Investment Management Weekly articles from September 2003

Investment Management Weekly archives from September 2003

At Press Time.
September 1, 2003... International Fare EAFE (Europe Australia Far East) value products retained their top position in international equities, with $237.8 billion in assets a 21% share versus other sector products, according to Nelson's 2003 Institutional...

DeAM, MFS Out the Door in Idaho.
September 1, 2003... The $6.6 billion Idaho Public Employees' Retirement System has terminated Deutsche Asset Management (DeAM) from a $200 million global equiyt account, as well as MFS Investment Management from a $175 domestic equity mandate-moves that could lead...

SSgA on Watch After Index Pro Bolts.
September 1, 2003... The $21.5 billion Missouri Public School Retirement System has placed State Street Global Advisors (SSgA) on watch on its $775 million enhanced S&P 500 index account. Chief Investment Officer, Craig Husting said the firm was placed on watch for...

Survey: Consultant Usage Still Strong.
September 1, 2003... Over 19,000 U.S.-based plan sponsors with at least $10 million in total assets and 4,966 plan sponsors with over $100 million, the 2003 Nelson Pension Fund Consultant Survey concluded that more than half of all public plan sponsors, Taft...

Memphis Pins Down Fixed-Income Search.
September 1, 2003... The $1.8 billion Memphis City Retirement System has recessitated an on-again off-again search for an index manager, Senior Fund Officer Joseph Lee said (See IMW, 5/30/03). After a series of stoppages related to concerns over the plan's...

Austin Eyes Real Estate; New Director.
September 1, 2003... The $1.2 billion City of Austin Employees' Retirement System is about to launch its first real estate search and has appointed a new executive director. Rhonda Plentl, interim pension director said that the plan would initiate a search for...

Ohio Plan Seeks Transition Manager.
September 1, 2003... The $650 million Ohio State Highway Patrol Retirement System has launched a search for a transition manager to oversee between $40 million and $50 million of a large-cap value account. Richard Curtis, executive director of the...

Miami Plan Picks Index Finalists.
September 1, 2003... The roughly $1 billion Miami Firefighters & Police Retirement Trust has selected Barclays Global Investors (BGI) and Intech as finalists in a search for an enhanced S&P 500 index, with mandate of between $100 million and $150 million. ...

Wells Fargo to Acquire Value Manager.
September 1, 2003... Wells Fargo & Company has entered into a definitive agreement to acquire Benson Associates, a Portland, Ore.-based value manager. Benson, with approximately $1.3 billion in assets under management, will become part of the Wells Capital...

LA 911 Rehires Gabriel/Roeder/Smith.
September 1, 2003... Gabriel/Roeder/Smith & Co. has been chosen by the Los Angeles Fire & Police Pension fund to serve as the $12 billion plan's new actuarial consultant, Employee Benefits Officer Edward Griffiths said. GRS beat out finalists Segal Advisors...

Illinois Fund Snags New Treasurer.
September 1, 2003... The approximately $46 million City of Highland Park (Ill.) named Ronald Zweig as its treasurer, said Highland Park Mayor Michael Belsky. As treasurer, Zweig will play an integral role in the city's fire and police pension funds, oversee...

ACERA Int'l Search Begins.
September 1, 2003... The $3.4 billion Alameda County Employees' Retirement Association has formally launched a search for a value-oriented international-equity manager, ACERA Chief Investment Officer Betty Tse said (See IMW, 8/18/03). Although the investment...

UNC: One-Stop Shop for Education, Asset Management.
September 1, 2003... The University of North Carolina at Chapel Hill's decision to move into asset management has been met with criticism by some industry consultants. The newly formed UNC Management Co. will oversee the university's $1.1 billion endowment, as...

SCM's Tedford Finds Success in Short-Term Bonds.
September 1, 2003... During the turbulent bond market, some money managers found themselves wedged between a rock and a hard place, but Bill Tedford, director of fixed-income for Stephens Capital Management (SCM) said that his firm is strategically positioned to...

