APPLETON, Wis. - The AAL Funds selected Societe Generale Asset Management Corp. to subadvise a new foreign stock mutual fund. SoGen's international investment strategy is conservative and value-oriented.
City of Boston Retirement
BOSTON - Trustees of the $1.4 billion Retirement Board of the City of Boston terminated Prudential Global Advisors and hired Strategic Fixed Income to manage a $62 million bond portfolio, said Michael Travaglini, executive director.
The retirement board decided to terminate Prudential because of concerns over the company's loss of its CEO and CIO, both of whom quit earlier this year, Mr. Travaglini said. The change is effective June 30.
Scott Turner, managing director at Prudential, said the firm had been notified of the termination.
Meanwhile, the fund has decided to put its search for a new consultant on a fast track after SEI announced plans to sell its consulting business. RFPs for a new consultant will be out by the end of the month, Mr. Travaglini said.
CONCORD, N.H. - Chubb Insurance Co. picked Massachusetts Financial Services as a subadviser for its variable universal life portfolio. Chubb will invest in the MFS Variable Insurance Trust's emerging growth fund.
Existing manager Templeton now will also manage a foreign stock fund for Chubb.
VALLEY FORGE, Pa. - The Conestoga Family of Funds named Marvin & Palmer Associates a subadviser for a new international stock fund geared to 401(k) plans.
Meridian Investment is the investment adviser. Meridian's 401(k) product uses the Conestoga Family of Funds as its core investment vehicle.Equitable Resources
PITTSBURGH - Equitable Resources Inc. hired Putnam Defined Contribution Plan Services to provide bundled services for its $28 million 401(k) plan. Putnam will provide daily valued record keeping, trust and administrative services, employee education and communications. The company probably will select seven mutual fund options from Putnam, in addition to company stock, said Gaynell Sheperd, a spokeswoman.
The plan previously was unbundled, using investment management services from Equitable Financial, trust services from PNC and Frontier Bank, and record-keeping services from Barclays/BISYS.
City of Fall River
FALL RIVER, Mass. - The City of Fall River Contributory Retirement System hired Freedom Capital to manage half of its assets in a balanced fund. "We're hitting the $100 million mark, and the board thought it was too much to have with just one manager," said Florence Pines, executive secretary.
The rest of the system's assets will stay in a balanced fund with BayBank, she said. The system also may consider investing a small portion of its funds in international stocks later on.
SPRINGFIELD, Ill. - The $12 billion Teachers' Retirement System of Illinois hired its first three options managers for $300 million in equity and fixed-income overwriting programs, said Donald J. Nesbitt, chief investment officer.
Analytic Investment Management and Acorn Derivatives Management each received $100 million for equity overwriting options programs; Lotsoff Capital Management was assigned $100 million in a fixed-income options overwriting program.
All three programs will be overlays on existing equity and fixed-income portfolios run by other managers.
Callan Associates assisted with the both searches.
Los Angeles County
LOS ANGELES - The $17 billion Los Angeles County Employees Retirement Association has funded its new farm team of emerging managers.
The managers and the amounts they received through Progress Investment Management are: Apodaca-Johnston Capital Management, $20 million; Edgar Lomax, $17.5 million; GLOBALT, $17.5 million; Rampart Investment Management, $20 million; and Sloate, Weisman, Murray, $25 million.
The managers chosen through RCB International are Bramwell Capital Management, EverGreen Capital Management, Geneva Capital Management, Gries Financial, GW Capital, Hourglass Capital Management, ICM Asset Management, Radnor Capital Management, Sturdivant & Co., Twin Capital Management and Wilke/Thompson Capital Management. Each received $9.1 million.
Any manager with successful performance could get additional funding and become one of the system's mainstream investment managers, said Robert Hermann, a trustee.
Louisiana State Employees
BATON ROUGE, La. - The $3.5 billion Louisiana State Employees' Retirement System hired Schroder Capital Management International for a $100 million emerging markets equity portfolio.
James O. Wood, executive director, said Schroder is the system's first emerging markets manager and will be funded from cash. Other finalists were J.P. Morgan Investment Management, Morgan Stanley Asset Management and Jennison Investment Management.
Oregon Public Employes'
SALEM, Ore. - The $18.5 billion Oregon Public Employes' Retirement System committed $100 million to two limited partnership funds to expand its international private equity investment program, according to Jay Fewel, senior equity investment officer.
