Investment Management Weekly articles from October 2006

Investment Management Weekly archives from October 2006

New Accounting Standards On the Way.
October 2, 2006... The Financial Accounting Standards Board is expected to issue new standards on pension accounting that would require corporations to completely recognize their defined-benefit, retiree health care and other postretirement benefit plans'...

Alameda County Eyes Emerging Managers.
October 2, 2006... The nearly $5 billion Alameda County Employees' Retirement Association (ACERA) could add emerging managers to its roster of portfolio managers. While the pension fund's investment committee discussed the matter at its monthly meeting on...

Alaska Perm. Fund Approves Global Equity: Manager Searches to Come?
October 2, 2006... The $34.6 billion Alaska Permanent Fund Corporation (APFC) has decided to add a global equity allocation of 14% to its asset allocation, said Laura Achee, spokeswoman for the plan. The board has been looking at the asset class in...

Russell: Managers Still Like Large-Cap.
October 2, 2006... Could U.S. large-cap growth stocks be losing their luster? Perhaps just a bit, according to the findings of the recent Russell Investment Manager Outlook quarterly survey. Money managers are only 58% bullish on the sector compared to an...

Conn. Fund Fires Consultant.
October 2, 2006... The board of the $137 million Norwich City Employees' Retirement System has reportedly decided to reverse a decision it made in August, which will sever ties with its consultant. Vivian LaPointe, the administrator for the Connecticut...

OCERS Interviews Private Equity Finalists.
October 2, 2006... The real estate committee of the $6.5 billion Orange County Employees' Retirement System (OCERS) interviewed finalists in its search for a private equity fund-of-funds manager. According to the agenda for the plan's Sept. 13 meeting, the...

Ohio PERS Names New Director.
October 2, 2006... Christopher DeRose has been named executive director of the $73 billion Ohio Public Employees' Retirement System, as first reported on imweekly.com (9/25/06). He will start Oct. 30. DeRose joins the fund from the Michigan Retirement...

New Mexico Considers Alternative Investmts.
October 2, 2006... The $11.5 billion New Mexico Public Employees' Retirement Association (NMPERA) is considering awarding mandates to two alternative investments fund managers, according to the fund's Web site. The investment committee has recommended a $20...

Ann Arbor Selects Int'l Finalists.
October 2, 2006... The City of Ann Arbor Employees' Retirement System will interview Wentworth, Hauser & Violich, Thornburg Management Company, Thomas White International and Fisher Investments for an international equity account, according to the fund's Web...

LACERA Winds Down Searches.
October 2, 2006... The board of investments for the $32 billion Los Angeles County Employees' Retirement Association (LACERA) has recommended selections in its search for a domestic enhanced core fixed-income manager, as well as selected finalists in its search...

Dallas Guns & Hoses Hires Managers.
October 2, 2006... The $2 billion Dallas Police & Fire Pension (DPFP) System was expected to approve several investments at its Sept. 14 board meeting. According to DPFP's Web site, the plan was putting the finishing touches on a $16 million investment in...

Texas Endowment Sticks With Cambridge.
October 2, 2006... The $19.4 billion University of Texas Investment Management Company (UTIMCO) has renewed its contract with Cambridge Associates, confirmed Christy Wallace, interim spokeswoman for the fund. UTIMCO oversees the assets for the Board of...

Bayou Cops Hire Real Estate Managers.
October 2, 2006... The investment committee for the $375 million Louisiana State Police Retirement System (LSPRS) came to a decision regarding the plan's search for a core real estate manager, according to the minutes from its Sept. 13 meeting. The committee...

California Joins In on Sudan Divestiture.
October 2, 2006... California's two largest public pension funds, the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS) must rid their portfolios of all companies doing business with the...

Parametric's Quisenberry: Volatility is Decreasing in Emerging Markets.
October 2, 2006... For investors who remember the emerging markets crash in the mid-1990s, the notion that such markets are losing some of their volatility and risk might seem a bit counterintuitive. So might the idea that one should not try to weight the various...

Odds & Ends.
October 2, 2006... * Morningstar has announced the appointment of four new members to the senior management and research teams at its investment advisor subsidiary Ibbotson Associates. Liz Michaels, has been appointed VP of advice services, Michele Gambera has...

