The $28.5 billion State Teachers Retirement System of Ohio has restructured its real estate acquisition and asset management operations into four geographic regions modeled after the Russell-NCREIF Property Index.
The fund, which has 7.5% of total assets invested in real estate, expects to have 9% invested by year end, said Herbert Dyer, executive director.
As a result of the restructuring, four directors in the real estate division will each be in charge of a region of the country: David Linn will be in charge of the eastern United States; Kevin Stahlman will oversee the South; Bonnie Roberts will be responsible for the Midwest; and Mary Ellen Grant will supervise the fund's activities in the West.
The restructuring will result in the real estate staff being increased to 42 from 36.
Robert Shultz, a senior vice president for the Common Fund, Westport, Conn., has left the firm.
Mr. Shultz left Feb. 24, according to Robert Felder, vice president of human resources. Mr. Felder would not comment on whether Mr. Shultz resigned or was terminated. Mr. Shultz declined comment.
The (pounds) 3.3 billion ($5.23 billion) Strathclyde Regional Council Superannuation Fund, Glasgow, Scotland, has awarded (pounds) 860 million in equity accounts to five managers, and still is seeking an overseas equity manager.
PDFM took over a (pounds) 510 million global equities portfolio from Murray Johnstone, said Geoff Singleton, deputy director of finance. Baillie Gifford was awarded a (pounds) 300 million U.K. stock mandate that had been run by Mercury Asset Management. No firms have been interviewed yet to take over MAM's (pounds) 230 million overseas equities portfolio.
In addition, the Strathclyde fund hired three managers to run a total of (pounds) 50 million in emerging market pooled funds. Capital International will manage (pounds) 20 million in an actively managed pool, State Street Global Advisors will run (pounds) 10 million each in active and passive vehicles, and Genesis Investment Management will handle a (pounds) 10 million active portfolio.
Hymans Robertson assisted.
The $450 million Massachusetts State Carpenters Pension Fund terminated Putnam Investments as manager of a $20 million equity account after the firm broke a promise that it would not use non-union labor on construction projects, a fund official said.
The relationship began just six months ago.
"There are plenty of investment managers whose investment records are just as good as Putnam's but who would not thumb their noses at our principles," said Martin Ploof, chairman of the board of trustees.
"We value the Taft-Hartley business, and we have grown that business over the last few years," said Nancy Fisher, a Putnam spokeswoman. "We regret that Massachusetts Carpenters have withdrawn their funds."
The money probably will be divided among existing equity managers.
Trustees of the $23 billion Minnesota State Board of Investment hired three advisers to manage a $2.1 billion semi-passive domestic stock portfolio, said Howard Bicker, executive director.
Hired to run $700 million each were Franklin Portfolio Associates, J.P. Morgan Investment Management and Wells Fargo Nikko. The money will come from a passive equity portfolio managed by Wilshire Associates, which remains as a manager.
The trustees also voted to allocate $100 million from the state's Assigned Risk Plan to GE Capital Management, for management in a semi-passive domestic portfolio.
In other business, the trustees voted to cut in half the board's $30 million commitment to the IMR Fund, because IMR could not find suitable deals.
Making its first move into the area, the $260 million University of Iowa Foundation hired Lazard Freres Asset Management for international bonds, said Larry Bruse, director-finance and treasurer.
The foundation targeted $10 million for the new manager. Mr. Bruse said assets would come from cash flow.
Cambridge Associates assisted.
The $80 billion California Public Employees' Retirement System has conditionally approved a $50 million joint venture with basketball player Earvin "Magic" Johnson to develop or acquire and improve retail shopping stores in economically depressed minority neighborhoods that are ignored by retailers.
The investment is subject to final negotiations.
Under terms of the agreement, suitable property types for investment would include neighborhood, community and regional shopping centers and free-standing grocery or pharmacy superstores.
Targeted locations will be Los Angeles, Oakland, San Diego, San Francisco and San Jose.
Adrian P. Anderson will assume the role of director, public funds, for Wyatt Investment Consulting this week.
Mr. Anderson will be based in Wyatt's Atlanta office and is taking over the job from Myra Lapeyrolerie, who is on disability leave.
Mr. Anderson most recently was an institutional portfolio manager at Greaves Capital Management, Atlanta, where his duties will be assumed by the rest of the company's investment team.
The $50 million savings and profit-sharing plan of Western Digital Corp. is restructuring.
The fund hired T. Rowe Price as record keeper and investment manager, subject to contracts. Formerly its record keeping was done in-house.
The fund, which expects to add to its options, currently has four: Fidelity Magellan; Fidelity Puritan; an internally managed stable value fund; and company stock.
Western Digital has not determined which funds will be added, or whether to keep its two existing Fidelity funds. It also might use T. Rowe Price or another firm to manage the stable value fund.
Alliance Pension Consultants, a third-party administrator for defined contribution plans, acquired the record keeping business of Kidder Peabody Inc. Pension Fund Services Group. Terms of the transaction were not disclosed.
PaineWebber, which last year acquired most of Kidder Peabody & Co., will manage the approximately $200 million in defined contribution plan client assets gained in the acquisition.
The $120 million Southfield (Mich.) Fire & Police Retirement System hired two managers, said George Vitta, consultant with Asset Strategies Portfolio Services, which assisted the plan.
Target Investors will be assigned $26 million for midcap growth stocks; and Oppenheimer Capital will be assigned $19 million for small-cap value stocks. Further details weren't immediately available.
Roman J. Gronkowski, Southfield secretary and treasurer, said the moves are part of a major restructuring.