Investment Management Weekly articles from October 2003

Investment Management Weekly archives from October 2003

At Press Time.
October 6, 2003... UC to Ordered to Post Data The California State Supreme Court rejected the University of California's final bid to conceal the performance of its private equity investments made on behalf of its retirees. Supreme Court Judge James Richman...

NYC Teachers Aim $1.3B at Real Estate.
October 6, 2003... The $26 billion New York City Teachers' Retirement System intends to invest 5% of the plan's total value, or approximately $1.3 billion in core real-estate by mid-2004, a city official said. Special Assistant to the New York City...

Union Plan Mulls Manager Changes.
October 6, 2003... The $2 billion Carpenters Union of Southern California could be in the process of filling holes in its manager lineup. "We've undergone some changes [in our managers]," said the Taft-Hartley's Senior Fund Officer Ron Schoen. He declined to...

Oklahoma Police Eyes International Equity.
October 6, 2003... The $1.2 billion Oklahoma Police Pension and Retirement Fund will launch a search for an international smid-cap manager in the coming weeks. Robert Wallace, executive director said that the search was being launched to diversify the plan's...

San Diego County Seeks CIO.
October 6, 2003... Jerry Woodham, CIO of the $4.2 billion San Diego County Employees' Retirement Association has resigned from the post to return to his foundation and endowment roots. Woodham, who had been with the plan for approximately two years, tendered...

Morgan Stanley Sheds Portfolio Managers.
October 6, 2003... Dozens of institutional investment portfolio managers for Morgan Stanley Investment Management were terminated on Sept. 30, as first reported on IMW's Web site, www.imweekly.com spokeswoman Connie Kain said. The action reportedly swept...

Okla. City Seeks Growth Manager.
October 6, 2003... The Oklahoma City Employees' Retirement System is searching for an international growth manager to oversee assets equal to 5% of the plan's total worth, or approximately $17 million. Retirement System Manager Rena Hutton said the board...

BGI Snags Another IPERS' Contract.
October 6, 2003... The $16 billion Iowa Public Employees' Retirement System has handed yet another investment mandate to existing manager Barclays Global Investors, IPERS Real-Estate Investment Officer Pat Reinhardt said. In a search launched in March for a...

Ann Arbor Releases GLOBALT.
October 6, 2003... The $300 million City of Ann Arbor Employees Retirement System has terminated GLOBALT from its $15 million large-cap growth account, ending a six-year relationship. The manager, which was being monitored for approximately 18 months, was...

CSAM Snags BlackRock Pro.
October 6, 2003... Credit Suisse Asset Management hired Dennis Schaney as global head of fixed income, a new position. Schaney will oversee the firm's fixed-income products and investment performance. He joins CSAM from BlackRock Financial Management, where he...

Portfolio Duo Shifts to Wells Capital.
October 6, 2003... Wells Capital Management has hired Roger Newell and Jennifer Newell as part of its equity portfolio team, said Kirk Hartman chief investment officer at the firm. Presently, the father-daughter team serves as the principals of the...

Indiana Picks Int'l Growth Manager.
October 6, 2003... The $9 billion Indiana Public Employees' Retirement System has selected Baillie Gifford & Co to manage a $200 million international growth account, said PERFI spokesman Patrick Lane. The search was launched in July, along with a second...

St. Paul Teachers Snags First Real-Estate Mgr.
October 6, 2003... The $740 million St. Paul Minnesota Teachers' Retirement System will reach a decision this week concerning a new core, commingled real-estate manager for the plan, Executive Director Phil Kapler said. The board on Wednesday will decide from...

Austin's Finest Hire Waddell & Reed.
October 6, 2003... Waddell & Reed Asset Management Group last week prevailed over two other finalists in a $7.5 million small-cap growth search conducted by the $262 million Austin Police Retirement Fund. Last week, IMW reported that the fund had selected...

L.A. Plan Hires Three For Int'l Equity.
October 6, 2003... The $5.8 billion Los Angeles Water & Power Retirement Plan has hired three new managers in a move to commit almost $700 million to international developing-market equity, Employee Benefits Officer Duamel Vellon said. Delaware Capital...

Inertia Dogs Canadian Government Reforms.
October 6, 2003... While Canadian companies' governance standards are progressing, they need to work harder in order to restore shareholder confidence, according to a recent report by Rotman School of Management's Clarkson Centre for Business Ethics and Board...

Are the SEC's Hedge Fund Concerns Unwarranted?
October 6, 2003... Last week, the Securities and Exchange Commission (SEC) issued a number of recommendations aimed at regulating the hedge fund industry. Recommendations included requiring hedge fund advisors to register as investment advisors, disclosure of...