FASB Nixes Proposed Rule.
October 9, 2006... The Financial Accounting Standards Board (FASB) voted not to require companies to disclose their expected pension contributions for the next five years. The board felt that the Securities and Exchange Commission's rule that requires companies...

Ohio Teacher's Seek Buyout Manager.
October 9, 2006... The $65.4 billion State Teachers' Retirement System of Ohio (STRS) has issued an RFP for a domestic middle market buyout program manager to oversee a mandate that is anticipated to be $200 million, using a fund-of-funds approach. The...

Kern County Places PIMCO on Watch.
October 9, 2006... The $2.4 billion Kern County Employees' Retirement Association (KCERA) has placed PIMCO on watch. According to the California plan's Web site, the manager is being monitored due to underperformance on its StocksPlus fund. Further details...

Audit Reveals Illegal Activity at Minn. Fund.
October 9, 2006... Minnesota State Auditor Pat Anderson has finished her investigation into the activities of the board of the now-defunct Minneapolis Teachers' Retirement Fund Association (MTRFA), finding violations of 10 state laws. Anderson initially...

California Fund Studies Assets.
October 9, 2006... The $1.8 billion San Mateo County Employees' Retirement Association has launched an asset liability study, said David Bailey, CEO at the California fund. Bailey said that the study would encompass asset classes such as domestic...

Gotham City Funds Seeks Advisor.
October 9, 2006... The City of New York Office of the Comptroller has issued an RFP for real estate investment advisory services for the $94.2 billion New York City Retirement Systems (NYCRS)-which includes the Employees' Retirement System, the Teachers'...

CalSTRS Hunts for Transition Manager.
October 9, 2006... The $143.2 billion California State Teachers' Retirement System (CalSTRS) has issued an RFP for transition managers. Brenna Neuharth, spokeswoman for CalSTRS, explained that the plan currently does not have any transition managers on its...

City of Phoenix Issues RFP.
October 9, 2006... The $1.3 billion City of Phoenix Employees' Retirement System (COPERS) has launched a search for a global tactical asset allocation/real return strategy manager to "provide a portfolio of inflation-hedging instruments managed in a global...

Alabama Trust Fund Seeks Consultant.
October 9, 2006... The Alabama Office of the State Treasurer has kicked off a search for an investment consultant to assist with the $2.8 billion Alabama Trust Fund. According to the RFP, the fund currently utilizes 13 active investment managers, with three...

Money Manager Hires New Product Head.
October 9, 2006... Evergreen Investments has named a new global head of product, the asset management firm announced last week. Scott Couto will be responsible for Evergreen's product development and management activities. Reporting to Peter Cieszko,...

Ohio Workers' Comp Hires Managers.
October 9, 2006... The $18 billion Ohio Bureau of Workers' Compensation (BWC) has selected Barclays Global Investors, Russell and State Street to provide transition management services for the fund, confirmed Nancy Smeltzer, a spokeswoman for the fund. The...

Fairfax Interviews Int'l Equity Managers.
October 9, 2006... The investment committee of the $1.6 billion Educational Employees' Supplementary Retirement System of Fairfax County heard presentations from three international value equity managers. Alliance Bernstein, Acadian Asset Management, Pzena...

Detroit Guns and Hoses Hires for Equity.
October 9, 2006... The City of Detroit Police and Fire Retirement System has hired two equity managers, confirmed Walter Stampor, executive secretary at the fund. Both Munros Capital and Evergreen were hired to oversee $50 million each in international...

Franklin Templeton's Hasenstab Explores Bond Opportunities Worldwide.
October 9, 2006... For Michael Hasenstab, all the world's a stage-or at least most of it-especially if you're combing it for investment opportunities based upon interest rate trends, currency upgrades or sovereign credit changes. Hasenstab, VP, portfolio...

Odds & Ends.
October 9, 2006... *Legg Mason has appointed Donald Froude managing director and head of U.S. distribution, where he will be responsible for the group's overall management throughout the U.S. Prior to joining Legg Mason, Froude was president of intermediary...

We Couldn't Make This Up If We Tried!
October 9, 2006... Chapman's in Trouble Again Nathan Chapman has been a very busy man. He was previously convicted of 23 counts of fraud and falsifying tax returns stemming from using $5 million of the Maryland State Retirement & Pension System's assets to...

