Investment Strategy

Temple University trustees yesterday adopted a significantly more aggressive investment strategy for the university's endowment, a move officials hope will generate more gifts from donors. Temple's executive board voted to invest 50 percent of the university's $140 million endowment in stocks, while maintaining 50 percent in vehicles that produce fixed income, such as bonds. For the past decade, Temple had followed a strikingly unusual investment strategy by placing more than 90 percent of its endowment in bonds or cash.

As the elected police representative to the Pension Board, I am compelled to respond to Jonathan Saidel's Guest Opinion of Sept. 28 concerning the audit of the Municipal Pension Fund. The controller makes some assumptions that do not accurately reflect the fund's current status. I must take exception to Mr. Saidel's recent media campaign that has caused unnecessary fear and stress among many of the police and sheriff's officers I represent. I was first elected to the Pension Board in November 1984 and was appointed to the Investment Committee, serving with the other labor representatives and the city controller.

The mere mention of South Africa today frequently evokes anger - anger directed toward that country's oppressive practice of apartheid. As Americans, we are repulsed by the systematic racism and brutality imposed upon black South Africans by their country's government. In fact, many black and white Americans have banded together, as have people in other nations, in calling for severe sanctions against the South African government for its repugnant acts. Such sanctions often take the form of divestment of financial resources that support these terrorist acts.

Panic-proofing No matter your age, wild market swings shouldn't prompt you to change your investment strategy. But this is as good a time as any to make sure you are on the right path. Here's what to do: Young hot shots: If you have three decades or more before retirement, days like yesterday needn't faze you at all. Keep your money in high-return - and high-risk - investments. That's stocks, including those in emerging and international companies. Gen X and greedy: Baby bust workaholics all know to max out their 401(k)

Investing is never easy. But now, even as the global economy takes regular steps toward recovery, investors are wary of more land mines than usual. Whether it is the weakening dollar, the potential for inflation caused by the huge economic stimulus, the massive federal debt, or the specter of consumers' clinging to their money and stunting economic growth, there is no shortage of worries. "It's reached a level that I haven't seen in 25 years in this business," said Greg Merlino, president of investment management firm Ameriway Financial Services Inc., of Voorhees.

What's a wise investor to do in tough times like these? Choose a strategy that entails a level of risk you can tolerate, and stay with it, many experts counsel. Investing is never easy. But now, even as the global economy takes regular steps toward recovery, investors are wary of more land mines than usual. Whether it is the weakening dollar, the potential for inflation caused by the huge economic stimulus, the massive federal debt, or the specter of consumers' clinging to their money and stunting economic growth, there is no shortage of worries.

Cigna Corp. is moving forward with its efforts to shed non-health-care and benefits businesses. The Philadelphia insurance company said yesterday that it signed a definitive agreement to sell its bond investment group. The unit, which is part of Cigna's TimesSquare Capital Management subsidiary, is being sold to Bear Stearns Asset Management Inc. for an undisclosed amount. TimesSquare manages $6 billion in fixed-income assets for pension plans and other institutional investors.

That JPMorgan Chase could lose $2 billion in risky trades involving bonds, with the nation still recovering from a recession caused by big banks, might remind newspaper readers of the parable about the frog and the scorpion. That's the one where a fearful frog agrees to give a beguiling scorpion a ride across a river on his back, only to be stung halfway across. "Why?" the frog asks, noting that they both will now drown. "I couldn't help myself," replied the scorpion. "It's my nature.

What should the average investor do about a stock market that rockets up one week and plummets the next? The Dow's fluctuations - it fell 38 points yesterday to close at 2,928, after shooting past 3,000 last week - are unsettling. Don't panic. Hang onto those stocks because they're likely to go higher. Market analysts predict the bull market should continue, with low interest rates and improving corporate earnings driving the Dow Jones Industrial Average to 3,200 or 3,300 by year's end. They say the drop since last week mostly reflects profit-taking by large mutual funds eager to lock in profits when the market hit 3,000.

Chester County is sitting on a retirement nest egg worth $84 million. But county taxpayers shouldn't anticipate receiving any dividend checks from the pot. This fortune belongs to the county's 2,200 employees. Management of the county's pension fund - exactly $84,671,821.81 as of Sept. 30 - has become a hot topic among county officials. With so much money to invest and so many people relying on the long-term security of that money, county officials have begun to rethink their philosophy on how the mushrooming fund should be managed.

