Investment Management Weekly articles from May 2003

Investment Management Weekly archives from May 2003

Your PIN Number, Please.
May 5, 2003... The U.S. Treasury Department last week issued the final regulations implementing Section 326 of the U.S.A. Patriot Act, which requires that financial institutions establish minimum procedures for the identification and verification of customers...

N.Y.C. Set to Launch Three Large-Cap Searches.
May 5, 2003... The $94 billion New York City Retirement System will issue a request for proposal (RFP) for three large-cap growth U.S. equity managers this October, a source familiar with the retirement system said. Three mandates totaling approximately...

CalSTRS to Issue Corporate Governance RFP.
May 5, 2003... The $90 billion California State Teachers' Retirement System is gearing up to issue a request for proposal (RFP) for one or more managers to oversee its fledgling corporate governance investment program. A mandate size is yet to be...

L.A. 911 Scrutinizes Value Manager Over Merger.
May 5, 2003... The $9.7 billion Los Angeles Police & Fire Retirement System has intensified its focus on its large-cap value manager, CIC Asset Management, citing the firm's plans to merge with Valenzuela Capital Partners. CIC oversees a $102 million...

Missouri to Launch Real Estate Search.
May 5, 2003... The board of the $1.3 billion Missouri Highway & Transportation Highway Patrol is anticipating a real estate manager search this summer, Missouri Executive Director Norm Robinson said, adding that a real estate investment would come first. ...

San Joaquin To Search for REITs.
May 5, 2003... The San Joaquin County Employees' Retirement System is planning to add a real estate allocation to its approximately $1.2 billion portfolio, San Joaquin Plan Administrator Robert Palmer said. The plan's board initiated a 7% allocation to...

Philly Plans Small-Cap Manager Search.
May 5, 2003... The board of the $5.3 billion Philadelphia Board of Pensions & Retirement is planning to search for a small-cap money manager to oversee approximately $40 million within the next few months, Philadelphia Acting Chief Investment Officer Anthony...

Memphis in Midst of Index Manager Search.
May 5, 2003... The board of the $1.8 billion Memphis City Retirement System is working down a short list of candidates for a domestic index fund manager, Memphis plan representative Sam Johnson said. Potential managers are being considered from the...

Mass. Plan Searches For Tactical Manager.
May 5, 2003... The $18 million Winthrop Town Retirement System has launched a search for a $14 million U.S. tactical asset allocation manager, WTRS Senior Fund Officer Jeanne Darcy said. Robert Fishman with New England Pension Consultants is conducting...

Utah Replacing Unethical CIO.
May 5, 2003... The $14 billion Utah State Retirement System has terminated Richard Cherry from his chief investment officer (CIO) position and has launched a search for a replacement Cherry served as the plan's CIO for nearly 20 years prior to being...

Virginia Delays Consultant Search.
May 5, 2003... The Commonwealth of the State of Virginia's search to find a consultant to advise on the investment of approximately $684 million in tobacco settlement fund has been put on hold in mid-process, Virginia State Procurement Officer Tina Mizelle...

Winchar Quits Phoenix Returns To Consulting.
May 5, 2003... Denise Winchar, president of Phoenix Investment Partners' Institutional Markets Group, has left the firm. Sharon Bray, the firm's spokeswoman said that Winchar left the firm on April 17 to return to the consulting side of the business. ...

L.A. Utility Adds Domestic Equity.
May 5, 2003... The board of the $5.8 billion Los Angeles Water & Power Retirement Plan has reshuffled its plans for domestic equity investments, adding opportunities for two large-cap value managers to oversee mandates of $212 million each, Los Angeles Water...

Offshore Arrangements Raise Funds' Concern.
May 5, 2003... Some large institutional investors have begun to take action against companies' use of abusive tax shelters, particularly in the form of offshore tax havens. American Federation of State, County and Municipal Employees Director of Pension...

Vanguard Takes On Overseas Arbitragers.
May 5, 2003... Launching what it is calling a pre-emptive strike against arbitrage traders, Vanguard announced plans to charge these opportunists a 2% redemption fee on the sale of shares held less than two months on nine of its international equity funds....

FASB Rule to Expense Options Next Year.
May 5, 2003... The Financial Accounting Standards Board voted unanimously to require companies to expense stock options. The standard-setter hopes to issue a final standard in April 2004, FASB spokeswoman Sheryl Thompson said. FASB attempted to institute...

Most Buy-Siders Use Sell-Side Reports for Tips, Despite Conflicts.
May 5, 2003... While the buy-side doesn't put much stock in sell-side research, the majority of institutions still buy Wall Street research, according to a recent survey. Over three-quarters of institutional investors buy-sell-side research to keep...

Franklin Advisers' Palani on the Risk of Pure Indexing.
May 5, 2003... Prabhu Palani, the senior VP and director of institutional strategies for Franklin Advisers, has a word of warning for institutional investors concerning the returns that can be expected from a pure index fund. "Your returns almost always fall...

