NEW YORK - The $2.3 billion Citicorp pension fund hired two outside managers.
Snyder Capital Management was assigned $25 million to run a small-and midcap domestic value equities portfolio, said Ronald A. Walter, vice president-director investments. Bridgewater Associates was assigned $50 million to run a domestic inflation-linked bond portfolio.
Funding will come from cash.
The two are the fund's first outside managers, except for Chancellor Capital Management, a former Citicorp unit that manages some domestic equities and fixed income, and Yarmouth Capital in real estate.
Connecticut Trust Funds
HARTFORD, Conn. - The $11 billion Connecticut Trust Funds hired Rogers, Casey & Associates Inc. as its first investment consultant. The hiring resulted from a search that was initiated by state Treasurer Christopher Burnham shortly after he took office in January.
City of Dallas
DALLAS - The city of Dallas is revamping its $60 million 457 plan and $50 million 401(k) plan effective July 1.
In the 457 plan, Great-West Life & Annuity was hired as record keeper; in the 401(k) plan, Wells Fargo Nikko Defined Contribution Group was hired as record keeper. Both will offer daily valuation.
Previously, Public Employee Benefit Service Corp. was record keeper for both plans. A PEBSCO spokesman confirmed that the contracts have not been renewed by the city, but had no further comment.
Both funds also restructured their investment options. The 457 plan reduced its options to 11 from 18. Everard Davenport, assistant city attorney, didn't identify the old or new managers.
The 401(k) plan's options were increased to 11 from nine. Wells Fargo Nikko will manage seven of the options, including five asset allocation funds, said Richard L. Tettamount, chairman of the 401(k) board.
Mr. Tettamount did not name other managers.
ETOBICOKE, Ontario - The $C200 million (U.S. $145 million) Goodyear Canada Inc. pension fund hired Wells Fargo Nikko Investment Advisors Canada for its alpha tilt U.S. equity fund, said Barry W. Gilmour, manager-pension fund administration. Wells will be assigned C$10 million. The strategy seeks to add value to returns through a subjective tilting of a semi-index fund, using about 250 stocks.
Assets came from AMI Partners, which ran an active U.S. equity portfolio.
J.L. Hammett Co.
BRAINTREE, Mass. - J.L. Hammett Co. will move its $9.3 million 401(k) plan to Putnam Defined Contribution Plan Services July 1. Putnam will provide fully bundled plan services, including daily valued record keeping, plan administration and trust, employee communications and education, and an automated voice-response system. Five diversified Putnam mutual funds will be offered. A GIC option, managed by John Hancock Funds, the current provider, will be assumed by Putnam when the contracts mature.
Hancock had provided bundled services.
S.C. Johnson & Son
RACINE, Wis. - The $350 million S.C. Johnson & Son Inc. profit-sharing and savings trust hired two managers and added three funds, including its first in international.
R.A. Poetker, trust administration manager, said the fund hired Templeton Worldwide for its foreign equity fund. Also, it hired Fidelity Investments for its asset manager fund and its low-price stock fund.
J.H. Ellwood & Associates assisted. The hirings - the first in five years - bring the total number of funds for employee-directed investment to 10.
TUSCALOOSA, Ala. - Mercedes-Benz U.S. International hired American Express Institutional Services to provide full bundled services for its new defined contribution plan. American Express will provide investment management, daily valued record keeping, trust and administrative services and employee education and communications. The plan will offer five mutual funds through American Express Financial Advisors and the Templeton Foreign fund through the SmartPartners alliance.
The plan, which will start July 1, will be offered to employees at a new U.S. manufacturing plant, the parent company's first outside Germany.
Other North American employees of the parent company, Daimler-Benz, are covered by separate retirement plans, noted Pete Schwartz, a spokesman for the U.S. manufacturing subsidiary.
The new plant will employ about 1,500 people when it opens in 1997.
New York State & Local
ALBANY, N.Y. - The $60 billion New York State & Local Retirement Systems committed $75 million to Colony Advisors' Colony Investors II, an opportunistic real estate fund, according to Cynthia Munk, a retirement system spokeswoman.
The fund also hired eight real estate managers to make direct property investments for the fund. A decision hasn't been made on the amount of money each manager will receive.
Some managers will have discretion; others won't.
The managers hired were: Equitable Real Estate for industrial, retail and office; Heitman/JMB and RREEF for apartments, industrial, retail and office; J.P. Morgan and Jones Lang Wootton for office; MIG and Sentinel for apartments; and The O'Connor Group for retail.
The allocations will be funded from cash.
City of Sacramento
SACRAMENTO, Calif. - The City Council of Sacramento approved retaining ICMA Retirement Corp. as exclusive manager for its $68 million 457 plan, said Michael Medema, assistant city treasurer.
The five-year contract is effective Oct. 1. ICMA had shared duties with First Interstate Bank of California. Both firms offered bundled services. Giving ICMA the exclusive contract will save the city $125,000 a year.
Sears, Roebuck & Co.
CHICAGO - Sears, Roebuck & Co. hired Chase Global Securities Services, a division of Chase Manhattan, as master trustee for its $1.6 billion defined benefit pension plan. Chase will provide global custody, securities lending, benefit payments and performance measurement services to the plan. Chase replaces Bank of America, whose trust and custody operations were sold to Bank of New York.
Security Benefit Group
TOPEKA, Kan. - Security Benefit Group of Cos. named subadvisers for two new mutual funds and four new investment portfolios for its variable annuity and variable universal life products.
Meridian Investment Management and Templeton Quantitative Advisors will subadvise asset allocation portfolios for both products. The portfolios will invest in seven asset classes. A managed asset allocation portfolio for the variable products, a more conservative fund, will be subadvised by T. Rowe Price Associates. The firm also will subadvise an equity income portfolio for both products.
AUSTIN, Texas - The $11.5 billion Texas Permanent School Fund hired its first three outside asset managers to oversee about $1 billion of the fund's assets in a core global balanced approach.
Carlos Resendez, chief investment officer, said the fund hired Capital Guardian Trust Co., Wellington Management Co. and Harbor Capital Management Co. He said allocations to each manager have yet to be determined pending completion of contract details.
According to CIO Philip Halpern, Townsend "did an excellent job, and the decision (to hire another firm) was difficult. But PCA was selected for its strategic perspective."
In addition, the fund decided to make a $25 million commitment to Hancock Venture Partners for private equity investments outside of the United States.
The fund also decided to terminate Zevenbergen Capital, which had been managing a $15 million account of U.S. growth stocks.
The money will be distributed among the fund's other equity managers.
The Washington state board also renewed its contract with Brinson Partners to serve as the fund's alternative investment consultant.
Pending agreement on a contract, Brinson Partners will have another 31/2-year term.
West Haven Police
WEST HAVEN, Conn. - The $5 million City of West Haven Police Pension Plan hired Segal Advisors as consultant to update its investment policy, conduct an asset allocation study and measure the performance of its money managers, confirmed Tom Hamilton, director of finance.