Advent Hires Investor Relations Partner.
September 1, 2003... Advent International has hired Beverly Berman as a partner to spearhead its investor relations and fund marketing activities in North America, said Beth McGoldrick, a spokeswoman for the firm. Berman, who joined the firm on Aug. 26, will...

fAt Press Time.
September 8, 2003... PBGC In Financial Crisis In a Sept. 4 statement to the (Committee on Education and The Workforce) U.S. House of Representatives, Steven Kandarian, executive director of the Pension Benefit Guaranty Corp. said the organization's financial...

Texas to Launch Search, Review Managers.
September 8, 2003... The $20 billion Texas Permanent School Fund is gearing up to launch a search for a manager to oversee an indexed international equity allocation of an undetermined size. The plan will also review its internal and external manager lineup, a move...

Sources: North Carolina Bolster Real Estate.
September 8, 2003... The $54 billion North Carolina Retirement System (NCRS), could be beefing its allocations in to real estate, according to sources familiar with the system. The plan already maintains investments in the asset class, but could seek to...

Court: Big Blue Hybrid Plan Violates ERISA.
September 8, 2003... A federal district court has ruled that International Business Machines Corp. illegally discriminated against older workers when it converted its pension plan to a cash-balance design-a decision that, if allowed to stand, finds all hybrid...

Sanford Cops Eye Large-Cap Growth.
September 8, 2003... The roughly $29 million Sanford Police Officers' Retirement System has launched a search for a manager to oversee a $5 million large-cap growth account. The search could potentially replace Freedom Capital Manage-ment, which has had...

Alabama Muni Hunts For Bond Manager.
September 8, 2003... The $23 million City of Anniston Police and Fire Retirement System has launched a search for a manager to oversee half of the plan's assets in a fixed-income account. Plan Secretary Alan Atkinson, said that the move to launch the search...

Va. Plan Hires New Consultant.
September 8, 2003... The $ 650 million Fairfax County Uniformed Retirement System has hired New England Pension Consultants as its new consultant, replacing CRA RogersCasey. "Their contracts were up a year ago," said Jeff Willison, investment officer, of CRA....

International Paper Hires Mid-Cap Mgrs.
September 8, 2003... The $6 billion International Paper has extended its mid-cap manager line up with the hires of Pzena Investment Management, Barclays Global Investors and Rice Hall James & Associates to each manage $40 million. Robert Hunkeler, the...

Phillips Succeeds Main at SWIP.
September 8, 2003... Edinburgh, Scotland-based money manager Scottish Widows Investment Partnership (SWIP) has appointed Chris Phillips as its new CEO. Phillips, who will join the firm in December, succeeds Bill Main, who retires at the end of the year. Main...

Real Estate Firm Promotes Staff.
September 8, 2003... Cohen & Steers-the New York-based investment management firm, which specializes in REITS-has promoted five of its senior level executives to new positions. Joseph Harvey, previously a senior VP and director of research was promoted to...

Ohio Plan Hires Three.
September 8, 2003... The $7.2 billion Ohio Police & Fire Pension Fund has hired Causeway Capital Management and Fidelity Management Trust Co. to split approximately $225 million in international equity investments, as well as Banc One Investment Advisors to manage...

Gartmore Appoints New Senior VP.
September 8, 2003... Richard Hein, former senior VP in the investment consulting division at UBS Paine Webber, has been hired as the new senior VP of Gartmore Global Investments' separately managed accounts business. Hein, who will report to Gartmore's Senior...

AIMR Readies Best-Practice Guidelines.
September 8, 2003... The Association for Investment Management and Research's global taskforce on corporate governance met for the first time Aug. 21 to get started on new best-practice guidelines for its 65,000 members. The taskforce, which is made up of...

Investors Snap Up Pricey REIT Funds.
September 8, 2003... The real estate sector is being pegged as a pullback candidate, but that hasn't stopped new money from pouring into these funds. Real estate funds have quietly built a strong track record, having outpaced all domestic equity funds over the...

