AK Steel Corp.
MIDDLETOWN, Ohio - The $789 million pension fund of AK Steel Corp. hired The Boston Co. to manage $50 million in large-cap equities, and Miller, Anderson & Sherrerd to manage $100 million in fixed income, said Pat Edgington, manager, investment administration.
Ms. Edgington would not identify the money managers that previously handled the $150 million.
Ames Department Stores
ROCKY HILLS, Conn. - Ames Department Stores Inc. hired IDS Institutional Retirement Services to provide a fully bundled service for its $60 million 401(k) plan. IDS will provide daily valued record keeping, trust services, employee education and three mutual funds - growth, growth and income and balanced. IDS also will provide GIC management. The plan also has a company stock fund.
Ames' previous record keeper was Segal Cos.; its trustee was State Street Bank; and its only investment options were a GIC/fixed-income option managed by Fiduciary Capital Management and the company stock, according to Bob Marth, director of benefits administration.
PITTSBURGH - The $1.8 billion pension fund of Armco Inc., Pittsburgh, shifted $250 million from internal fixed-income management to three outside money managers.
The steel producer allocated $100 million apiece to Miller, Anderson & Sherrerd and Putnam Investments, and $50 million to Trust Co. of the West, said Patricia Edgington, manager of investment administration.
SAN JUAN, Puerto Rico - The $200 million Automobile Accident Compensation Administration, hired Jurika & Voyles to run $28 million in growth equities, said Myrna Rivera, senior vice president and consulting group director of Smith Barney in San Juan, the fund's consultant.
In addition, the fund's assets will be rebalanced so the three existing managers - 1838 Investment Advisors, Eaton Vance and Oppenheimer Capital Management will run $60 million, $70 million and $42 million, respectively.
While 1838 will remain a balanced manager, the other two firms' mandates, which formerly were balanced, have been changed.
Eaton Vance will run fixed income and Oppenheimer will run equities.
The changes are effective Nov. 1.
California Public Employees
SACRAMENTO, Calif. - The $78 billion California Public Employees' Retirement System approved a commitment of a minimum of $25 million up to a maximum of $50 million in the TCW Special Credits Fund V-The Principal Fund.
The limited partnership invests primarily in the debt obligations of financially distressed companies. The long-term objective is to convert that debt to equity and obtain control or significant influence over such distressed companies following their reorganization.
Cambridge Series Trust
RICHMOND, Va. - Cambridge Series Trust, a series of mutual funds sponsored by Cambridge Investment Advisers, named Scudder Stevens & Clark as subadviser for a new global stock portfolio.
The custodian will be State Street Bank & Trust.
Dallas Police & Fire
DALLAS - The $830 million Dallas Police & Fire Pension Fund hired Morgan Grenfell Asset Management to manage a $24 million emerging markets equity portfolio, according to Richard Tettamant, administrator.
Wilshire Associates assisted in the search.
Funding came from cash flow.
HANOVER, N.H. - The $800 million endowment for Dartmouth College committed $5 million the Multi-State Homebuilding Partners Fund sponsored by Hearthstone Advisors, said Paul Olsen, director of real estate.
In addition, the endowment is in the final stages of selecting one or two real estate funds that will invest in opportunistic/distressed properties, according to Mr. Olsen. He expects the decision to be made in late September.
NASHVILLE, Tenn. - Equitable Securities Corp. selected investment managers for ESC Strategic, its new family of mutual funds that will take a manager-of-managers approach.
For the ESC Strategic Global Equity fund, GlobeFlex will manage small- to midcap U.S. stocks; Murray Johnstone International, mid- to large-cap foreign stocks; and Blairlogie Capital Management, emerging markets stocks.
For the ESC Strategic Income fund, the managers are: Llama Asset Management, formerly Garner Asset Management, for core fixed income; Cincinnati Asset Management, high yield; and Murray Johnstone, international fixed income.
The ESC Strategic funds also include a single manager series with funds in various asset classes managed by Equitable Asset Management, which also is the investment adviser to the fund family.
Asset allocation services will be provided by the IMES Consulting Group.
Gates Rubber Co.