Possible Switch for Orange County?
October 16, 2006... The $6.5 billion Orange County Employees' Retirement System (OCERS) could soon see an outflow of assets from its defined-benefit plan. The Rancho Santa Margarita City Council was set to vote on an ordinance that, if approved, would result...

South Carolina R.S. To Go International?
October 16, 2006... The $26.5 billion South Carolina Retirement System could soon make a leap into overseas investing, pending the passage of a state constitutional amendment. In order to diversify and help curb issues of underfunding, a proposed law has been...

Alaska Board Plots Duo Searches.
October 16, 2006... The Alaska Retirement Management Board (ARMB) will be quite busy in the upcoming months, as it launches searches for large-cap value and long/short equity managers. The ARMB oversees more than $14 billion in retirement fund assets. ...

Shakeup In Illinois Continues: New Indictments Surrounding Kickbacks at Teachers' Fund.
October 16, 2006... Charges have been filed against yet another high-ranking official in connection with the Illinois Teachers' Retirement System's (TRS) kickback scandal. In January, the $36.5 billion fund filed a civil suit against former trustee Stuart...

Green Mountain State Eyes Portable Alpha.
October 16, 2006... The Vermont Pension and Investment Committee (VPIC) was educated on portable alpha and overlay strategies at its Oct. 10 meeting, confirmed David Minot, director of finance and investment. The committee oversees the $1.4 billion State...

Kentucky R.S. Real Estate Saga Continues.
October 16, 2006... Officials at the $15.2 billion Kentucky Retirement System (KRS) have filed an insurance claim of over $600,000 alleging that two former executives breached their fiduciary duties and took part in a shady real estate deal. The property in...

CalPERS Adds to AIM Program.
October 16, 2006... The $219 billion California Public Employees' Retirement System (CalPERS) has announced the creation of a new $500 million investment vehicle that will be managed by Hamilton Lane. The new vehicle is part of the second phase of CalPERS'...

Mass. Fund Hunts For Managers.
October 16, 2006... The board of the $693 million Middlesex Retirement System has launched searches for a $12.5 million international fixed-income manager, a $21 million emerging markets equity manager and a $12.5 million emerging markets debt manager. ...

Plymouth Looks for Mid-Cap Managers.
October 16, 2006... The board of the $580 million Plymouth County Retirement Board has launched searches for a mid-cap value manager and a mid-cap growth manager. According to the RFPs, the value portfolio will be approximately $55 million, while the growth...

Oregon Seeks Alternatives Advisor.
October 16, 2006... The Oregon Investment Council (OIC) has issued an RFP for an alternative equity investment advisor on behalf of the $55.3 billion Oregon Public Employees' Retirement Fund. According to the RFP, the council wants someone to assist with...

Mass. PRIM Seeks Alternatives Consultant.
October 16, 2006... The Massachusetts Pension Reserves Investment Management Board (PRIM) has issued an RFP for an alternative investments consultant to help PRIM manage the $43.1 billion Pension Reserves Investment Management Trust Fund (PRIT). According to...

San Fran Approves Investments.
October 16, 2006... The board of the $15.2 billion San Francisco Employees' Retirement System (SFERS) approved two alternative investments at a recent board meeting, said a source at the fund. On Oct. 10, the board discussed investments of up to $15 million in...

LACERA Doles Out $1B in Mandates.
October 16, 2006... The $32 billion Los Angeles County Employees' Retirement Association (LACERA) has hired firms in its search for domestic equity enhanced index managers. Juan Almaguer, principal investment officer with the plan, said that LACERA has...

INVESCO Applies Hypotheses and Research to Global TAA Strategy.
October 16, 2006... To Scott Wolle, it's all relative. That, at least, is the way he approaches investing as portfolio manager and investment team leader of INVESCO's multiple asset strategies team and its Global Tactical Asset Allocation (GTAA) strategy. ...

Odds & Ends.
October 16, 2006... *Brett Hazen has joined Segal Advisors as a VP in the firm's Cleveland office. Prior to joining Segal, Hazen was a managing consultant with Portfolio Analytics, where he was responsible for the firm's consulting operation and business...

NJ Makes Faulty Projections.
October 23, 2006... The $74 billion New Jersey Public Employees' Retirement System is going to need almost $100 million more than expected next year. Due not to failed investments or scandal, but instead for faulty projections, the system will need $849...