Collateral Improvement.
May 19, 2003... J.P. Morgan will launch its clearance and collateral management division this week, a cash collateral service for broker/dealers seeking to comply with the Securities and Exchange Commission Rule 15c3-3, which requires special accounts to...

South Carolina Terminates J.P. Morgan Fleming.
May 19, 2003... The budget and control board of the $21 billion South Carolina Retirement System has terminated J.P. Morgan Fleming Asset Management from a roughly $200 million large-cap core account, due to poor performance, South Carolina spokesman David...

Orange County Watches One, Terminates Three.
May 19, 2003... The $4 billion Orange County Employees' Retirement System has made significant changes to its manager lineup, putting one manager on watch and terminating three others. At its May 7 board meeting, Orange County's investment committee...

Contra Costa County Courts Real Estate Managers.
May 19, 2003... The $2.6 billion Contra Costa County Employees' Retirement System is searching for one or more real estate managers, according to a source familiar with the plan. The plan is looking into a number of different types of real estate...

InvestorForce Ranks Top Performers.
May 19, 2003... Ashmore Investment Management and Arnhold and S. Bleichroeder Advisers were among the top performers, according to InvestorForce's quarterly survey of institutional investment manager performance. The survey was based on performance...

Fairfax Plan Halts Alternative Searches.
May 19, 2003... The $1.3 billion Fairfax County Educational Employees' Supplemental Retirement System has postponed plans to split 10% of the fund's total value between a hedge fund program and a private equity fund, Fairfax County Executive Director Alan...

Maryland Board Selects New Director.
May 19, 2003... Thomas Lee has been named the new executive director of the Maryland State Retirement and Pension Systems, Maryland State spokesman Joe Coale said. Lee replaces Peter Vaughn who retired from the $25 billion pension system in December for...

Kern County Terminates HSBC.
May 19, 2003... The $1.5 billion Kern County Employees' Retirement Association has officially informed HSBC Asset Management Americas that it will be terminated from its approximately $30 million non-U.S. equity account, Kern County Retirement Administrator...

Luzerne Update: Flood Strikes Back.
May 19, 2003... In reaction to the results of a forensic study conducted by the $142 million Luzerne County Retirement Board, former fiduciary ASCO Financial has filed a defamation suit against Luzerne County Controller Steve Flood, sources said last week. ...

Marin County Selects Alternatives Finalists.
May 19, 2003... Looking to add a market-neutral, absolute-return strategy to its investment portfolio, the $880 million Marin County Employees' Retirement Association has arrived at six finalists to compete for three $10 million mandates, one or more of which...

San Diego County Hires Three.
May 19, 2003... In the wake of an 8% reduction in equity exposure, the $4.3 billion San Diego County Employees' Retirement System has hired three new managers, San Diego County Chief Investment Officer Jerry Woodham said. The plan awarded Ashmore...

Milwaukee Triples Contribution Rate.
May 19, 2003... In an effort to meet revised actuarial requirements, the board of trustees at the $1.4 billion Milwaukee County Employees' Retirement System has tripled the plan's contribution requirements, Milwaukee Board Secretary Matt James said. ...

Denver Sends T. Rowe Price Packing.
May 19, 2003... The $2.5 billion Denver Public School Retirement System has terminated T. Rowe Price from a $50 million international core growth equities account, Denver Executive Director David Stella said. The plan moved quickly to replace the manager,...

MOSERS Closes In on Timber.
May 19, 2003... The $5.2 billion Missouri State Employees' Retirement System is in the final stages of a search for one or more real estate managers to oversee the plan's first timber investments, Missouri State spokeswoman Meg Cline said. Cline called...

Tulare Risks Enhanced, Active Contracts.
May 19, 2003... The $700 million Tulare County Employees' Retirement Association is close to a decision concerning searches for a $70 million enhanced index manager and a $35 million active large-cap growth manager, Tulare Senior Fund Officer David Kehler...

Relationships, Execution Key To Quality Transitions ICMA's Tobey Says.
May 19, 2003... When it comes to enlisting the services of an asset transition manager, ICMA Retirement Corp. Senior VP and Chief Investment Officer John Tobey says it's better the devil you know. "The best results are achieved by firms who have a...

Tremont Develops Hedge Benchmark.
May 19, 2003... Tremont Advisors Inc. has developed benchmark criteria that is expected to help eliminate risks and trim losses in the hedge fund industry, the company announced last week. After compiling research on what would be an appropriate...

I-Banks See Turnaround.
May 26, 2003... Investment banks are seeing improved results, according to a Boston Consulting Group report. Following a slew of less-than-stellar quarters, the report said that a favorable trading environment coupled with continued cost-cutting efforts...