DENVER - The $290 million defined benefit plan of Gates Rubber Co. will invest $110 million in Frank Russell's Equity I fund, a large-cap equity portfolio, confirmed Jay Schmelter, director of corporate retirement.
Mr. Schmelter declined to name the managers let go to fund the allocation.
The Equity I fund allocates assets to 10 money managers.
HOLLYWOOD, Fla. - Homeowners Group Inc. has invested $8 million in corporate funds in two new bond mutual funds sponsored by Equitable Securities: the Strategic Asset Preservation Fund, which invests mainly in shorter-maturity instruments, and the more aggressive Strategic Income fund, according to Laura Baron, controller.
No further details were available at press time.
Jones & Babson
KANSAS CITY, Mo. - Jones & Babson has selected Kornitzer Capital Management to run a new balanced mutual fund investing in common stocks, convertible bonds and convertible preferred stocks as well as corporate and government bonds.
The firm offers 21 mutual funds totaling more than $1.6 billion.
MELBOURNE, Australia - Kodak (Australasia) Proprietary Ltd. hired John A. Nolan Associates as asset consultant for its $85 million (Australian) superannuation fund.
The firm replaces William M. Mercer.
Kodak is considering moving from a balanced manager approach to a specialized manager approach.
RESTON, Va. - The $200 million defined benefit plans of Lafarge Corp. are switching master trustees effective Jan. 1. NBD Bank will replace U.S. Trust Co. of New York, said Philip A. Millington, treasurer.
The move is being made to "further and concentrate" its banking relationship with NBD, he said. The company already uses the bank for financing and other commercial banking services. "We had no problems" with U.S. Trust, he added. NBD will provide similar services at a similar fee as U.S. Trust.
City of Lynn
LYNN, Mass. - The $85 million City of Lynn retirement fund hired Segal Advisors as its first consultant. Now, the fund plans to hire additional money managers and perhaps diversify into international, said John Pace, a board member. The De Burlo Group has been Lynn's sole manager for nine years.
Segal won the consultant's job over A.G. Edwards, Prudential Securities and The Hannah Group.
MILWAUKEE - The Milwaukee County Employees' Retirement System, with about $1 billion in assets, made an initial move into international equities, hiring Capital Guardian Trust for $30 million, said Jac Amerell, director.
Last spring, the board had reset its asset allocation to include 5% international equity. The board probably will hire another manager to get the fund up to that level, although a search is not in the works now, Mr. Amerell said.
He said international fixed income wasn't included in the system's allocation, but eventually the board may take a look at whether it should be.
William M. Mercer assisted with the hiring.
DULUTH, Minn. - The $192 million Minnesota Power pension fund made its first move to venture capital and expanded its real estate allocation, said Dennis L. Hollingsworth, assistant vice president-corporate development.
The fund hired Grotech to invest $5 million in a venture capital fund and placed $5 million in an Equitable real estate commingled fund.
The real estate move raises the fund's total allocation to the area to nearly $16 million, or 8.2% of the fund's total assets. It already has $8.5 million invested with Equitable and $2.3 million with Schroder Real Estate Associates.
Mr. Hollingsworth said the fund plans to raise Schroder's assignment to $5 million over the next year.
Funding for the allocations will come from cash flow.
Hewitt Associates assisted in the hirings.
Nevada Public Employees
CARSON CITY, Nev. - Board members for the $5.7 billion Nevada Public Employees' Retirement System hired Loomis Sayles' Detroit office to manage a target allocation of $350 million in value equities, according to Laura Wallace, investment officer.
Loomis beat out Brinson Partners, Oppenheimer Capital and Massachusetts Financial Services, although the board felt "very comfortable" with all four firms, Ms. Wallace said.
Callan Associates assisted.
MINNEAPOLIS - The Pillsbury Co., has moved its small-cap equity allocation from Provident Capital Management to 1838 Investment Advisors following Provident's small-cap team, which changed firms in June.
John Bohan, vice president-pension investments in charge of the $976 million plan, would not disclose the size of the allocation, but said 1838 has received its initial allocation and may receive more assets in the future.
No other changes are planned.
CHICAGO - Principal Preservation Portfolios selected Mesirow Financial as subadviser of the newly launched Select Value Portfolio.