CIO David Katz On Investing the Matrix Way.
September 8, 2003... About a year ago, Chief Investment Officer David Katz and his team at Matrix Asset Advisors embarked on a more concerted effort to court the institutional investor marketplace. With assets under management in the range of $900 million, the...

At Press Time.
September 15, 2003... Pa. Auditor Sues Two The Pennsylvania State Commonwealth Court heard arguments by Auditor General Robert Casey last week regarding his suit against the state's Public School Employees' Retirement System and State Employees' Retirement...

LSERS Launches Search, Fortis Close to Exit.
September 15, 2003... The $1.4 billion Louisiana School Employees' Retirement System has launched a $100 million large-cap search that would likely replace Fortis Investments, the money manager formerly known as Harbor Capital Management. "The board is doing...

Connecticut Issues Request For Qualifications.
September 15, 2003... The $18 billion Office of the Treasure of the State of Connecticut has issued a request for qualifications (RFQ) for a manager to oversee a fund-of-funds manager program. Details of the search could not be determined as Bernard Kavaler,...

Industry Experts: Diversification Is Key In 2004.
September 15, 2003... Investment professionals are forecasting a continued emphasis on diversification and an increasing interest in non-traditional asset classes for the upcoming year. "The diversification theme continues to make sense. For those investors...

San Antonio 911 Drops NACM.
September 15, 2003... The $1.3 billion San Antonio Fire & Police Pension Fund terminated Nicholas-Applegate Capital Management from a $60 million Europe, Australasia and Far East equity (EAFE) account and could possibly initiate a search for a replacement manager....

CalSTRS Extends Private Equity Goal.
September 15, 2003... The California State Teachers Retirement System (CalSTRS) will slow the pace of an ambitious private equity program approved by the fund's investment committee in July. CalSTRS plans to nearly double the size of its $4.7 billion private...

DPSRS Director To Resign.
September 15, 2003... David Stella, executive director for the $2.1 billion Denver Public School Retirement System (DPSRS), will resign from the plan at the end of the year to join the Wisconsin Department of Employee Trust Funds. Stella, who had been with DPSRS...

Conn. Fund Changes Managers, Style.
September 15, 2003... The $270 million Town of Greenwich Retirement System has severed ties with Frank Russell Co.-the plan's manager-of-managers. "Frank Russell had the business since 1984," said Peter Tesei, chairman of the Town of Greenwich's finance board....

Increased Scrutiny Continues for Ohio State.
September 15, 2003... Allegations of fraud and non-ethical practices continue to plague the state of Ohio's pension funds, with recent accusations alleging two trustees abused travel policies at the Ohio Police & Fireman's Pension Fund. Trustees David Harker...

Fidelity Bolsters West Coast Team.
September 15, 2003... Fidelity Management Trust has hired Robert Strachan and Eric Winterhalter as senior VPs in an effort to boost its West Coast relationship management and consultant relations teams. Strachan, most recently VP of client services and marketing...

Lehman Brothers Pro Debuts PE Firm.
September 15, 2003... Adam Smith, formerly with the mergers and acquisitions group at Lehman Brothers, has created a private equity firm Circle Peak Capital Management. The firm focuses on small-cap companies in the financial and consumer services sectors. ...

Equity Products See Stronger Cash Inflows.
September 15, 2003... Domestic equity products may have bounced back, according to Casey, Quirk & Acito (CQA) and InvestorForce's second quarter institutional product review. Judging from the information volunteered by various institutional investors, CQA...

VCs Look for Money; Investors May Balk.
September 15, 2003... The venture capital community may be ready to invest again, but convincing investors to fork over the cash won't be easy. The conventional wisdom is that VCs are flush because they've been reluctant to invest since the crash of 2000. But...

Boston Partners' Rosenbluth Leverages All Caps' Agility.
September 15, 2003... As portfolio manager of Boston Partners' All-Cap Value Fund, Harry Rosenbluth enjoys the freedom of not being restricted to any particular market cap sector. "The fundamental advantage to the all-cap investor is the larger opportunity set....