Oklahoma Police Look at Buyouts.
October 23, 2006... The $1.3 billion Oklahoma Police Pension and Retirement System (OPPRS) is taking a close look at small market buyout investments and could potentially make an allocation to the asset class. According to the agenda for the plan's Oct. 18...

INVESCO Plots New Sales Initiative.
October 23, 2006... INVESCO is set to revamp institutional sales efforts-a move that will lead to the elimination of approximately 16 positions, confirmed Bill Hensel, spokesman for the firm. He explained that this is part of a drive to combine the firm's...

CalPERS to Invest In South Korea?
October 23, 2006... The $219 billion California Public Employees' Retirement System (CalPERS) could soon be putting 1.2%-or $2.5 billion-of its assets into South Korea, according to published reports. Reportedly, Jason Park, president of Jason Investment,...

ICERS Contemplates Consultant Search.
October 23, 2006... The board of the $308 million Imperial County Employees' Retirement System (ICERS) is considering a search for a new investment consultant, according to the agenda from the board's Oct. 18 meeting. According to minutes from ICERS' Sept. 20...

Rocky Mountain Fund Seeks PE Advisor.
October 23, 2006... The $3.1 billion Fire and Police Pension Association of Colorado (FPPA) has launched a search for an investment advisor to help the plan manage the private equity portion of its portfolio on a discretionary basis. According to the RFP, the...

Mass. Plan Launches Equity Search.
October 23, 2006... The $49 million Massachusetts Housing Finance Agency (MHFA) Retirement System is on the prowl for an emerging markets equity manager, said John Doherty, executive secretary at the plan. "We're looking to diversify the portfolio," he said....

COPERS Searches for Int'l Small-Cap.
October 23, 2006... The $1.3 billion City of Phoenix Employees' Retirement System (COPERS) has issued an RFP for an international small-cap equity manager to oversee an $83 million account. According to the document, the investment vehicle proposed must...

Watertown Kicks Off Consultant Search.
October 23, 2006... The board of the $83 million Watertown Contributory Retirement System has issued an RFP for an investment consultant-a move which could potentially unseat the incumbent Wainwright Investment Counsel. Wainwright has served as general...

Norfolk County Issues Consultant RFP.
October 23, 2006... The $520 million Norfolk County Retirement Board has launched a search for an investment consultant. According to Nelson's MarketPlaceWeb.com, Wainwright Investment Counsel currently serves as the fund's investment advisor. John...

Ill. Prosecutors Blame Political Fundraiser for Failed Pension Merger.
October 23, 2006... The scandal that has plagued the $36.5 billion Illinois Teachers' Retirement System (TRS) seems to know no end. The most recent allegations-made by federal prosecutors-is that Antoin Rezko, former top fundraiser and advisor to governor Rod...

Orange County Loses Assets to CalPERS.
October 23, 2006... The $6.5 billion Orange County Retirement System will be short a few assets following a recent decision by the City Council of Rancho Santa Margarita (RSM) to move forward with plans to move its employees from the fund to the $219 billion...

Loomis Sayles Applies Teamwork, Research to Large-Cap Value Strategy.
October 23, 2006... When looking at the style parameters of large-cap equity, value is the place to be. Just ask Warren Koontz, VP at Loomis, Sayles & Company and portfolio manager in the firm's large-cap value group. "If you go back in history and look at the...

Odds & Ends.
October 23, 2006... *Goldman Sachs Group has promoted Thomas Montag to global head of its equity and debt securities trading businesses, effective Jan. 1. Montag is currently the co-president of the company's Japan operations. Montag joined Goldman Sachs in 1985,...

A Posthumous Clean Slate.
October 23, 2006... This may be a bit taboo for some of our loyal IMW reader's, but it's ridiculous, and thus, here it is. A federal judge in Houston has completely wiped away the jury's verdict that convicted Ken Lay of numerous counts of fraud and...

Funds Push for Emerging Managers.
October 30, 2006... The New America Alliance (NAA), along with Christopher Ailman, CIO of the California State Teachers' Retirement System and William Thompson, comptroller for the city of New York, announced a joint plan to increase emerging managers' roles in...

CalPERS to Refresh Real Estate Consultant Pool.
October 30, 2006... The $219 billion California Public Employees' Retirement System (CalPERS) has issued an RFP for real estate consultants to refresh its spring-fed special projects pool. The plan routinely uses consultants to assist with manager searches,...