Principal Preservation is a fund group sponsored by B.C. Ziegler and Co.
The Select Value Portfolio invests primarily in domestic midcap stocks, and seeks securities undervalued with respect to earnings, book value and earnings growth potential, said portfolio manager Kenneth S. Kailin, a vice president of Mesirow.
Puerto Rico Employees
SAN JUAN, Puerto Rico - The $50 million Commonwealth of Puerto Rico Employees Association has hired Smith Barney as a consultant.
The new consultant will revise the fund's investment policy and perform asset allocation studies.
Currently, all of the fund's assets are invested in certificates of deposit.
This is the fund's first consultant.
Republic Automotive Parts
NASHVILLE, Tenn. - The $12 million defined benefit plan of Republic Automotive Parts Inc. invested $1 million in the ESC Strategic Global Equity Fund, a mutual fund sponsored by Equitable Securities Corp., said Don Hauk, chief financial officer.
Assets for the funding came from reductions in the fund's three separate accounts: core equities run by Globeflex; value equities run by Brandes; and small-cap stocks run by Gardner Lewis.
Mr. Hauk said fund officials decided to invest through a mutual fund because "it was such a small piece we wanted to put in global, we felt that you get better diversification with a mutual fund than a separate account."
Investment Management Evaluation Services, a subsidiary of Equitable, is the fund's consultant.
SYDNEY, Australia - The $630 million (Australian) Retail Employees Superannuation Fund hired Schroders Investment Management (Singapore) to run an A$10 million Asia ex-Japan equity portfolio, replacing Bankers Trust Australia. Michael Lillicrap, the fund's general manager, said Bankers Trust was dropped because of the departure of key investment people from BT's Asia team. Bankers Trust still manages an A$20 million global portfolio for the fund.
John A. Nolan & Associates is the consultant.
NEW YORK - The $90 million non-union defined contribution plan of Reuters America Inc. moved to a bundled approach, hiring Putnam Investments.
Putnam will provide 10 diversified mutual funds, record keeping, trust and administrative services, investment education employee communications and an automated voice-response system.
All administrative functions will be outsourced to Putnam in a virtually paperless system, said Deborah L. Klock, pensions manager.
Implementation is scheduled to begin Jan. 1.
Putnam replaces master trustee and record keeper Bankers Trust, which also manages three of the plan's five investment options; Cooke & Bieler, which manages a common stock fund; and Lazard Freres, which manages an international equity fund.
The search was handled internally.
Stage Hands Local 2
CHICAGO - The $25 million Stage Hands Local 2 Retirement Plan and $8 million Stage Hands Local 2 Annuity Fund hired Marco Consulting as the funds' first pension consultant, said Jerry Conrad, plan administrator.
Mr. Conrad said Marco will conduct an asset allocation study and will handle manager searches, if the fund decides to conduct any in the future.
Currently, he said, the retirement fund is split equally between Stein Roe & Farnham and ANB Investment Management, both balanced managers.
The annuity fund is entirely in a balanced account with ANB Investment.
Vermont State Retirement
MONTPELIER, Vt. - The $1.2 billion Vermont State Retirement System hired Morgan Grenfell Capital Management to run $40 million to $50 million in Vermont's first allocation to global bonds.
The allocation was made in an effort to diversify the fund, said William H. Rockford Jr., deputy treasurer. No managers were terminated.
Callan Associates assisted in the hiring.
West Virginia University
MORGANTOWN, W.Va. - Making its first move to international, the $120 million West Virginia University Foundation hired the Common Fund for $7 million to $10 million in international equities, according to Maribeth Amyot, treasurer.
Half of the funding will come from cash flow, while the other half will come from reducing the assignment of the fund's only fixed-income manager, Oppenheimer Capital, which will retain about 35%, or $42 million, of the fund.
Morgan Keegan assisted in the search.
City of Woburn
WOBURN, Mass. - The $30 million City of Woburn Retirement System hired Keystone Investment Management to run $10 million in domestic equities, said Gerry Surette, city auditor.
Assets came from a reduction in the allocation to the fund's only other investment manager, David L. Babson.