Investment Management Weekly articles from September 2004

Investment Management Weekly archives from September 2004

Pension Funds Dispute Terror Study.
September 6, 2004... Staff at public pension plans lambasted a report linking public funds with investments in terrorism. "Terrorism Investments of the 50 States," a Center for Security Policy report issued last month, stated public pension plans have sizeable...

Iowa Gears Up for Global Bond Search.
September 6, 2004... The $16.8 billion Iowa Public Employees' Retirement System is prepping to launch a search that could replace incumbent JPMorgan Fleming Asset Management on a $1.2 billion global core plus fixed-income account. Kathleen Comito, plan CIO,...

Louisiana Plans Contemplate Consolidation Pension Cost, Underfunding Prompts Study.
September 6, 2004... Legislators in Louisiana are considering a statewide consolidation of the retirement systems as a means to offset high cost and underfunding at retirement plans statewide. The proposed consolidation-which seeks to alleviate the pension...

Registered Hedge Fund Demand on the Rise.
September 6, 2004... The number of high-net-worth individuals rose sharply in 2003, a trend that represents a significant opportunity for asset managers offering registered hedge funds, according to a recently released white paper by Financial Research Corp. ...

Barnstable Eyes Real Estate, Int'l Equity.
September 6, 2004... The $304 million Barnstable County Retirement System has launched searches for a value-added private real estate manager and an international value equity manager. The mandates are $11 million and $25 million, respectively. Mark Zilenski,...

Mass MuniSearches for Large-CapGrowth.
September 6, 2004... The $92 million City of Lawrence Contributory Retire-ment System has issued an RFP for a manager to oversee a $12 million large-cap growth account. Details of the search were scant, as calls to Nancy Ross, retirement administrator, were...

MHFA Gets Passive.
September 6, 2004... The $44 million Massachusetts Housing Finance Agency (MHFA) will launch searches for managers to oversee three passive portfolios. Details of the potential searches were scant as John Doherty, plan administrator, was out of the office and...

Fresno County Hires Managers.
September 6, 2004... The $2 billion Fresno County Employees' Retirement System has hired the Trust Company of the West and INTECH to oversee $100 million in their respective concentrated large cap and large-cap equity accounts; and Artisan Partners and Kalmar...

Omaha 911 Hires for Large-Cap Value.
September 6, 2004... The $395 billion City of Omaha Police & Firefighter Retirement System has hired Brandywine Asset Management, DePrince Race & Zollo and Hotchkis & Wiley Capital Management as new managers for its large-cap value portfolio, said Carol Edbon,...

CRA RogersCasey Retains Philly Contract.
September 6, 2004... CRA RogersCasey has cemented a new contract agreement with the $5.4 billion Philadelphia Board of Pension & Retirement, after a halt in earlier negotiations, said Brian Glanz, investment officer. In April, the consultant was selected to...

Conn. Picks Manager For Emerging Program.
September 6, 2004... Connecticut Horizon Fund, an emerging-manager program, has hired the San Francisco-based Bivium Capital Partners for its manager-of managers program. The firm will oversee between 2.5% to 5% of the $20 billion Connecticut Retirement Plan &...

Northern Trust Adds Two PMs.
September 6, 2004... Northern Trust Global Investments hired Robin Kollannur and Donna Renaud as portfolio managers on its large-cap value equity team, said Guy Lawrence, a spokesman for the firm. Lawrence said the hires were not only to facilitate the...

Money Management Firm Adds New CFO.
September 6, 2004... Third Avenue Management (TAM) has hired Vincent Dugan as its new CFO and COO, said Jessica Perry, a spokeswoman for the firm. "Vincent is succeeding Michael Carney, who has retired after 15 years," said Perry. Dugan will be based in Third...

Colorado PERA Hires Investment Officer.
September 6, 2004... The Colorado Public Employees' Retirement Association selected Thomas Liddy as its director of Investment Operations, Katie Kaufmanis told IMW last week. He replaces Daryl Roberts who retired from the board at the end of August. Liddy...

UCal Searches for P.E. Consultant.
September 6, 2004... The Board of Regents for the University of California has issued an RFP for a private equity consultant, said Melvin Stanton, assistant treasurer. At present, Cambridge Associates is the board's adviser on the asset class. Stanton insists...

UCal Hunts for Investment Pro.
September 6, 2004... The University of California is looking to hire an investment officer to focus on the fund's absolute return strategies at its Oakland-based Treasurer's office, said Susan Rossi, spokeswoman for the Office of the Treasurer. It is unclear...