Scottish Widows Rolls Out New Product.
October 30, 2006... Scottish Widows Investment Partnership (SWIP) is forging ahead with its plans to become a major player in the U.S. market. Last week, the firm told IMW that it has launched a new commingled emerging markets fund for U.S. institutional...

Bonds Brought Better Returns in 3Q06.
October 30, 2006... Institutional investors fared well last quarter, by upping the ante on fixed-income investments, according to data compiled by the Northern Trust Company. The Northern Trust Universe represents the performance results of more than 300...

Virginia Plan Issues Consultant RFP.
October 30, 2006... The $1.8 billion Educational Employees' Supplementary Retirement System of Fairfax County has issued an RFP for an investment consultant, which could potentially replace incumbent Mercer Investment Consulting. Alan Belstock, executive...

SDCERA Considers Legal Action.
October 30, 2006... The $7.7 billion San Diego County Employees' Retirement Association (SDCERA) is considering taking legal action as the result of an investment with beleaguered hedge fund Amaranth Advisors, according to local reports. Last year, the plan...

Houston Cops Make Asset Changes.
October 30, 2006... The board of the $2.2 billion Houston Police Officers' Pension System (HPOPS) made several changes at its September meeting, including a reallocation of the U.S. equity portfolio, a discussion about a possible search for a new real estate...

St. Louis System Picks Hedge Fund Finalists.
October 30, 2006... The $481 million City of St. Louis Employees' Retirement System has narrowed its search for hedge fund-of-funds managers down to a list of three finalists-Cadogen Management, Robeco-Sage Capital Management, and Union Bancaire Privee Asset...

SDCERS Hires Firms, Eyes Consultant.
October 30, 2006... The investment committee of the $3.1 billion San Diego City Employees' Retirement System (SDCERS) presented a recommendation to make a new real estate allocation at the general board's Oct. 20 meeting. According to the agenda, the...

OCERS Approves PE Commitments.
October 30, 2006... The board of the $6.5 billion Orange County Employees' Retirement System (OCERS) approved several new private equity fund-of-funds hires at its Oct. 23 meeting, confirmed Keith Bozarth, the plan's CEO. The board approved commitments to...

Florida Plan Hires for International Equity.
October 30, 2006... The $474 million City of Lakeland Employees' Pension Board has selected Julius Baer Investment Management to oversee a $25 million international growth equity account. According to the plan's Web site, the search was started to both...

Kansas Plan Seeks Two New Analysts.
October 30, 2006... The $12 billion Kansas Public Employees' Retirement System (KPERS) is looking for two new investment analysts to focus on the equity and private markets. According to the KPERS Web site, the equity analyst would be responsible for...

The SEC's Last Shot at Hedge Fund Regulation? The Commission will get another chance, but sources say another Amaranth could bring Congress into the mix.
October 30, 2006... Many eyes in Washington and on Wall Street are on the upcoming elections, but hedge funds have their antennae tuned to the Securities and Exchange Commission, according to IMW's sister publication, Investment Dealers' Digest. That's because the...

Research and Bottom-Up Selection Winning Combo for Scottish Widows.
October 30, 2006... Things have been looking good for the Pan European Equities team at Scottish Widows Investment Partnership (SWIP). Need proof? Over the last year, the firm's large-cap product has been up 21.6% against the MSCI Europe Index. ...

Odds & Ends.
October 30, 2006... *Credit Suisse has appointed Jeffrey Halpern as head of market risk management for multi-manager portfolios for alternative investments. Halpern joins the firm from Moore Capital Management, where he was the head of risk management. ...

Correction.(Correction notice)
October 30, 2006... In the Oct. 23 issue of IMW, the article "Loomis Sayles Applies Teamwork, Research to Large-Cap Value Strategy" incorrectly names the firm's headquarters. The firm is based in Boston. (c) 2006 Investment Management Weekly and SourceMedia,...

We Couldn't Make This Up If We Tried!
October 30, 2006... What are the Stats on Going to Jail? China's top statistician, Qiu Xiaohua, has been fired from his job as director of the Chinese National Bureau of Statistics. Why was he fired, you ask? Because he illegally withdrew about $6.3 million...