SEC to Grant Voting Power to Shareholders.
October 6, 2003... The Securities and Exchange Commission (SEC) is expected to vote on a set of rules Wednesday that would significantly change the role larger shareholders play in governing publicly traded companies, SEC spokesman John Nestor said. The...

FCA's Scharar: ADRs Help Funds Cash In on Foreign Investments.
October 6, 2003... While recent legislation easing the taxation of investment returns on dividends and capital gains is good news, FCA Corp. President Robert Scharar cautioned that many foreign markets still lack U.S. tax treaties; in other words, the new lower...

At Press Time.
October 13, 2003... CEOs: Outlook Is Picking Up Chief executives are more confident in the nation's economy than they were last quarter, according to The Conference Board's most recent measure of business confidence report. The indicator, which improved...

San Bernardino Plans Emerging Markets Search.
October 13, 2003... The $3.2 billion San Bernardino County Employees' Retirement Association will launch a search for an emerging markets equity manager to oversee 3% of the plan's total worth, or approximately $96 million, San Bernardino Senior Investment Analyst...

San Jose Ramps Up for Multiple Searches.
October 13, 2003... Armed with a new asset allocation, the $1.1 billion San Jose Federated City Employees Retirement System is launching several manager searches, which could exceed $20 million, plan spokesman Ron Kumar said. Strategic Investment Solutions,...

Putnam Fails to Notify Some Plans About Subpoena.
October 13, 2003... Global investment firm Putnam Investments has fallen under the close scrutiny of Massachusetts regulators in an investigation of possible market timing by the firm. Massachusetts Secretary of State William Galvin's office has issued...

Wilshire Starts Equity, Bond Searches.
October 13, 2003... Over $351 million in corporate assets are up for grabs in a number of corporate searches spearheaded by consulting firm Wilshire Associates, Wilshire spokeswoman Tamara Kahn said. Kahn declined to name the corporate fund or funds involved...

Missouri Plan to Study Assets After CIO Hire.
October 13, 2003... The $1.3 billion Missouri Highway & Transportation Highway Patrol will re-launch an asset allocation study under the watch of a new chief investment officer, a move that could result in searches. Missouri Executive Director Norm Robinson...

Rhode Island Hires Real Estate Advisor.
October 13, 2003... Setting the stage for real-estate manager searches, the $5.3 billion Rhode Island Employees' Retirement System has hired The Townsend Group as its real-estate consultant, Rhode Island spokeswoman Stephanie Sheehan said. Townsend will...

Oklahoma Places Artemis on "Notice".
October 13, 2003... Citing performance issues, the $5.8 billion Teachers' Retirement System of Oklahoma has placed manager Artemis Investment Management "on notice" concerning a small-cap equity account it oversees for the plan, Oklahoma Executive Secretary Tommy...

San Mateo to Review Manager Lineup.
October 13, 2003... The $1.3 billion San Mateo County Employees Retirement Association will launch a soup-to-nuts review of its manager lineup, a move that could potentially lead to searches. San Mateo CEO Sid McCausland said that while the plan routinely...

Fort Collins Studies Alternatives.
October 13, 2003... The $30 million Fort Collins General Employees Retirement System is studying the alternative investment sector, and could seek to make a first-time allocation if the board greenlights the effort. "Right now, we are just studying what kinds...

El Paso 911 Hires Causeway.
October 13, 2003... The $435 million El Paso Firemen & Policemen's Pension Fund has selected Causeway Capital Management as its new international value equity manager, El Paso Pension Administrator Robert Stanton said. The plan will direct approximately $50...

San Diego City Hires for Real Estate.
October 13, 2003... The $2.6 billion San Diego City Employees' Retirement System has hired Invesco Realty Advisors as its new real-estate manager, replacing the now-defunct PMRealty Advisors. San Diego City Chief Investment Officer Doug McCalla said that the...

Consulting Seat Open At Larry Thompson.
October 13, 2003... Larry Thompson & Associates is searching for a new investment consultant to assist the Dallas-based firm with client responsibilities, a representative for the firm said. The consulting firm caters to the full spectrum of investors,...

HSBC North America Names New Chief.
October 13, 2003... HSBC Asset Management has promoted Steve Baker to CEO of HSBC Asset Management North America. He reports both to Alain Dromer, global CEO of HSBC, and to Leslie Bains, head of domestic private banking and wealth management. Baker has...

Hancock Creates Consultant Liaison.
October 13, 2003... John Hancock Advisers has hired Robert Mullin as director of consultant relations, a newly created position. Mullin, who was most recently the director of consultant relations at Pioneer Investment Management, joined John Hancock on Sept....

