HEATHROW, Fla. - The $110 million defined benefit fund of the American Automobile Association Inc. hired Freiss Associates to run 20% of the fund, or $22 million, in domestic equities.
Charles L. Frampton, managing director-accounting services and assistant treasurer, said funding came from evenly reducing the allocations to the fund's other managers. Miller Anderson & Sherrerd, runs fixed income, and Cooke & Bieler runs domestic equities. Each retains 40% of the fund. Hamilton & Co. assisted in the search.
American National Can
CHICAGO - American National Can Co. hired two managers for its more than $1 billion defined benefit plan.
Alliance Capital Management will manage foreign bonds and David L. Babson will manage small-cap domestic equities. Donald Wanfalt, treasurer, said each manager was awarded in excess of $50 million. Funding came from assets run by a manager terminated more than a year ago. Mr. Wanfalt declined to identify the manager.
GREENSBORO, N.C. - Investing in equities for the first time in about eight years, the $250 million defined benefit fund of Burlington Industries Inc. hired Wells Fargo Nikko to manage about $25 million in domestic and international index funds, said Park R. Davidson, treasurer and chairman-investment committee.
Funding came from maturing GICs. Some 85% of the plan is in GICs that mature this year and next. Frank Russell assisted in the search. Russell also is doing an asset allocation study to determine how to invest the remaining GIC proceeds.
Chicago Transit Authority
CHICAGO - The $1.2 billion Chicago Transit Authority Employees' Retirement System committed $7 million to Ark Capital Management, a fund-of-funds manager that will make investments in venture capital funds that target minority-owned businesses.
SPARTANBURG, S.C. - Adding its first minority-owned managers, the $70 million defined benefit pension fund of Denny's Inc. hired Ariel Capital Management and NCM Capital Management Group, said Lee Holliday, manager-retirement savings.
Ariel and NCM were assigned $2 million each in, respectively, equities and fixed income. Performance Analytics assisted.
Funding came from reallocating among the fund's existing five money managers, all of which were retained.
Houston Municipal Employees
HOUSTON - The $740 million Houston Municipal Employees Pension System hired State Street Bank and Trust as master trustee/global custodian, replacing Boatmen's Trust Co. The contract takes effect July 1, said Fred Holmes, the fund's chairman.
Bank of New York and Boston Safe Deposit were the other finalists.
HOUSTON - The $434 million Maritime Association-International Longshoremen's Association committed $10 million to Massachusetts Financial Services' Standard Equity Trust Fund, said an MFS spokesman.
The fund is an open-end mutual fund that invests in companies that meet certain labor-sensitive criteria.
Fund officials referred calls the fund's consultant, the Dallas office of William M. Mercer Inc. Calls to the consultant were not returned.
New Mexico Public Employees
SANTA FE - The $3.1 billion New Mexico Public Employees Retirement Association reappointed Wilshire Associates as its consultant, said Jeffrey States, director of investments.
He said the board has been happy with its relationship with Wilshire, and had sent out RFPs primarily because state law requires rebidding every four years.
Wyatt was the other finalist, he said.
Oregon Public Employes
SALEM, Ore. - The $18 billion Oregon Public Employes' Retirement System, made its first acquisition fund commitments in almost three years, said Jay Fewel, senior equity investment officer.
Subject to contract negotiations, the fund awarded $50 million each to First Capital Partners, TPG Partners amd Hicks, Muse. It committed $25 million Charterhouse Equity Partners.
Pacific Corporate Group assisted in the due diligence.
PHILADELPHIA - The $2.2 billion Board of Pensions and Retirement for the City of Philadelphia selected AMB Realty Advisors for a workout assignment for a portfolio of neighborhood and community shopping centers valued at $50 million, confirmed Margaret Flynn, investment analyst with the fund.
About $30 million of the portfolio was managed by MacFarlane Realty Advisors, which was terminated. The balance will come from a commingled fund that Ms. Flynn declined to identify.
Quaker State Corp.
OIL CITY, Pa. - Quaker State Corp. hired GAMCO Investors Inc. to manage $10 million in value equities and Confederation Life to manage an undisclosed amount in international equities for the company's $135 million defined benefit plan, said John Voyzey, manager-employee benefits. The assets came from an allocation managed by Alliance Capital, but no managers were terminated. Buck Consultants assisted.
City of Saint John
SAINT JOHN, New Brunswick - The $140 million (Canadian) pension fund of the City of Saint John, hired four managers in an attempt to improve performance and diversify the fund, said Daryl Wilson, commissioner of finance.
Knight, Bain, Seath & Holbrook Capital Management will run 15% of the fund in core Canadian equities; Goodman & Co., 15% in aggressive Canadian equities; J.R. Senecal, 50% in Canadian fixed income; and Putnam Investments, 10% in each of U.S. equities and EAFE-style equities.
Jarislowsky & Fraser, which had been sole manager and had run a balanced account, was terminated.
City of Shreveport
SHREVEPORT, La. - The $94 million City of Shreveport Retirement System hired Putnam Investments to manage $5 million in international equities, its first non-U.S. portfolio, said Ben Achee, pension manager.
SEI of Atlanta was the consultant.
AUSTIN, Texas - The $7 billion Texas Employees' Retirement System hired Citibank Global Asset Management and Commerz International Capital Management to serve as international equity advisers to the fund.
The firms will serve as advisers only and not as discretionary managers for about $420 million invested in non-U.S. equities.
United Community Service
DETROIT - United Community Services of Metropolitan Detroit hired its first consultant, Nordstrom Pension Consulting, to do an asset allocation study and performance measurement for the $100 million pension fund. Judy Ferres, manager of non-profit management services, which manages the pension fund, said the direction of the fund's future asset allocation will be worked out in the next few weeks.