CHICAGO - Akzo Nobel Inc. hired Hewitt Associates to provide bundled services through an alliance for its revamped $285 million 401(k) plan, said Jamie Arndt, savings plan specialist.
The plan moved to daily valuation from monthly and to daily account transfer capability from quarterly. Akzo Nobel added four new asset classes - growth and income equity, balanced, OTC emerging growth equity and international equity - to the plan using funds from American Capital, Neuberger and Berman, Putnam and Templeton, bringing the total number of options to nine.
Two existing funds from Vanguard were replaced by funds from other vendors with similar investment strategies.
Two other options will be carried over to the new plan. The Vanguard Windsor fund will be frozen to new contributions and dropped in June next year, said Ms. Arndt, reducing to eight the number of options available for participant investment.
The plan's previous record keeper was Buck Consultants.
Catholic Health Corp.
OMAHA - The $125 million retirement fund of Catholic Health Corp. hired Cohen, Klingenstein & Marks for a $10 million large-cap growth stock portfolio. Paul Klinck, the organization's treasury services director, said funding came from reducing the portfolio of another growth stock manager he wouldn't name.
MINNEAPOLIS - The $72 million pension fund of Donaldson Corp. hired Putnam Investments and Lincoln National Life to manage international equities in commingled funds. Each manager will get about $5.5 million. Lincoln National Life uses Walter Scott & Partners as the adviser for its commingled fund.
Assets came from the termination of an unnamed fund of funds, said Roy Vodovnik, corporate secretary of Donaldson.
GREENSBORO, N.C. - GEC-USA selected Twentieth Century Services for record keeping and investment services for its $150 million defined contribution plan, said Larry Rappaport, president of Greensboro Associates Inc., a GEC subsidiary that provides beneficiary services.
Twentieth Century was selected because of its bundled approach, said Mr. Rappaport.
In addition to four Twentieth Century funds, participants will also have a choice of Fidelity Magellan, an option retained from the old plan; and Bankers Trust Stable Value, a new one.
Record keeping was previously handled by Godwins Booke & Dickenson. Previous investments included a GIC managed by MetLife; Investment Corp. of America's Balanced Fund; and the Twentieth Century's Select Fund, which is no longer an investment option.
PITTSBURGH - Heritage Trust Co. selected Fidelity Advisors funds as the investment manager and Benefit Services as record keeper for a new bundled 401(k) product Heritage is offering to plans with less than $15 million in assets and fewer than 1,000 participants, said David Cullen, president.
Houston Municipal Employees
HOUSTON - The $725 million Houston Municipal Employees Pension Fund hired Wilshire Associates as its new consultant. Wilshire replaces Callan Associates, the other finalist, for the three-year contract, according to David L. Long, executive director.
One of Wilshire's first tasks will be to review the Houston system's international equity allocation, now about 22% of the fund's assets. He said the fund may be interested in restructuring and adding a Japan-only equity portfolio at some point.
Los Angeles City
LOS ANGELES - The $4.5 billion Los Angeles City Employees' Retirement System selected Pathway Capital Management as its alternative investment consultant, beating out eight other consultants for the job. Fund officials said they haven't developed a new alternative asset strategy as yet.
Los Angeles County
LOS ANGELES - Trustees of the $15.5 billion Los Angeles County Retirement Association approved the selection of Mellon Bond Associates to manage the pension fund's $36 million Retirees' Health Insurance Excess Cash Reserve Account, said Joseph Carieri, senior investment officer. The money had been managed by the system's two health insurance providers.
Trustees also voted to grant a temporary extension to terms of Chancellor Capital Management's alternative investment contract, pending completion of the investment staff's review of the firm.
Maryland State Retirement
BALTIMORE - The $18 billion Maryland State Retirement System doubled its allocation to international bonds, said Peter Vaughn, executive director. The fund added $225 million, assigning it to one of its existing managers, Strategic Fixed Income. The new allocation will be funded by cash flow.
BOSTON - The Massachusetts Bay Transportation Authority has hired Scudder Defined Contribution Services to provide a fully bundled service, including record keeping, administration, communication and education as well as most investment options, for its $5 million 401(a) plan, according to Al DiGregorio, controller and assistant treasurer.
The options are six Scudder funds and two outside funds: Twentieth Century Value and Neuberger & Berman Focus Trust. Buck assisted.
The former provider was The New England.
NEW YORK - Merrill Lynch has selected Flagship Financial to manage private accounts for clients of Merrill Lynch Consults service.
