DANVILLE, Va. - Trustees of the $76 million Danville Employees' Retirement System voted to invest $5 million in Wachovia's Emerging Growth Timberland Fund, according to Carolyn Evans, retirement system coordinator.
Assets will come from reducing allocations to the system's fixed-income managers. No managers will be terminated.
Fan Fox & Leslie R. Samuels
NEW YORK - The $116 million Fan Fox & Leslie R. Samuels Foundation Inc. made its first moves into international and a hedged strategy, said Marvin A. Kaufman, president.
The fund hired The Investment Fund for Foundations to run $3 million in international equities, its first investment with TIFF, which was formed this year. Also, it hired Farrell-Wako Global Investment Management to run $5 million in a market-neutral strategy. Farrell-Wako also runs a $22 million large-cap stock portfolio and $18 million in small stocks for the foundation.
Assets for both hires came from reducing an in-house run fixed-income portfolio to about $20 million. No consultant was used.
CINCINNATI - The $3 million Gardner Foundation hired Capstone Asset Management to run $1 million in growth equities, said Linnell Sullivan, financial consultant at Smith Barney Consulting Services, the foundation's consultant.
The fund terminated Hatteras Capital Management.
Graphic Arts Industry
WASHINGTON - The $170 million Graphic Arts Industry Joint Pension Trust hired Marco Consulting Group as its consultant, replacing SEI Corp., said Arthur Dinkin, administrator. He said Marco's services will include performance measurement and investment management searches, but added there are no immediate plans to seek new managers.
Mr. Dinkin declined to discuss reasons for the change.
HAMPTON, Va. - The $100 million Hampton Employees' Retirement System hired Bank of New York as master custodian after an internal search.
Michael Monteith, board chairman, said BNY was selected because of its sophisticated information delivery systems and capabilities.
Illinois Municipal Retirement
OAK BROOK, Ill. - The $7 billion Illinois Municipal Retirement Fund has made its first commitments - totaling $70 million - to non-U.S. real estate.
The fund will invest $40 million with a joint venture between LaSalle Advisors and Grosvenor Estate, and $30 million with AXA/the Equitable fund, a joint venture between AXA Insurance in France and Equitable.
SPRINGFIELD, Ill. - Trustees for the $12 billion Teachers Retirement System of Illinois voted to allocate an additional $25 million to Capital Associates Realty Advisors separate account, according to the minutes of the June board meeting.
Assets will come from cash, according to the minutes.
Capital was first hired as a real estate manager for the system in 1992.
Chief Investment Officer Thomas Zimmerman was unavailable for comment.
International Finance Corp.
WASHINGTON - The International Finance Corp. will invest in the new Peru Privatization Fund, a debt-for-equity conversion fund managed by Samuel Montagu & Co. and offered by Chase Manhattan Bank, Midland Bank and Banco de Creditor del Peru. The IFC will take up to a 12% stake in the fund, which has a target size of $250 million of face value of Peruvian debt, or about $110 million at current market value.
The fund will exchange outstanding Peruvian government debt for shares in state-owned enterprises being privatized and also will use cash raised from institutional investors to purchase shares in the privatized companies.
London Borough of Lewisham
LONDON - The 280 million ($431 million) London Borough of Lewisham Superannuation Fund has hired Morgan Grenfell Investment Management Ltd., London, to manage the entire fund in a balanced account.
The move to external management was made necessary by the death of longtime internal manager Harwood Whitehead earlier this year, a spokesman confirmed.
Integer Treasury Services, London, assisted on the search.
BOSTON - The $1.2 billion Massachusetts Municipal Depository Trust, the state's money market fund, renewed its contract with Fidelity Investments as administrator.
Joe Malone, state treasurer, said the new contract will result in a $1 million savings because the annual fee will be lowered to 0.2% of total assets managed from 0.28%. The contract is for four years with a one-year renewal option.
Memphis Light, Gas and Water
MEMPHIS, Tenn. - The $587 million Memphis Light, Gas and Water Division Pension System allocated a total of $30 million to three investment managers, said Marvin Winston, manager, cash management.
EverGreen Capital Management will invest $10 million in a value equity portfolio; Southwind Partners will manage a $5 million hedge fund; and RhumbLine Advisers will run a $15 million small-cap stock index fund.
Assets will come from cash, said Mr. Winston.
Mississippi State University
STARKVILLE, Miss. - Making its first moves to international and speciality managers, the $60 million Mississippi State University Foundation hired three managers, said David D. Easley, chief financial officer.
Delaware Investment Advisers will run $3.1 million in a global fixed-income mutual fund. Templeton will run $7.8 million in an international equity mutual fund. NationsBank will run $11.7 million in a value and income portfolio.
Assets came from changing the assignments of the fund's three incumbent managers, all running balanced portfolios.
Now, Deposit Guaranty National Bank will run $7.8 million each in growth equity and small-cap stock portfolios. Trustmark National Bank will run $9 million in domestic fixed income and $3.9 million in large-cap equities. Hancock Bank will run $9 million in domestic fixed income.
Wellesley Group assisted.
ROCKVILLE, Md. - The Montgomery County Employees' Retirement System hired Walpert, Smullian & Blumenthal to provide investment advice to participants in a new defined contribution plan to be offered Oct. 1.
Julie Dellinger, executive director, said the hiring is subject to contract negotiations, The other finalist was Dembo, Jones, Healy, Pennington & Ahalt.
