiss, Peck & Greer, one of...