MERS Hunts International Equity Managers.
May 26, 2003... The $3.7 billion Municipal Employees' Retirement System of Michigan (MERS) is searching for as many as three new international managers-a move that will replace the recently terminated Lombard Odier International Portfolio Management, MERS...

Kentucky Mayor Proposes V.C. Investments.
May 26, 2003... Louisville Metro Mayor Jerry Abramson is gearing up to present the board members of the Kentucky Retirement System (KRS) and the Teachers Retirement System of Kentucky with a proposal for both plans to allocate a combined 2% to 3%, or...

New York State Invests in Israeli Private Equity.
May 26, 2003... Bullish on a region marked by terrorism and a sinking economy, New York State Comptroller Alan Hevesi late last week pledged $200 million of the New York State Common Retirement Fund's assets to private equity investment in Israel. Half of...

Santa Barbara Seeks EAFE PM.
May 26, 2003... The $1.3 billion Santa Barbara County Employees' Retirement System has launched a search for a Europe, Australasia and Far East (EAFE) manager to oversee a mandate of 3% of the plan's total value, or approximately $39 million, Santa Barbara...

Philadelphia Pension Board Eyes Bonds.
May 26, 2003... The $5.3 billion Philadelphia Board of Pensions & Retirement has launched a search for managers to oversee up to $200 million in core and core plus fixed-income mandates Philadelphia Acting Chief Investment Officer Anthony Johnson said. ...

Cambridge Launches Fixed-Income Search.
May 26, 2003... The $450 million Cambridge Retirement System has issued a request for proposal for a core fixed- income manager. Details of the search were scant as Cambridge Executive Director Anne LeDuc was unavailable for comment. Chris Tehranian,...

El Paso County Eyes Real Estate.
May 26, 2003... The $170 million El Paso County Retirement System will search for a manager to oversee an allocation to real estate later this year. El Paso Administrator David Klemmer said that the plan could allocate 3%, or approximately $5 million, to...

Virginia Seeks Multiple Consultants.
May 26, 2003... The Department of Treasury for the Commonwealth of Virginia is searching for what could prove to be as many as eight consultants to advise four of its investment boards, Treasury Procurement Officer Tina Mizelle said. Four investment...

Colorado Plans Private Equity Allocation Cut.
May 26, 2003... The $23.6 billion Colorado Public Employees' Retirement System is planning to pull up to $800 million out of the private equity markets, reducing its exposure to the asset class from $2.7 billion to $1.9 billion over the next few years. ...

Imperial County Drops Buck After 25 Years.
May 26, 2003... After a 25-year relationship, the $308 million Imperial County Employees' Retirement System has said goodbye to its long-time actuary Buck Consultants, Imperial County Employee Benefits Officer Barbara McFetridge said. Last week, the board...

Scudder/Deutsche Pro Leaves for Bessemer.
May 26, 2003... Deutsche Asset Management has lost sales consultant and former Zurich Scudder Investments employee Michael Weaver to Bessemer Trust Co., where he will assume the position of sales marketer, according to sources familiar with the situation. ...

ABN Amro Launches High-Yield Fund.
May 26, 2003... Following the success of its European high yield bond fund, ABN Amro is gearing up to unleash a U.S.-based product of the same magnitude, ABN Director of Marketing Michael Castilo said. "We've had a lot of success in Europe and we would...

SFSERS Picks Portfolio Advisors.
May 26, 2003... Severing a 14-year relationship that has generated returns of 18% on its private equity portfolio over the last five years, the San Francisco City & County Employees' Retirement System (SFSERS) last week finally parted ways with Cambridge...

CalPERS Presses for State Governance Law.
May 26, 2003... The California Public Employees' Retirement System is urging its home state to toughen its stance on corporate governance. Specifically, CalPERS is backing Senate Bill 777, which was introduced by Sen. Martha Escutia (D., Calif.). With...

SEC May Up Criteria For Hedge Funds.
May 26, 2003... An increased focus on investor suitability as it pertains to hedge fund investing will likely be one of a few short-term actions taken by the Securities and Exchange Commission in the wake of the SEC's recent industry roundtable discussion on...

AIMR, NIRI Create Relationship Taskforce.
May 26, 2003... The Association for Investment Management and Research has teamed up with the National Investor Relations Institute to create a joint taskforce on the relationship between companies and analysts. The partnership will result in a series of...

TF Targets Intangibles.
May 26, 2003... Thomson Financial has launched a new product aimed at helping companies identify and communicate the value of their intangible assets. Dubbed "IntangiblesIQ," the product puts a price on companies' corporate governance, customer and brand...

Frank Russell's Reynolds: Transition Management Needs A Standard.
May 26, 2003... Frank Russell Securities President Paul Reynolds wants to see a standard applied to the performance of transition managers in much the same way that the Association for Investment Management and Research (AIMR) developed the global investment...