FORT WORTH, Texas - American Airlines Inc. hired Brandywine Asset Management and Southeastern Asset Management for balanced portfolios for American's $3.5 billion defined benefit plan.
Each firm will run $100 million, said Dennis M. O'Hara, vice president-trust investments at AMR Investment Services, which oversees the investment management of the fund.
Assets will be reshuffled from existing managers to fund the new hires.
No managers were terminated.
LONDON - Trustees of the 2.6 billion ($3.87 billion) British Aerospace pension fund have hired Chase Manhattan Bank as global custodian following a review of custody arrangements, according to Michael Cattell, administrative manager.
London-based Chase replaces the Bank of Scotland.
The review was conducted with the help of The Bank Relationship Consultancy.
California Public Employees
SACRAMENTO, Calif. - The $82 billion California Public Employees' Retirement System approved commitments totaling $55 million to two limited partnerships.
The fund approved a commitment of $25 million to Bachow Investment Partners III, which makes direct equity and equity-related investments, primarily in small and middle-market communications-oriented growth companies.
The fund also approved a commitment of $30 million to SpaceVest Fund, a limited partnership that will invest primarily in privately negotiated equity and equity-related securities issued in connection with corporate acquisitions.
INDIANAPOLIS - The $180 million defined benefit plan of Central Newspapers Inc. hired Morgan Grenfell Capital Management to manage $35 million in core fixed-income investments, said Thomas MacGillivray, director of investments & trusts.
Callan Associates assisted.
INDEPENDENCE, Ohio - Centerion Energy Corp. added two options to its $250 million 401(k) plan, including its first international one.
Greg Tropf, senior investment analyst, said Phoenix Investment Counsel will manage a balanced mutual fund option, and Capital Research & Management will manage an international mutual fund.
The plan will retain its three existing choices - GICs, domestic equity and company stock.
Charles A. Dana Foundation
NEW YORK - The $246 million Charles A. Dana Foundation hired Standish Ayer & Wood to run $10 million in international fixed income, the fund's first specialist in the area, said Herbert Vine, controller.
Colonial Consulting assisted. Assets came from reducing the assignments of other fixed-income managers.
Grand Trunk Western Railroad
DETROIT - Grand Trunk Western Railroad Co. hired five firms to manage seven investment options for its $14 million management employees' 401(k) plan, said James A. Brewer, manager-employee savings. The plan also hired Kidder Peabody as record keeper, replacing Barclay Group.
Of the new options, INVESCO will run a balanced fund; Dreyfus, stable-value fixed income; Janus Capital and Phoenix Investment, both active equity; and Vanguard, active equity, S&P 500 index and short-term bonds.
Merrill Lynch was dropped as a money market fund manager, but was retained for balanced and long-term bonds.
INVESCO Fund Managers
LONDON - INVESCO Fund Managers Ltd. hired Chase Manhattan Trustees Ltd., London, as global custodian and unit trust trustee for its more than 1.3 billion ($1.9 billion) in unit trust assets.
Alan Wren, managing director, said the move was made to reduce the number of service providers. Chase replaces NatWest, Midland Securities Services and Royal Exchange Trust.
CHARLOTTESVILLE, Va. - The Investment Fund for Foundations appointed AMT Capital Services administrator of its TIFF Investment Program, its new family of five no-load funds.
AMT will manage day-to-day activities including custodial, compliance, auditing and accounting services.
Los Angeles County
LOS ANGELES - Pending final negotiations over fees, the $14 billion Los Angeles County Employees' Retirement Association selected four real estate managers: RREEF, TA Associates, Lowe and INVESCO. It is expected each will receive about $100 million to start, and could get additional money depending on the quality of their investment deals, according to county officials.
Finalist real estate managers in the running who didn't get picked were: Equitable, Jones Lang Wootton, LaSalle and Heitman.
Missouri State Employees
JEFFERSON CITY, Mo. - The $2.7 billion Missouri State Employees' Retirement System hired Asset Consulting Group to replace Wyatt as investment consultant, confirmed M. Steve Yoakum, executive director.
Wyatt "had some problems with turnover, and that affected their performance on our account," said Thomas Hodges, chairman of the fund's investment committee. Asset Consulting had been the fund's consultant before Wyatt.
New Hampshire Retirement
CONCORD, N.H. - The $2 billion New Hampshire Retirement System hired two equity managers, and terminated three, as it shifted its allocations among growth- and value-style managers, said J.P. Singh, director of finance.
Hired were Institutional Capital, to manage $128 million in value equity, and Turner Investment Partners, to manage $95 million in growth equity, he said. Terminated were: Hellman, Jordan, which had managed $130 million; Dewey Square, $100 million; and INVESCO Capital, $95 million. The remaining money managed by the three was allocated to existing equity managers.
Evaluation Associates assisted.
DANBURY, Conn. - OSi Specialties Inc., a private company spun off last summer by Union Carbide, hired Diversified Investment Advisers to provide bundled services to its new 401(k) plan, and now is deciding whether to establish a defined benefit plan.
Tim Kidman, vice president for human resources, said Diversified will handle investment management, record keeping, employee communications and education and trust services. Six commingled fund options, run in a manager-of-managers style by Diversified, will be offered, as well as a fund to manage employees' Union Carbide stock until it is sold.
Godwins Books & Dickensen assisted.
Employees will have a one-time chance later this spring to move $35 million in assets from Union Carbide's defined contribution to OSi's plan. OSi employees' defined benefit assets at Union Carbide are frozen.
Mr. Kidman said OSi officials also are considering a profit-sharing plan.
Palm Beach County
PALM BEACH, Fla. - The Palm Beach County Development Board hired Triumph Capital Management to run $10 million of operating assets in a venture capital fund, according to Larry Pelton, president. No further details about the hire were available.
Payless Drug Stores
WILSONVILLE, Ore. - Payless Drug Stores Inc. will outsource administration and investment management of the company's $110 million 401(k) plan to Wells Fargo Bank, San Francisco.
Payless will use the Wells Fargo MasterWorks bundled program for investment management, record keeping, trust, employee education and communication services. Payless selected seven mutual funds managed by Wells Fargo including a GIC/bond option, an international equity fund, Life Plan asset allocation funds and several active and passive equity funds, said David Jessick, the company's chief financial officer.
The plan will move to daily funds valuation and participant account transfer capabilities from quarterly. Participants will have access to a toll-free voice-response system to perform most account functions.
Payless previously handled plan record keeping and administration internally, using a number of mutual funds from different vendors, which Mr. Jessick did not identify.
No consultant was used.
STAMFORD, Conn. - Making its first move to the area, the $680 million defined benefit fund of Pitney Bowes Inc. hired Putnam Investments to manage a $15 million global bond portfolio, said Charles F. McBride, director-treasury benefit services.
Callan Associates assisted.
DETROIT - R.L. Polk & Co. hired three managers for its $35 million 401(k) plan, said Gary O. Puvalowski, vice president and treasurer.
Vanguard will replace Travelers as manager of an S&P 500 stock index fund.
In addition, the fund added IDS' New Dimensions fund and Fidelity's Puritan fund.
With the changes, the plan now will offer participants more investment choices.
Hartland & Co. assisted in the searches.
Wertheim Schroder Investment
NEW YORK - Wertheim Schroder Investment Services, New York, hired State Street Bank to be record keeper, administrator and custodian for its new family of mutual funds geared to the 401(k) marketplace, according to Robert Bruno, chief administrative officer.
Wertheim Schroder hired Boston Financial Data Services, an affiliate of State Street, as transfer agent.