At Press Time.
September 22, 2003... Economic Signs Improve The Conference Board's Composite Index of Leading Economic Indicators increased for the fourth straight month in August, rising 0.4%, the board reported last week. With the August increase, the level now stands...

Big Apple Puts Close to $1B Up for Grabs.
September 22, 2003... Three divisions of the $94 billion New York City Retirement System have arrived at mandate sizes for large-cap growth U.S. equity searches, which are scheduled to begin any moment, NYC spokeswoman Nicole Lise said. The $16 billion New York...

MSIB Contemplates Alternatives Increase.
September 22, 2003... In a move that could generate searches, the $43 billion Minnesota State Board of Investments (MSBI) has recommended the inclusion of a 12% allocation to alternative investments for the Minnesota Teachers Retirement Association (MTRA), according...

San Bernardino Launches Mega Searches.
September 22, 2003... The $3.2 billion San Bernardino County Employees' Retirement Association has launched searches for a $150 million U.S. high-quality, high-yield fixed income manager, a $100 million U.S. high-yield fixed income manager and a $75 million emerging...

Maryland State Hires New CIO.
September 22, 2003... After undergoing a major overhaul in its executive lineup, the $27.1 billion Maryland State Retirement and Pension System has hired a chief investment officer, Maryland spokesman Joe Coale said. Steven Huber was selected from a pool of more...

Ohio 911 Trustee Resigns Amid Scandal.
September 22, 2003... The Ohio Police & Fire Pension Fund has launched a search for a new active firefighter trustee following the resignation of David Harker, OP&F spokeswoman Amy Hoiland said. The plan endured criticism from state lawmakers and retirees when...

Oechsle's Troubles Mount in Tulare.
September 22, 2003... The future of Oechsle International Advisors as a manager for the $700 million Tulare County Employees' Retirement Association has become even more uncertain, Tulare Senior Fund Officer David Kehler said. Oechsle, which manages a $54...

Sterling Heights Nears Hedge Fund Decision.
September 22, 2003... The board of the $90 million Sterling Heights General E.R.S. has pared a wide field of hedge fund manager candidates down to finalists Goldman Sachs and J.P. Morgan Chase, Sterling Heights Pension Administrator Rick Sanborn said. As many...

Bush Admin. Supports Contribution Increase.
September 22, 2003... The Bush Administration recently defended a proposal that would increase the contributions some companies would be required to make to defined benefit pension plans in the future. Speaking on behalf of the Bush Administration, Treasury...

Lehman Acquires Private Equity Firm.
September 22, 2003... Lehman Brothers acquired The Crossroads Group, a 55-person private equity investment manager in Dallas, for an undisclosed amount. The deal is expected to boost Lehman's global private equity franchise to approximately $7 billion in assets...

RockBridge Creates New Real Estate Fund.
September 22, 2003... RockBridge Capital has launched its RockBridge Real Estate Fund II in an effort to increase its $450 million in assets under management. "This strategy is a blend of mezzanine, value-added investments and high-yield fixed income,"...

Rise in Consultant Use Drives Consolidation, Specialization.
September 22, 2003... As the use of investment consultants by plan sponsors continues to increase, industry consolidation and increased specialization among many consulting firms is changing the way consultants do business, according to a new study by Cerulli...

Northern Trust's Rochford Salutes Public Funds' Stance on Grasso.
September 22, 2003... Kevin Rochford, the managing director of Northern Trust Global Investment Services' Institutional Group, said the departure last week of New York Stock Exchange Chairman Dick Grasso was proof that investors-particularly institutional...

At Press Time.
September 29, 2003... FASB Mulls Obligation Rules The Financial Accounting Standards Board (FASB) will begin a review of the rules that govern the way companies measure benefit obligations within cash-balance plans after it formally voted to add the issue to...

New Mexico Teachers Conduct $300M Search.
September 29, 2003... The $6.2 billion New Mexico Educational Retirement Board has launched a search for a $300 million high-yield fixed-income manager, Chief Investment Officer Frank Foy said. Foy explained that a high-yield fixed-income instrument would be a...

