CHICAGO - The $1.3 billion pension fund of the Blue Cross & Blue Shield Association hired Institutional Property Consultants as its real estate consultant. The Townsend Group previously served as the pension fundTownsend Group previously served as the pension fund's consultant.
Kim Suchy, investment manager for the plan, confirmed the IPC hiring, but declined to go into details about the fund's relationship with Townsend.
Officials with IPC declined to comment.
Townsend officials didn't return telephone calls by press time.
SAVANNAH, Ga. - The $3 million 401(k) plan and $2 million profit-sharing plan at Colonial Oil Industries Inc. hired First Union National Bank of Georgia for bundled services, effective Oct. 1.
The bank will provide daily valued record keeping, trust and administration, and employee communication and investment education.
The plan will offer six investment options, including the First Union Stable Investment Fund, and two options from First Union's Evergreen family of mutual funds. Two funds from Fidelity Investments will also be offered - the Contra and Puritan funds - as well as the Templeton Growth Fund.
The plan previously was valued on a quarterly basis and used an unbundled service approach, said Frank Brown, vice president of finance. The former record keeper was Godwins, Booke & Dickenson. Three investment options - an equity, money market and balanced fund - were offered by a separate investment manager, which Mr. Brown declined to identify.
The search was conducted internally.
SALEM, Mass. - The $85 million Essex County Retirement System hired MetLife and L&B Real Estate Counsel as its first real estate managers, said Cynthia Kendall, chief executive assistant. The hirings are the result of an asset allocation study conducted by consultant Segal Advisors.
Of the $5 million allocated to real estate, MetLife will get $2 million and L&B will get $3 million.
NASHVILLE, Tenn. - The $60 million Genesco Inc. defined benefit fund hired Vanguard Group to run a short-term corporate bond portfolio with a duration of three years or less, said Matthew N. Johnson, assistant treasurer.
Vanguard was assigned $6 million.
Funding came from cash and ending an in-house fixed-income portfolio.
Genesco also hired two managers for its $35 million 401(k) plan.
The plan added Weaver C. Barksdale & Associates to take over management of an in-house managed portfolio of GICs. In addition, it added Dodge & Cox to run a balanced portfolio, the first offered by the plan.
Carter Advisory Services and LCG Associates assisted in the searches.
VALDOSTA, Ga. - Griffin Corp. hired First Union Bank of Georgia to provide daily valued, bundled services for its $11 million 401(k) plan. First Union will provide investment management, record keeping, trust, administration, and employee education and communication services.
Fourteen diversified mutual funds, managed by First Union and alliance partners, will be offered.
The plan previously was administered internally and was unbundled, with a local CPA firm providing quarterly record keeping, said Carl Shelburne, director of corporate development. Eight mutual funds from a variety of managers were offered.
HOUSTON - Hermann Hospital, with $230 million in combined pension and endowment funds, revamped its manager lineup through the hiring of eight money managers following an asset allocation and investment policy review.
According to a hospital spokesman, Hermann hired River Oaks Trust as its new trustee. Fixed-income managers are Smith, Graham; Barrow, Hanley, Mewhinney & Strauss; and Investment Advisers Inc. Duff & Phelps Investment Management will manage short-term cash.
New equity managers are Austin, Calvert & Flavin; J&W Seligman; and Harbor Capital Management. The international equity manager is Marvin & Palmer Associates Inc. Merrill Lynch Consulting Group, Houston, assisted.
The spokesman did not specify amounts each manager would receive, but said the target asset allocation is a mix of 40% equities, 40% fixed income and 12% international, with the balance in cash.
The spokesman declined to name the hospital's previous managers.
OMAHA, Neb. - Electrical Workers IBEW Local 22 has hired First National Bank of Omaha as its first master custodian, said Ron Miller, plan administrator.
The fund also selected Vanguard to provide record keeping and investment options for its $20 million money purchase plan, which is being converted to a self-directed plan. Vanguard will offer record keeping and self-directed investment options, replacing the previous internally managed program using annuities.
Asset Consulting Group assisted in both searches.
Asset Consulting recently begun an asset allocation study for the fund's $21 million defined benefit plan that is expected to be ready later this year.
DULUTH, Minn. - The roughly $200 million pension fund of Minnesota Power & Light Co. has made a $5 million investment in the Emerging Markets Growth Fund managed by Capital International. The allocation represents the fund's first emerging markets investment.
Hewitt Associates assisted, said Patrick Cutshall, an investment analyst for Minnesota Power.
BOSTON - The approximately $200 million endowment of the Museum of Fine Arts hired six money managers to make its first move into international investing, said Thomas W. Fitzgerald, director of finance and comptroller.
He confirmed the fund's initial allocation to international will be about 15% of assets, but he won't release the manager names until October.
BALTIMORE - The $429 million NFL Bert Bell/Pete Rozelle Players Retirement Fund hired Peachtree Asset Management and Sturdivant & Co. to each manage a $10 million equity portfolio, said Sarah Gaunt, fund administrator.
Sturdivant will manage a large-cap value portfolio; Peachtree, large-cap growth portfolio, said Ms. Gaunt.