Bear Stearns Beefs Up Services.
October 13, 2003... Bear Stearns tapped Betsy Bliss as a managing director in its private client services division in San Francisco to try to grow the business. Bliss currently provides asset management and consulting services to high-net-worth individuals,...

SEC to Grant Voting Power to Shareholders.
October 13, 2003... Last week, the Securities and Exchange Commission approved staff recommendations that would allow shareholders to nominate director candidates on company proxy materials. The proposal has entered a 60-day comment period, and could become...

Mellon's Bean Seeks Success in Distress.
October 13, 2003... The popularity of hedging strategies as high-return vehicles for a growing number of institutional investors has Jonathan Bean, the co-founded of Mellon HBV Alternative Strategies, fired-up about the firm's latest hedged investment offering....

Fixed Income's Share Of SMAs Has Peaked.
October 13, 2003... While risky equity markets have driven hoards of investors towards the security of fixed-income instruments, the overall market share for fixed-income vehicles within the universe of investment options for separately managed accounts (SMAs) may...

At Press Time.
October 20, 2003... Long-Term Stance Pays Off Funds with a lower than average turnover have outperformed their higher turnover peers in all nine domestic fund styles on a three and five-year annualized basis, according to new data from Standard & Poor's. ...

Big Apple System Ramps Up for Major Changes.
October 20, 2003... In a move that could trigger a wave of manager searches, the $94 billion New York City Retirement System is in the process of revamping the asset allocations of all four of its pension funds, New York City Comptroller William Thompson said last...

Illinois Aims Millions at Homegrown Tech.
October 20, 2003... The $5 billion Office of the Illinois State Treasurer plans to invest anywhere from $20 million to $50 million per year over the next three years in a wide range of asset classes, Treasury Deputy Chief of Staff Martin Noven said. Set to...

Louisiana Cops Look to Add Real Estate.
October 20, 2003... The $1.1 billion Louisiana Municipal Police Employees' Retirement System has launched a search for a core real-estate manager, according to the investment committee's most recent minutes. On Aug. 20, the committee directed its consultant,...

WSIB Hunts Transition Teams.
October 20, 2003... The $52 billion Washington State Investment Board has launched a search for transition managers, according to a request for proposal (RFP) posted on the board's Web site at www.sib.wa.gov. The investment board is looking to retain several...

N.J. Seeks Consultant, Searches Loom.
October 20, 2003... In a series of firsts, the investment council of the $57 billion New Jersey Division of Investments is working its way down a list of candidates for a general consultant to the pension fund, a hire that could result in the state's first...

Oklahoma Narrows Manager Search.
October 20, 2003... The investment committee of the $354 million Oklahoma City Employee Retirement System has arrived at a list of three finalists in a search for an international growth manager to oversee 5% of the plan's total value, or approximately $17...

Cincinnati Boosts Liability Study.
October 20, 2003... The $2.1 billion Cincinnati Retirement System has aimed significant additional resources at an ongoing asset/liability study, which could result in a range of manager searches, although officials remain tight-lipped on how large any resulting...

City Plan Taps First Hedge Fund Manager.
October 20, 2003... J.P. Morgan Chase is set to become the first hedge fund manager for the $90 million Sterling Heights General Employees' Retirement System, Sterling Heights Pension Administrator Rick Sanborn said. With the assistance of consultant Timothy...

PSERS Picks Lubert-Adler Fund VI.
October 20, 2003... The $42 billion Pennsylvania Public School Employees Retirement System (PSERS) is set to invest 25% of committed capital-or up to $150 million-in Lubert-Adler Real Estate Fund IV, according to a statement issued by Institutional Real Estate...

REIT Returns Are Rosy.
October 20, 2003... Real-estate investment trusts (REITs) returned close to 3.4% in September, according to data produced by The National Trade Association of Real-Estate Investment Trusts (NAREIT). For the first three quarters of 2003, REITs returned...

NEPC Expands With New Offices.
October 20, 2003... Boston-based New England Pension Consultants has opened offices in both the Detroit and Las Vegas areas. Paul Kenney, who joined NEPC in June 2002, and Doris Ewing are currently heading the Detroit office. Both are senior consultants with...

Lord Abbett Renames Group.
October 20, 2003... To keep in tune with market speed and growth, Lord Abbett's Private Advisory Services department will now be called the Separately Managed Accounts Department, the firm announced last week. As of June 2003, the SMA industry accounts for...