So. Cal Union Seeks $100M EAFE Manager.
September 29, 2003... The $3.5 billion Food & Commercial Workers Union of Southern California has launched a search for an EAFE (Europe and Australaisa, Far East) equity manager to oversee approximately $100 million of the plan's assets, Senior Fund Officer Joel...

Pension Leaders Call For Big Board Review.
September 29, 2003... A coalition of eight pension fund leaders from across the nation, representing approximately half a trillion in assets, met last week with board members of the New York Stock Exchange (NYSE) to take steps to improve its corporate governance and...

Vermont Studies Hedge Funds, Indexes.
September 29, 2003... The $1 billion Vermont State Teachers' Retirement System is receiving a crash course on market-neutral hedge funds and enhanced index investments, said David Minot, director of investments. Minot said that the fund had no immediate plans to...

L.A. Mulls Increase In Corp Governance.
September 29, 2003... The board of the $8.9 billion Los Angeles City Employees' Retirement System is investigating whether corporate governance can add alpha to the plan's assets, LACERS Chief Investment Officer Daniel Gallagher said. Last week the plan issued...

Austin Cops Add Hedge Fund, Small-Cap Mgrs.
September 29, 2003... The $262 million Austin Police Retirement Fund (APRS) has funded its first hedge fund investment, Senior Fund Officer Sampson Jordan said. Following board approval of a $5 million allocation to the aggressive investment sector, the plan...

Spitzer Chases Canary Copycats.
September 29, 2003... Investment firms should take notice that a broad and ongoing probe by New York State Attorney General Eliot Spitzer into possible illegal trading between hedge funds and mutual funds could result in a subpoena arriving at their doorstep. ...

Gabelli Hires New Senior Marketing VP.
September 29, 2003... Christopher Von Bargen has joined Gabelli Asset Management as a senior VP of marketing-a new position. Von Bargen will be in charge of institutional sales in the Southeast and will be based in Atlanta. He reports to Chief Operating Officer Doug...

Pennsylvania's Audit Dispute Continues.
September 29, 2003... The final decision on whether the Pennsylvania Public School Employees' Retirement System (PSERS) and the Pennsylvania State Employees' Retirement System (SERS) should open its doors to a state-conducted audit is still months down the line, as...

Guns & Hoses 2003.
September 29, 2003... Approximately 250 institutional money managers, consultants and police and fire fiduciaries showed up at the Hilton San Diego Resort, Sept. 14-17 to attend the Institute for International Research's 11th annual Guns & Hoses conference. IMW's...

Plan Sponsors Discuss Underfunding Issues.
September 29, 2003... Plan sponsors took varying stances on the issue of pension underfunding during the Sept. 15 panel discussion on "Potential Solutions to Plan Underfunding: What Options Are Being Pursued by Public Safety Plans Across the Country?" Kendall...

Panelists Advise: Use Consultants Wisely.
September 29, 2003... Plan sponsors urged their peers to make sure they were getting the most for their buck when using consultants during a session titled "Getting the Most from Your Consultants." "Most plans utilize consultants to assist with duties because...

Ratings Firm: Poor Governance Impacts Returns.
September 29, 2003... More evidence has emerged linking poor corporate governance with mediocre performance, which has companies looking for novel ways to leverage good governance practices in their communications with investors. A recent study from...

NYSE Appraises Governance, Trading.
September 29, 2003... The winds of change are sweeping the floor of the New York Stock Exchange, as federal regulators look to overhaul the world's biggest marketplace. In the wake of the scandal surrounding former Chairman Dick Grasso's forced resignation and...

RockBridge Capital's Ron Callentine Banks On Hospitality.
September 29, 2003... For institutional investors, real estate remains a hot ticket. During the first half of this year alone, industry figures reflect an increase in fund flow to real-estate vehicles such as REITs (real estate investment trusts) by more than 30%....