The $2.8 billion Missouri State Employees' Retirement System, Jefferson City, adjusted its $1.4 billion domestic equity portfolio to favor smaller companies and to shift from a growth bias to value bias, said Gary Findlay, executive director.
The fund terminated three active equity managers and gave the money to five other incumbents. Terminated were Independence Investment Advisors, Chancellor Capital Management and Montgomery Asset Management. Managers getting more money are SENECA, Woodford Capital Management, Capital Guardian Trust, Investment Advisors Inc. and Kennedy Capital Management.
The fund also terminated a midcap core index fund from run by Wilshire Associates, which was allocated 16% of the fund's domestic equity assets. It allocated 19% to a midcap value index fund run by Wilshire. The fund also increased allocations to Wilshire's large-cap growth and value index funds from 3.5% and 10.5% of domestic equities, respectively, to 13% each. Assets came from a reduction in the allocation to an S&P 500 index fund managed by GAMCO Investors from 35% of the portfolio to 20%.
SunGard Data Systems Inc. is one of the companies interested in buying SEI Capital Resources, sources said. Rick Tarbox, SunGard's vice president of corporate development, said SunGard is an acquisitive company, but he would not comment on any possible bids.
SEI's investment banker, Donaldson, Lufkin & Jenrette, had asked for expressions of interest from potential bidders by Aug. 11 and did receive some, from which it hopes to cull a short list, said Geoff Stern, managing partner of DLJ. He added he expects an announcement before the end of the quarter.
The process has produced "a very diverse and qualified list of bidders," said SEI Capital Resources President Charles Marsh. Neither Messrs. Stern or Marsh would identify the bidders. One former SEI consultant said "it boils down to who's willing to pay what." Some sources said there were no SEI competitors among the bidders.
The $450 million Massachusetts State Carpenters Pension Fund, Wilmington, lifted its ban on using Putnam Investments as a manager. In March, the fund pulled a $20 million equity portfolio from Putnam because it had used non-union labor on two construction projects.
Martin J. Ploof, chairman of the fund, said Putnam has since affirmed its goal of constructing all of its facilities on a union-only basis and has demonstrated how hard it would work to support the goals of union labor. As a result, Putnam would be included in future manager searches, Mr. Ploof said.
The $8.4 billion Mississippi Public Employees' Retirement System, Jackson, boosted its allocations to U.S. and international stocks.
The fund gave additional international equities allocations of $40 million to Lazard Freres, $10 million to Brinson Partners and $10 million to Scudder Stevens & Clark. All are existing managers. Earlier, it gave an additional $70 million in domestic midcap equities to Denver Investment Advisors.
The moves bring the fund's international equity allocation to about $750 million and its U.S. equities total to $3.6 billion.
Mississippi also terminated Dreyfus Management for a $140 million domestic fixed-income portfolio.
Assets will be divided roughly equally between existing passive bond managers Wells Fargo Nikko and Mellon Bond Associates, said Eddie Vandiver, deputy director.
Trustees of the $18.8 billion Virginia Retirement System, Richmond, approved investing up to $175 million in two alternative investment funds - up to $75 million in OCM Opportunities Fund, a distressed securities fund, and up to $100 million in Welsh, Carson, Anderson & Stowe VII, a telecommunications and health-care fund, said Bill Sullivan, spokesman.
The fund has allocated 15% of its assets to private equity, but had invested only 6.8%.
Trustees also gave Lehman Brothers the green light to analyze the four offers for VRS' real estate affiliate, RF&P Corp., or to contact other prospective buyers. Lehman also will evaluate offers for parts of RF&P, if any.
A just-completed study of the $6.7 billion Nevada Public Employees Retirement System, Carson City, challenges the fund to be slightly less conservative in its asset allocation, such as by raising its equity exposure.
The fund has 40% of its assets in equities, 50% in fixed income and 10% in real estate, said Laura Wallace, investment officer.
Overall, though, the study by Bear Stearns Fiduciary Services found the fund is run well and is in good order, Ms. Wallace said.
The fund plans to start an asset/liability study in September and a manager/structure analysis within the next two years. Both had been planned prior to the Bear Stearns report.Texas fund taps Wellington
The $1.2 billion Texas Workers Compensation Insurance Fund, Austin, shifted a $10 million fixed-income portfolio formerly managed by Cisneros Asset Management to Wellington Management, said Terry Frakes, senior vice president. Cisneros closed its doors on Aug. 13.
The allocation to Wellington may be temporary, pending any changes that result from a recently completed asset allocation study.
The $140 million pension fund of the Ironworkers District Council of New England, Boston, hired Heartland Advisors as a micro-cap value manager, said Hugh Shaw, director of investments. He wouldn't disclose the size of the allocation.
"We just wanted to further diversify our management styles, plus we think the smaller-cap stocks should do somewhat better looking ahead in the next two or three years," he said.
Part of Heartland's funding came from reducing allocations to two other managers; Mr. Shaw wouldn't identify the firms. The remainder came from cash and an in-house equity allocation that was reduced.
M. Fraser Blakely joined G.T. Capital Management as vice president-institutional marketing in Canada. He left Baring Asset Management earlier this year, where he was senior vice president-marketing.
Two other marketers will be added in the United States.
InterCoast Investment Group acquired a 50% interest in Founders Trust, a state-chartered trust company in Texas. InterCoast was formed to acquire midsized investment management firms. Founders, its first acquisition, has about $300 million under management.
Strategic alliance formed
Bankers Trust has formed a strategic alliance with Amalgamated Banks of South Africa to provide international and domestic securities processing for ABSA clients. ABSA clients also will gain access to Bankers Trust's products, including performance measurement. ABSA clients have about 90 billion rands ($15.8 billion) in assets under custody.
Victor Gallo, formerly executive vice president at PRIMCO Capital Management, joined Jackson National Life as an executive vice president. He has not yet been replaced at PRIMCO. Mr. Gallo will help Jackson enter the GIC market.