Fledgling Firm Begins Marketing Efforts.
September 6, 2004... The Santa Monica Calif.-based consulting firm Cliffwater LLC, has begun marketing itself as a specialist in the alternative asset marketplace. The fledgling consulting firm-which was up and running in July, is assembling a business...

Graham Backs Hedge Fund Investments.
September 6, 2004... Bruce Graham, president of the New York-based investment consultant Shields Associates, considers himself to be a long-time advocate of hedge funds. His "support" of the asset class stems not from its investment return potential, but for...

Odds & Ends.
September 6, 2004... St. John Health Care Center selected The Northern Trust Co. to manage $14 million of foundation money in an enhanced cash and bond portfolio investment strategy offering. Charles Schwab Investment Management has hired Vivienne Hsu as...

Task Force Softens Independent Research.
September 13, 2004... A survey conducted by Investorside Research Association indicates that independent research firms have experienced reductions in their commission payments from money management firms as a result of the Securities and Exchange Commission's (SEC)...

CalPERS Hit With Transparency Lawsuit.
September 13, 2004... Corporate governance watchdog California Public Employees' Retirement System (CalPERS) found itself on the other side of the fence last week when it was hit with a lawsuit asking it to reveal management fees paid to its venture equity and hedge...

Terror Investment Report Sparks Debate Or Does It?
September 13, 2004... Frank Gaffney, president of the Washington-based, non-partisan, not-forprofit Center for Security Policy, responded to criticisms levied against its "Terror Investments of the 50 States" report, which linked 100 of the nation's top pension...

Plymouth Town Searches for Large-Cap: Performance Issues May Be the Issue.
September 13, 2004... The $81 million Plymouth Town Contributory Retirement System is gearing up to launch a search for a large-cap core equity manager to oversee $15 million, said Carol Tam the plan's consultant at Segal Advisors. Tam declined to discuss...

Port Authority Plan Seeks Consultant.
September 13, 2004... The $288 million Massachusetts Port Authority Employees' Retirement System has issued an RFP for an investment consultant. Details of the search were scant, as calls to Irene Moran, retirement director, were not returned. The...

Brockton Embarks on Consultant Search.
September 13, 2004... The City of Brockton Retirement System has launched a search for an investment consultant, a move that could potentially unseat incumbent, Wainwright Investment Counsel. Harold Hannah, executive director for the $208 million retirement...

Austin Cops Study Real Estate, Energy.
September 13, 2004... The $310 million Austin Police Retirement System is being educated on real estate and investments in the energy sector, as a means to diversify the portfolio said Sampson Jordan, plan administrator. Jordan explained that the plan already...

Indiana PERF Shelves Hedge Fund Talk.
September 13, 2004... The Indiana Public Employees' Retirement Fund has closed the door on its consideration of hedge fund investments. The plan, which reportedly began studying the asset class earlier this year, shelved the prospect during an investment committee...

Oklahoma Law Nixes Bank of Ireland.
September 13, 2004... The $500 million Oklahoma Law Enforcement Retirement System will replace Bank of Ireland Asset Management on a $50 million international-equity mandate. Lawrence McCullock, executive director, explained that the board opted for a strategy...

Fixed-Income Shop Lures Marketing Pro.
September 13, 2004... The Carmel, Ind.-based 40|86 Advisors, Inc. has hired Brian Hamel as the director of marketing, said Cindy Stoller, a spokeswoman for the firm. He replaces Michael Hoover former interim director of marketing. Stoller said Hoover left the firm...

JPMorgan Fleming Loses Marketing Pro.
September 13, 2004... JPMorgan Fleming Asset Management has appointed Shaka Rasheed as VP of institutional marketing, said Gabrielle Gagliard, a spokeswoman for the money manager. Rasheed stepped into the position following the departure of Brenda Walker, who...

South Dakota Fire Plan Hires Sawgrass.
September 13, 2004... The $60 million Sioux Falls Firefighters' Pension Fund has hired Sawgrass Asset Management to manage a large-cap growth account worth $8 million. The firm replaces AllianceBernstein Institutional Investment Management, which the fund terminated...

Endowment Veteran Opens Alts Shop: New Alternatives Firm on the Block.
September 13, 2004... Endowment veteran Jason Yoder, has launched is own investment management firm-Tuckerbrook Alternative Investments-focusing on the alternative investment marketplace. Yoder, who prior to launching the firm, worked as investment director for...

Stephens Acquires Small-Cap Growth Team.
September 13, 2004... Stephens Inc.-a Little Rock, Ark.-based investment management, investment bank and brokerage firm-has expanded its offerings with the acquisition of the AIM Small Cap Growth Fund, previously managed by portfolio managers at Amvescap. Ryan...