The commitments of $50 million each are subject to successful negotiations of terms and documentation. The funds are CVC European Equity Partners in United Kingdom and CWB Capital Partners II in Germany. The funds invest in buy-outs, Mr. Fewel said.
Oregon recently committed $75 million to John Hancock International Private Equity Partners II, an international fund of funds.
The fund also has $25 million committed to the John Hancock International Private Equity Partners I fund and $12.75 million in a Pacific Rim partnership.
By year end, Mr. Fewel said, the fund hopes to commit to one or more Pacific Basin international private equity limited partnership funds.
The new commitments, when finalized, will bring Oregon's alternative investment allocation to $1.9 billion.
Pennsylvania State Employes'
HARRISBURG, Pa. - The $240 million Pennsylvania State Employes' Deferred Compensation Plan hired Providian Corp. to take the plan's stable value investment option, replacing a modified deferred fixed annuity being provided by American United Life Insurance.
Providian is providing a wrapper on an active bond portfolio managed by Miller Anderson & Sherrerd. While plan officials did not specify an amount, the synthetic GIC fund is expected to contain more than half of the fund's total assets.
STAMFORD, Conn. - PIMCO Advisors Distribution Co. named subadvisers for two new open-end mutual funds.
NFJ Investment Group will run the PIMCO Advisors Value Fund, which will seek growth of capital and current income through common stocks of companies with below average p/es or higher dividend yields relative to their industry groups.
Cadence Capital Management will run the PIMCO Advisors Discovery Fund, a portfolio of primarily common stocks of companies with equity capitalizations of $1 billion or less that exhibit favorable growth characteristics subject to certain price criteria.
Plumbers and Pipefitters No. 9
WEST TRENTON, N.J. - The $105 million pension fund of the Plumbers and Pipefitters Local No. 9 hired Putnam Investments for $10 million in core growth equities. The account is expected to grow to $20 million.
Assets came from reducing an equity portfolio run by Lexington Management, said Glenn Shaffer, president of I.E. Shaffer & Co., the fund's administrator.
Randolph Macon College
ASHLAND, Va. - Doubling its commitment to venture capital, the $36.6 million Randolph Macon College endowment fund selected John Rutledge Partners II, said William L. Ball Jr., treasurer.
The fund will commit $1 million to Rutledge Partners, funding it gradually from cash flow. The partnership will invest in companies with less than $250 million in sales.
The endowment did the search itself, although Cambridge Associates, its consultant, assisted in evaluating Rutledge, Mr. Ball said.
R.I. Operating Engineers
PROVIDENCE, R.I. - The Rhode Island Operating Engineers Local 57 hired Segal Advisors as consultant for its $30 million pension fund and $6.5 million annuity fund, said Chandler Beals, administrator. The funds did not have a consultant.
Segal, which has been the pension fund's actuary for many years, will review the investment policy, conduct an asset allocation study, and review money manager performance, said Larry Marino, Segal consultant.
St. Louis Sewer District
ST. LOUIS - The $5 million Metropolitan St. Louis Sewer District deferred compensation plan hired American Express Institutional Services to manage a $500,000 guaranteed investment/stable value fund. LaSalle National Trust was the other finalist. In addition, the department hired Dodge & Cox to manage a $500,000 balanced fund. Vanguard Wellington Fund was the other finalist.
The firms were funded from a reallocation of assets. No existing managers were let go. Mercer Investment Consulting assisted.
Security Benefit Life
TOPEKA, Kan. - Security Benefit Life Insurance Co. selected Lexington Management Corp. to subadvise two funds using the same approach as the $10 million Lexington Ramirez Global Income Fund, which is run using research from Maria Fiorini Ramirez, a global economist whose firm has a joint venture with Lexington. The fund invests mainly in emerging markets.
Lexington initially will receive $5 million in each fund, one sold through the firm's broker-dealer channel and one sold as part of its variable annuity.
COLUMBUS, Ga. - Synovus hired Putnam Defined Contribution Plan Services to provide bundled services for a new 401(k) plan. Beginning July 1, Synovus will offer nine diversified Putnam mutual funds to its 6,000 employees.
Full support services will include daily valued record keeping, trust and administration, and employee communication and education, said Patrick Reynolds, vice president.
HINSDALE, Ill. - Tuthill Corp. hired Northern Trust to provide bundled services for its $10 million 401(k) plan. Tuthill's 800 plan participants in October will receive daily valued record keeping, trust and administration, and enhanced communication and educational services. Six mutual funds will be offered.
The plan is now valued monthly, offering three funds in a bundled service arrangement with a vendor not identified.