That JPMorgan Chase could lose $2 billion in risky trades involving bonds, with the nation still recovering from a recession caused by big banks, might remind newspaper readers of the parable about the frog and the scorpion. That's the one where a fearful frog agrees to give a beguiling scorpion a ride across a river on his back, only to be stung halfway across. "Why?" the frog asks, noting that they both will now drown. "I couldn't help myself," replied the scorpion. "It's my nature.

By Donn Scott The central Delaware River waterfront has been a focus of economic development in Philadelphia and the region for centuries. From the construction of Delaware Avenue at the behest of Stephen Girard to the creation of a shared railroad giving businesses equal access to the river, Philadelphia's government has long recognized the riverfront as an economic center. Previous investments in the waterfront were meant to keep Philadelphia competitive with other American cities as a commercial center.

The richest Americans are watching President Obama's proposed tax compromise closely. Lower taxes mean they won't have to invest so aggressively, or risk as much - or create so many jobs. At a recent New York meeting with the investment office of one of America's billionaire families, "we had our lunch at Le Cirque, and the theme of the lunch discussion was the redistribution of wealth in the United States," says John K. Hillman , founder and chief executive of Philadelphia Financial , an insurance investments firm that manages $3.5 billion for 350 family clients.

Investing is never easy. But now, even as the global economy takes regular steps toward recovery, investors are wary of more land mines than usual. Whether it is the weakening dollar, the potential for inflation caused by the huge economic stimulus, the massive federal debt, or the specter of consumers' clinging to their money and stunting economic growth, there is no shortage of worries. "It's reached a level that I haven't seen in 25 years in this business," said Greg Merlino, president of investment management firm Ameriway Financial Services Inc., of Voorhees.

What's a wise investor to do in tough times like these? Choose a strategy that entails a level of risk you can tolerate, and stay with it, many experts counsel. Investing is never easy. But now, even as the global economy takes regular steps toward recovery, investors are wary of more land mines than usual. Whether it is the weakening dollar, the potential for inflation caused by the huge economic stimulus, the massive federal debt, or the specter of consumers' clinging to their money and stunting economic growth, there is no shortage of worries.

Cigna Corp. is moving forward with its efforts to shed non-health-care and benefits businesses. The Philadelphia insurance company said yesterday that it signed a definitive agreement to sell its bond investment group. The unit, which is part of Cigna's TimesSquare Capital Management subsidiary, is being sold to Bear Stearns Asset Management Inc. for an undisclosed amount. TimesSquare manages $6 billion in fixed-income assets for pension plans and other institutional investors.

Warren V. "Pete" Musser has bowed to pressure from his directors and resigned as chief executive officer of Safeguard Scientifics Inc., bringing to an end his 48-year roller-coaster ride atop one of the region's most flamboyantly speculative investment companies. A longtime business associate of Musser's, Vincent G. "Buck" Bell, a Radnor investor and Safeguard director, has been named acting chief executive officer. Musser will remain chairman for now. A search for a successor is under way, director Robert Keith said yesterday.

Panic-proofing No matter your age, wild market swings shouldn't prompt you to change your investment strategy. But this is as good a time as any to make sure you are on the right path. Here's what to do: Young hot shots: If you have three decades or more before retirement, days like yesterday needn't faze you at all. Keep your money in high-return - and high-risk - investments. That's stocks, including those in emerging and international companies. Gen X and greedy: Baby bust workaholics all know to max out their 401(k)

Temple University trustees yesterday adopted a significantly more aggressive investment strategy for the university's endowment, a move officials hope will generate more gifts from donors. Temple's executive board voted to invest 50 percent of the university's $140 million endowment in stocks, while maintaining 50 percent in vehicles that produce fixed income, such as bonds. For the past decade, Temple had followed a strikingly unusual investment strategy by placing more than 90 percent of its endowment in bonds or cash.

Could a dartboard approach produce better results? Maybe. But a University of Pennsylvania official believes that despite a "very disappointing six months," its investment philosophy eventually will bear fruit. The market value of Penn's endowment fund rose a scant 0.6 percent from July 1 to Dec. 31, the first half of its fiscal year. That's compared to a rise of 8.4 percent in the same period for the S&P 500, a broad market measure that tells of a surging bull market overall.