The Montgomery County board also has hired Fidelity Investments, subject to contract negotiations, as the bundled service provider for the new plan. Through Fidelity, the county will offer participants a choice of 10 investment options.
National Electrical Annuity
WASHINGTON - The National Electrical Annuity Plan of the International Brotherhood of Electrical Workers invested $20 million in the CIGNA America Fund, managed by CIGNA Retirement & Investment Services. The investment is the first the fund has attracted; the fund will invest only in loans that benefit U.S. union members by creating or supporting union jobs. Roy Dickinson, the union's executive assistant, said funding will come from cash flow.
Orange County Employees
SANTA ANA, Calif. - Trustees of the $2.1 billion Orange County Employees' Retirement System hired three real estate managers, making initial commitments totaling $60 million, according to Terry Slattery, investment analyst.
American Realty Advisors will receive $25 million initially and a commitment of another $25 million within the next 18 to 24 months, said Mr. Slattery. American will make purchases of opportunistic real estate, which Mr. Slattery described as undervalued but expected to appreciate in value.
PRICOA Property Investment Management will receive $15 million plus a commitment of $35 million for international real estate.
GIM Capital Management will receive $10 million initially plus a $15 million commitment to invest in stocks of publicly traded real estate companies worldwide.
The investment staff is studying where the money to fund the new hirings will come. "We're going to have to study our cash flow situation," said Mr. Slattery. "We don't plan to affect any of our current managers."
The new hirings bring Orange County's real estate allocation to 13%. Its target is 15%, said Mr. Slattery.
Pacific Gas Transmission
SAN FRANCISCO - Pacific Gas Transmission Co., a subsidiary of Pacific Gas and Electric Co., is establishing a separate 401(k) plan for its 300 employees Jan. 1. The new plan will receive $18 million in assets from its parent company's 401(k). PG&E stock assets will be frozen, said Dan Robinson, Pacific Gas Transmission's manager of human resources.
Wells Fargo Nikko Investment Advisors will provide bundled services, including investment management, record keeping, trust and employee education. Mr. Robinson said the new plan will have six investment options managed by Wells Fargo; the final choice of funds is still to be determined.
Pacific Gas Transmission will remain a subsidiary of PG&E, although Mr. Robinson said the parent company is talking with a potential buyer. The new plan will be established regardless of Pacific Gas Transmission's ownership.
HARRISBURG, Pa. - The $435 million Pennsylvania Municipal Retirement System hired GLOBALT Inc. to manage $10 million in equities. Secretary James B. Allen said a manager he wouldn't identify was terminated to fund the new hire.
ZEIST, the Netherlands - The 50 billion Dutch guilder ($28.65 billion) Pensioenfonds PGGM hired Alfred Berg, a Stockholm money manager, to run a 100 million guilder Scandinavian equities portfolio, said Christiaan Brandsma, deputy director of investments.
The hiring stemmed from a move by fund officials to take the country asset allocation decision into their own hands. In the process, a world index portfolio run by Wells Fargo Nikko was terminated. Wells Fargo Nikko now runs separate country index portfolios for the fund, but Scandinavia was not included.
Separately, fund officials hired Emerging Markets Management to run a 200 million guilder emerging markets portfolio. It also invested 50 million guilders into a pooled emerging markets product run by Rotrusco.
Quantitative Group of Funds
LINCOLN, Mass. - The Quantitative Group of Funds selected investment managers to run three new mutual funds, according to Chester Lynn Wickwire, senior vice president.
Boston International Advisors, which manages the firm's foreign growth and income fund, was named to run a new emerging markets fund; LBS Capital Management, Clearwater, Fla., was named to run a domestic small- and midcap growth fund using neural networks, a form of artificial intelligence; and Numeric Investors L.P., Cambridge, Mass., which already runs a small-cap fund for Quantitative, will run a domestic midcap fund.
San Francisco City & County
SAN FRANCISCO - The $6.2 billion San Francisco City & County Employees Retirement System has selected, pending final negotiations, Capital International as its emerging market manager, said Clare Murphy, chief executive officer.
The fund will allocate $60 million to the manager - $20 million from internal fixed income and $40 million from its existing international manager, Capital Guardian.
Callan Associates assisted in the selection.
City of Tampa
TAMPA, Fla. - The $250 million-plus City of Tampa General Employees' Retirement Fund hired William M. Mercer's Atlanta office to replace SEI as consultant, said Paul Broughton, office manager.
The pension fund decided to drop SEI because of a deterioration in service resulting from the consulting firm's restructuring, he said.
"Some of the events that happened in conjunction with SEI's corporate changes did not please the trustees," Mr. Broughton said.
No changes in asset allocation or managers are contemplated, he said.
Texas-New Mexico Power
FORT WORTH, Texas - The $70 million Texas-New Mexico Power Co. defined benefit pension plan committed $5 million to the Putnam International Trust, a commingled international equity portfolio, according to Dennis Cash, vice president. William M. Mercer assisted in the search.
University of Massachusetts
BOSTON - The University of Massachusetts Foundation Inc., with $40 million in assets, hired TCW as its first emerging stock markets manager.
The $3.5 million allocation will be managed in a pooled vehicle. Assets come from liquidating a portion of an equities index account managed by State Street, said Robert Lyons, the organization's chief financial officer.