Franklin Advisers' Takaha Touts High Yield.
September 13, 2004... Eric Takaha, director of high yield investments at Franklin Advisers, has an optimistic appraisal for high yield. Despite the low interest-rate environment, Takaha asserts that high yield investments have proven to be good opportunities. ...

Odds & Ends.
September 13, 2004... *Invesco Funds Group Inc. and AIM Management Group reached an agreement with the Attorney Generals of Colorado and New York, as well as the SEC resolving civil enforcement action and market-timing investigations. Both will be fined for a total...

AIMA Floats Exemption for Non-U.S. Hedge Funds.
September 20, 2004... The Alternative Investment Management Association has submitted a request to the Securities and Exchange Commission asking that non-U.S. hedge funds remain exempt from registering under the Investment Advisor Act of 1940. The London-based...

Beantown Plan Rolls Out Fixed-Income Search.
September 20, 2004... The $3.2 billion Boston Retirement System is searching for a core fixed-income manager to oversee a $150 million portfolio. Calls placed to Executive Director Richard Tierney, were not immediately returned. However, according to a document...

CalPERS Disposes of Watch List Practices...
September 20, 2004... The California Public Employees' Retirement System (CalPERS) is changing the way it deals with the retention of its external money managers, said Brad Pacheco, spokesman for the $166 billion fund. At the behest of an internal staffer, the...

...Readies Disney CEO Shortlist.
September 20, 2004... CalPERS-as first reported on IMW's Web site, www.imweekly.com (9/15/04)-is presenting the board members of Walt Disney Co. with its own shortlist of candidates to replace beleaguered CEO Michael Eisner. Brad Pacheco, plan spokesman, said...

Fla. Plan Scouts Large-Cap Core.
September 20, 2004... The Sanibel General Employees' Retirement System is in the market for a large-cap core manager to oversee a mandate worth $2.5 million. The $6.5 million system-based in Lee County, Fla.-issued an RFP that might unseat an incumbent manager. ...

Massachusetts Fund Eyes Large-Cap Value.
September 20, 2004... The $45 million Shrewsbury Contributory Retirement Board is searching for a large-cap value manager to oversee a mandate worth $6 million. Mary Thompson, trustee at the board, referred inquiries to Gregory McNeillie, senior VP at Dahab...

Sacramento County Hires New CEO.
September 20, 2004... The $3 billion Sacramento County Employees' Retirement System has named Richard Stensrud as its new CEO, according to sources familiar with the plan. His appointment replaces retiring CEO John Descamp. Stensrud was most recently the...

SWIB Hires Deputy Executive Director.
September 20, 2004... The State of Wisconsin Investment Board (SWIB)-the entity which oversee the investments for the $63.8 billion Wisconsin Retirement System Trust Fund-has hired Gail Hanson as its new deputy executive director, said Vickie Hearing board...

Mass. Plan Adds Intl. Small-Cap, TIPS.
September 20, 2004... The Plymouth County Retirement Board will hire The Boston Co. Asset Management for a $12 to $15 million international small-cap mandate and Institutional Research & Management for a $20 million Treasury inflation protected security account. The...

NTGI Gets New Institutional Sales Pro.
September 20, 2004... Bob Gray has joined Northern Trust Global Investments (NTGI) as director of U.S. Institutional Sales and Consultant Relations, said officials at the firm. Gray joins from Strong Capital Management where he worked in the institutional sales...

RCM Boosts Large-Cap Team with Hire.
September 20, 2004... RCM-in an effort to enhance the capabilities of its large-cap portfolio-has hired Raphael "Ray" Edelman as its new director and senior portfolio manager. Edelman, who was most recently a senior VP at Alliance Capital Management, will join...

Correction/Clarification.
September 20, 2004... IMW's Sept. 13 story titled "Stephens Acquires Small-Cap Growth Team," was incorrect. The firm did not acquire the AIM fund, but hired four individuals that ran the AIM Small-Cap Growth strategy. Also, Curt Bradbury's title was...

AMG Acquires Growth Money Manager.
September 20, 2004... TimesSquare Capital Management (TSCM) and Affiliated Managers Group, Inc. (AMG) have entered into an agreement to acquire the growth equity division of TSCM. The acquired growth business will then operate through a new firm, TimesSquare...

Industry Pros Talk Fall Outlook.
September 20, 2004... A cross-section of the investment-management industry lent insight on the various investment asset classes and prognosticated on the near-term future of the stock market during the Millennium Media Consulting's Fall 2004 Market Outlook &...

