June 14, 1984

In what will be one of the largest pension fund transfers, the New York State Teachers Retirement System has informed the Manufacturers Hanover Investment Corporation that over the next few months it plans to withdraw $1.9 billion of common stock assets currently under an advisory contract. The coming move, confirmed by a spokesman for the $12 billion teachers fund, follows five years of subpar performance in which the portion of the fund's common stock assets advised by the subsidiary of the big New York bank failed by a wide margin to perform as well as of the Standard & Poor's 500-stock index. To perform in line with the market, the system plans to invest most of the $1.9 billion in an internally administered index fund. Its portfolio is weighted and adjusted by computer to conform to the makeup of the S.& P. 500 index. The remainder of the $1.9 billion withdrawn will go to a new investment adviser to be named by year-end. The move to expand the amount of assets in the index fund to 50 percent of the system's $4.8 billion common stock portfolio and to diversify managers was based on a recommendation by an outside pension consulting firm, a spokesman said.

Some of the best-known fashion designers, including Georgio Armani, Ralph Lauren, Norma Kamali and Hanae Mori, increasingly are emphasizing their own boutiques. They see this form of retailing as the best way to showcase their talents and bypass the vagaries of department store distribution and merchandising. Moreover, profits at boutiques can be more than twice as high as those from supplying goods to other retailers. ''This is truly the way to get out there in your own personal way,'' said Betsey Johnson, a designer of women's clothing. Her company, which grosses about $7 million annually, opened its third boutique three weeks ago about a half-block from Bloomingdale's, one of the more than 500 stores that carry her fashions.

A report Tuesday in the Briefing column of the Washington Talk page incorrectly reported the position formerly held by Stanley Sporkin at the Securities and Exchange Commission. He was chief of its enforcement division.

George McGovern urged the Democrats to nominate Walter F. Mondale. Page B16. WASHINGTON, June 13 - When it comes to Vice-Presidential politics and the prospects for a unified Democratic Party, it is essential to understand that the Presidential campaign has entered a period when the behind- the-scenes negotiations of the campaign operatives become more important than the public performances of the candidates. In the public part of the campaign, this has been a period for marking time. Any citizen eager to know what is going on has had to make do with Gary Hart's speeches and the occasional press releases intended to keep the electorate up to date on thoughts that occurred to Walter F. Mondale on his vacation at Southampton, L.I.

Allen & Company Inc., the Wall Street investment house, entered the bidding for Conrail yesterday, saying it would submit an offer of $1.1 billion plus an undisclosed amount in warrants. The company said its bid to acquire the 85 percent of Conrail held by the Federal Government would be formally made before the Department of Transportation's deadline of next Monday. The remaining 15 percent of the stock is held by the railroad's employees. Two other offers for the railroad have been made so far. The Alleghany Corporation, an investment company, has offered $1 billion in cash and, to make the bid more attractive to the Government, has said it would forgo $1.2 billion in tax credits due the railroad. In addition, the Railway Labor Executives' Association, representing Conrail's unions, has made a bid that it values at about $2 billion.