In the program, a Merrill financial consultant sets investment goals for clients, who are individuals with $250,000 or more. Flagship joins several investment managers offering tax-free fixed-income portfolios under the program.
Flagship started in 1978 as the money management division of the Mead Corp. It runs $4.5 billion in 30 mutual funds.
Missouri State Employees
JEFFERSON CITY, Mo. - The $2.7 billion Missouri State Employees' Retirement System decided to hire Silchester International Investors, London, as an international equities manager, contingent on fee negotiations and results of further due diligence on the firm. A final decision is expected within about two weeks. The account size would be 7.5% of the fund's total assets, or roughly $203 million when fully funded, said CIO Rick Dahl.
New York City Police
NEW YORK - The $8.7 billion New York City Police Department Pension Fund added IDS Advisory Group and Loomis, Sayles & Co. as active growth stock managers, said Jon Lukomnik, deputy comptroller for pensions at New York City. The two new managers will get about $100 million each. Portfolios of the fund's two incumbent growth stock managers - Fidelity Management & Research and J&W Seligman - will be reduced to fund the new hires.
Two other New York City funds -the $23.8 billion New York City Employees' Retirement System, and the $3.5 billion New York City Fire Department Pension Fund - also will redo their growth stock manager lineups, he said. "This is a routine, periodic manager search. It wasn't prompted by anything other than the passage of time," Mr. Lukomnik said.
Old Point National Bank
HAMPTON, Va. - Old Point National Bank named Fidelity Investments its primary provider of stock and money market mutual funds for discretionary trust accounts. Initially the firm will run more than $10 million. The assets had been managed by SEI and Federated.
Federated still runs the vast majority of the bank's $40 million in fixed-income mutual funds, according to Frank Continetti, vice president and trust officer.
Pennsylvania State Employes
HARRISBURG, Pa. - The $14 billion Pennsylvania State Employes' Retirement System hired Fischer, Francis, Trees & Watts to manage a $200 million international fixed-income allocation. The assets came from a commercial mortgage allocation managed by Legg Mason Capital Management, Baltimore, which was not terminated. Rogers, Casey assisted.
FORT SASKATCHEWAN, Alberta - The C$16 million Sherritt Inc. (U.S. $11.7 million) defined contribution plan for salaried employees hired two managers and dropping two others and moved to five investment options from two for the employee-directed fund effective June 30, said Peter Bonyun, treasurer.
The move anticipates the addition of more employees from an acquisition that will more than double the fund's total assets.
Sherritt hired RT Capital Management to run three new funds: a Canadian equity fund, a money market fund and a non-U.S. international equity fund. RT also will run an existing bond fund, replacing Beutel Goodman as manager.
Sherritt also hired Integra Capital Management to run an existing balanced fund, replacing Gryphon Investment Counsel. Gryphon will still play a role in the management as a subadviser. Integra, a manager of managers, uses Gryphon, along with UBS International, Brinson Partners and Lincluden Management, to run its balanced fund.
Sherritt is waiting approval from authorities to add defined contribution fund employees from a fertilizer division it acquired from Imperial Oil Ltd., Toronto. Those employees will transfer C$22 million to the Sherritt fund, bringing its total assets to C$38 million.
In addition, the company hired Integra Capital Management as its sole manager to run a balanced portfolio for its $24 million defined benefit plan for salaried employees.
Integra replaces Beutel Goodman and Gryphon Investment Counsel. Buck Consultants assisted in the searches.
TAUNTON, Mass. - The $45 million Taunton Contributory Retirement System hired Apodaca-Johnston Capital Management to run about $4 million in small-cap equities, said Paul J. Slivinski, executive secretary.
The fund also is examining ways to boost its allocation to real estate to between 5% and 7% of assets within the next six months, up from about 3%, Mr. Slivinski said. The fund has $1.8 million invested in Lehndorff and Babson Property Fund IV, and will look at REITs and other commingled vehicles, he said.
TORONTO - Thomson Newspapers Corp. hired three managers and dropped two others for its Canadian pension fund, said Michael Duty, secretary-pension fund committee. The fund is estimated to total more than C$130 million (U.S. $95 million).
Thomson hired Putnam Investments, assigning it 20% of the fund to run in international equities, including U.S. stocks.
It also hired Dunstan Wachell Capital Management to run Canadian fixed income and Goodman & Co. to run Canadian equities. The amounts weren't immediately available.
The fund dropped Knight Bain Seath & Holbrook Capital Management and Sun Life Investment Management. TPF&C, Toronto, assisted in the changes.