Future Looks Good for Corporate Reform, Interfaith Audience Is Told.
October 20, 2003... The push by socially responsible investors for corporate reform and to help create more responsible businesses has reached a point of real and substantial progress, according to Connecticut state Treasurer Denise Nappier who spoke at the recent...

Third Avenue's Winer Expands Real-Estate Universe.
October 20, 2003... Unlike many real-estate investment vehicles that tend to deal primarily in real-estate investment trusts (REITs), Michael Winer, portfolio manager for Third Avenue Management's Real Estate Value Fund, believes in a broader view of opportunity...

Investors Ignore Threat of Post-Retirement Benefit Defecit.
October 20, 2003... While investors and lawmakers alike have fretted over the underfunded status of companies' pension plans, they have largely ignored the state of these companies' OPEB (other post-retirement employee benefit) plans. This could come back to haunt...

At Press Time.
October 27, 2003... Tech to the Rescue? Last week, California State Controller Steve Westly asked the New York Stock Exchange to study how new technology might help reduce transaction costs, better match buyers and sellers and avoid conflicts of interest. ...

N.H. Plan Drops Fred Alger Amid Scandal.
October 27, 2003... The $4.3 billion New Hampshire Retirement System has terminated Fred Alger Management from its $209 million large-cap growth account, ending a relationship that spanned almost two decades. Eric Henry, the plan's executive director, said...

Minn. Cops Investigate Manager Performance.
October 27, 2003... Facing disappointing investment returns, the $405 million Minneapolis Police Relief Association plans to size up its entire manager lineup, Minneapolis Board President Larry Ward said. Beginning in November, the plan's consultant, Kevin...

Bonds Tumble, Equity Inches Up in 3Q03.
October 27, 2003... While investors basked in the upward momentum of the equity markets in the second and third quarters of 2003, the bond markets took its worst turn in decades last quarter. IMW data showed that search activity in domestic fixed-income...

Santa Barbara Puts Two in the Hotseat.
October 27, 2003... This week, the $1.3 billion Santa Barbara County Employees' Retirement System will decide the fate of two of its managers, Santa Barbara Senior Fund Officer Oscar Peters said. Lincoln Capital Fixed Income Management and Nicholas-Applegate...

Baring Changes Spark $20m Mass. Search.
October 27, 2003... The $278 million Massachusetts Port Authority Employees' Retirement System (MPA) has launched a search for a $20 million international core/growth equity manager, MPA Treasurer Leslie Kirwan said. MPA's consultant, Mark Brubaker of...

LP Corp Mulls Manager Changes.
October 27, 2003... Louisiana-Pacific Corp. is reassessing recent manager changes in an ongoing effort to increase returns on investments for the company's pension plans, LP Pension Representative Sean Koch said. The maker of millwork, plywood and related...

Bayou Hoses Seek Consultant.
October 27, 2003... The $610 million Louisiana Firefighters' Retirement System is searching for a general investment consultant, Louisiana Executive Director Steven Stockstill said. A request for proposal (RFP) for the position is available via e-mail at...

AllianceBernstein CIO Adelson to Retire.
October 27, 2003... After 22 years with the firm, Andrew Adelson, chief investment officer and manager of international investments for AllianceBernstein Institutional Investment Management, is hanging up his hat, a staff member at the firm said. Adelson, 48,...

Boutique Shop Names New Marketing Head.
October 27, 2003... Pugh Capital Management, the Seattle-based fixed-income money manager, has named Paul Ravetta as its new marketing director. Ravetta, most recently the assistant director of sales and marketing at Safeco Asset Management, left Safeco after...

Highland Adds Two.
October 27, 2003... Last week, Highland Capital Management added two new managing directors, the firm said in a statement. Ronald Ernst has joined Highland after four years with Houston-based Vaughan, Nelson, Scarborough & McCullough, where he was director of...

Independent Fiduciaries Help Limit Pension Risks.
October 27, 2003... A renewed focus on corporate governance issues has pension plan sponsors turning to independent third-party fiduciaries for help evaluating, monitoring and administering ERISA retirement plans. Independent fiduciaries are taking on more...

AmSouth's Deckbar on Cracking the Taft-Hartley Market.
October 27, 2003... Carol Deckbar, senior VP of product development for AmSouth Asset Management in Birmingham, Ala., faces a challenge common to institutional investment firms-breaking into the closely-knit and sometimes secretive world of Taft-Hartley pension...

Nicholas-Applegate's Gupta Banks on Optimism.
October 27, 2003... Prabal Gupta, who heads up Nicholas-Applegate's Institutional Funds team, is a man with a mission: One of the firm's mandates is to have 25% of its total assets under management-equal to about $4.7 billion based on the firm's current total of...