Funding will come from reducing the portfolios of some existing managers, said Valerie Cross, a spokeswoman in the investment division. No managers will be terminated.
LAS VEGAS - The $71 million defined benefit plan of Nevada Power Co. hired INVESCO Capital Management for a $26 million fixed-income portfolio.
INVESCO will replace The Dreyfus Trust Co., said Steven Rigazio, chief financial officer.
Nevada Power decided to change managers because the portion of Dreyfus managing its account had been acquired by Mellon Bank, and the portfolio managers had left, he said.
ROCHESTER, N.Y. - The $240 million Rochester Institute of Technology endowment hired Newport Capital Advisors for consulting, said William M. Dempsey, vice president-finance and administration.
The endowment dropped Wellesley Group.
Mr. Dempsey said Newport will be doing performance evaluation and other projects, although it isn't undertaking any specific studies at this time.
WASHINGTON - The $410 million endowment of the Smithsonian Institution hired PrimeCAP Management and Wellington Management to initially manage $25 million each in large-cap domestic equities, said Sudeep Anand, treasurer.
The hirings resulted from an asset allocation study conducted about 18 months ago that recommended the endowment put more of its money into equities in order attain the 5.5% overall annual desired rate of return.
Funding for the new managers came from reducing the balanced portfolios managed by Miller Anderson & Sherrerd and Fiduciary Trust, he said. The two firms still manage a total of about $260 million.
The asset allocation study recommended the endowment raise its equity allocation to 70% - 40% in large-cap domestic equities, 20% in international stocks and 10% in small-cap domestic stocks. The remaining 30% would be invested in bonds - 24% in domestic and 6% in foreign bonds. The previous asset mix was up to 60% stocks and the rest in bonds.
The Smithsonian still hasn't decided whether to hire new bond managers.
Cambridge Associates assisted.
PITTSTON, Pa. - Transcontinental Refrigerated Lines Inc. hired Prudential Defined Contribution Services to provide bundled services for its $2.7 million 401(k)/profit-sharing plan.
TRL employees will be offered investment choice for the first time, with seven diversified mutual funds, managed by Prudential, together with a Prudential-managed GIC fund. Prudential will provide daily valued record keeping and administration, trust services and employee education and communication.
TRL previously used PNC Bank for quarterly record keeping and investment management, said Mary Ann Edmunds, the plan administrator.
VISALIA, Calif. - The $298 million Tulare County Employees' Retirement Association hired State Street Global to manage a $70 million domestic stock index portfolio, said Katie Romero, retirement administrator.
Funding came from terminating Sirach Capital Management.
About $45 million of the State Street allocation eventually will be reallocated to midcap domestic stocks.
Meanwhile, the fund will interview finalists Sept. 12 and 13 for two money manager positions - a global bond manager for roughly a $50 million allocation and a core U.S. bond manager for a $50 million to $55 million allotment, she said.
Funding will come from an approximately $100 million bond portfolio run by , which will be terminated, Ms. Romero said.
CHARLOTTE, N.C. - United Dominion Industries, Charlotte, N.C., hired American Express Institutional Services for bundled services for its approximately $100 million 401(k) plan.
American Express Financial Advisors will manage five of the seven new investment options; Templeton manages an international equity fund and there's a company stock option.
American Express Institutional will provide record keeping, administration and employee education and communications.
United Dominion consolidated its quarterly valued 401(k) plan with that of a newly acquired company, Marley Group of Cos., to create a single, daily valued plan, said Timothy Verhagen, a spokesman.
United Dominion had been using a bundled program from Marshall & Ilsley Bank, Milwaukee; Marley used American Express, but offered only five investment options for its daily valued plan.
OLYMPIA, Wash. - The $19.7 billion Washington State Investment Board hired three separate account real estate advisers to invest a total of $400 million in property, said Jeffrey Habersetzer, senior investment officer.
The board hired TA Associates, AMB Institutional Realty Advisors and Lowe Enterprises Investment Management Inc., according to Mr. Habersetzer.
TA will invest in apartments, offices, shopping centers and industrial properties; AMB will make investments in industrial and retail properties; Lowe will invest in retail, offices, hotels and distressed debt.
AMB will receive an initial allocation of $100 million; the other advisers will receive $75 million each, said Mr. Habersetzer. The balance of the commitment will be allocated based on the performance of the initial investments.
The money to fund the managers is coming from a combination of cash, earnings and contributions, said Mr. Habersetzer.
KANSAS CITY, Mo. - Western Auto Supply Co. will move Oct. 1 to a daily valued, bundled operation for its $80 million 401(k) plan, said Jackie Elrod, company spokesman.
Western Auto hired American Express Institutional Services for most investment management, as well as record keeping, trust, administrative and employee communication and education services.
Three mutual funds from American Express Financial Advisors will be offered - an S&P 500 index fund, a balanced fund and a domestic growth equity fund - as well as an international equity fund from Templeton.
American Express Trust will manage Western Auto Supply's GIC portfolio.
Bankers Trust previously managed two investment options, a diversified equity fund and an indexed equity option, and provided trust services. PRIMCO managed the GIC portfolio. Benefit Services Corp. was the record keeper.