Hollis: Performance is Selling Point for Emerging Managers.
September 20, 2004... Being a small and unknown firm can be tough business for an investment manager. However, Lester Hollis president and CEO of Bivium Capital Partners-a San Francisco-based manager-of-managers for the emerging manager space-believes that...

Odds & Ends.
September 20, 2004... *Babson Capital Management has appointed Donald Hill as its new managing director of the institutional sales group. Hill joins from Putnam Investments where he was senior VP. In his newly created role at Babson, Hill will focus on the corporate...

Putnam Tries to Make Amends.
September 27, 2004... In an effort to get back in California's good graces, Putnam Investments will begin disclosing the aggregate pay of fund management teams. This new disclosure policy resulted from an agreement with California state officials that would allow...

Study: Real Estate Allocations to Triple: Performance is the Selling Point For Plan Sponsors.
September 27, 2004... The real estate investment universe could find itself ballooning to three-times its current size over the next decade, as pension funds continue to increase allocations to the asset class, according to predictions listed in a report-"A Sea of...

City of Worcester Unrolls Multiple Searches.
September 27, 2004... The City of Worcester Contributory Retirement System, with roughly $570 million in assets, has rolled out searches for domestic and international small-cap and real estate managers, said James DelSignore, chairman and investment board member...

NACM's Emerging Market Team Scatters: Lead PM Bolts to London.
September 27, 2004... Andrew Beal, lead portfolio manager for Nicholas-Applegate Capital Management's emerging-market strategy, is relocating to London where he will maintain day-to-day oversight of the $65 million portfolio. Sue Hunter, spokeswoman for NACM,...

Swampscott Eyes Private Equity.
September 27, 2004... The $27 million Swampscott Contributory Retirement System is making its first foray into the alternative investment universe by way of private equity, said Robert DiTesa, retirement administrator for the Massachusetts-based fund. DiTesa...

Plymouth County Hunts for Small-Cap.
September 27, 2004... The $475 million Plymouth County Retirement Association has issued an RFP for a manager to oversee a $25 million small-cap growth account, according to a document obtained by IMW. Further details of the search were scant, as John McLellan,...

Real Estate In Store For Cambridge.
September 27, 2004... The $500 million Cambridge Retirement Board is searching for a private real estate manager, said executive director Anne LeDuc last week. The search was spawned to fulfill the fund's allocation in the asset class, she explained. "Our...

Emerging Markets Guru Goes to Nexstar.
September 27, 2004... Peter Carril has joined Nexstar Capital Partners as a managing director, spokeswoman Charlotte Luer told IMW last week. Carril will also serve as a portfolio manager at the emerging markets specialty investment firm. Carril spent the...

Alaska Plan Picks Manager Finalists.
September 27, 2004... The $370 million Anchorage Police & Fire Retirement Board has short-listed three for a potential allocation to a balanced fund. Chuck Laird, director, declined to reveal who is on the shortlist. PFRB began examining the balanced fund market in...

SBCERA Selects International Finalists.
September 27, 2004... The $3.2 billion San Bernardino County Employees' Retirement Association has selected four finalists for its $100 million international equity mandate, said Tim Barrett, executive director. Fidelity Investments, New Star Asset Management,...

REITs in Florida: A Calm After Storm.
September 27, 2004... While the damage from Hurricane Ivan was still being sorted out, analysts claimed that the two hurricanes that preceded it didn't have a significant financial impact on REIT multifamily and manufactured home properties in Florida, and that no...

Thompson Touts Large-Cap As A Good Bet.
September 27, 2004... For John Thompson, portfolio manager at Thompson Investment Management, the often-maligned large-cap core space still continues to be a source of good returns. "There is a perception when a large business has slowed down it is broken...

Siedle: Responsibility Best Defense Against Conflict.
September 27, 2004... Enhancing the fiduciary responsibility of the investment consultant offers the best defense against the spate of conflict of interest issues between consultants and plan sponsors, contends Edward Siedle, president and CEO of The Benchmark Cos....

Where to Start.
September 27, 2004... As Siedle explains it, establishing fiduciary responsibility begins with demanding that the consultant file under Section 404 of the Employee Retirement Income Security Act of 1974 (ERISA) as a trustee sworn to uphold the highest standard of...

Odds & Ends.
September 27, 2004... *Gerry Lillis has joined Russell Investment Group as a director of relationship management in the firm's Institutional Investment Services group. In this newly created position, Lillis will be responsible for the development of strategic,...