PITTSBURGH - Trustees of the $390 million Retirement Board of Allegheny County picked Crabbe Huson to manage $30 million in large-cap stocks, said Jim Gneccho, consultant at Kalson & Associates, who assisted in the search. Crabbe Huson replaces an unidentified manager that was dismissed some months ago. Glickenhaus and Sasco Capital were the two other finalists in the search.
CINCINNATI - The $18 million Asbestos Workers Local 8 Pension Fund of Cincinnati hired Trust Fund Advisors to manage all of its assets.
Trust Fund Advisors will manage an $8 million value balanced account and a $10 million growth balanced account, said Bill Carter, business manager. The fund will have 60% in equities and 40% in fixed income, he said.
The fund switched to Trust Fund Advisors because other manager contracts had expired, Mr. Carter said. He would not disclose the names of the other managers.
CHICAGO - The $43 million 401(k) plan of the Chicago Board Options Exchange will add two investment portfolios from Fidelity Investments, said Alan J. Dean, first vice president-chief financial officer and corporate secretary.
Effective Oct. 1, the plan will add an index fund tied to the S&P 500 and an investment-grade bond fund.
The additions will bring the plan's total investment portfolios to eight.
Mr. Dean said the additions were made to comply with 404(c) regulations, requiring diversified investment portfolios.
No consultant was used.
El Paso Fire & Police
EL PASO, Texas - The $295 million El Paso Fireman & Policeman's Pension Fund made its first investments in U.S. midcap and small-cap equities, hiring Mellon Capital to passively manage assets in both strategies.
Mellon will run about $35 million in the midcap strategy and about $18 million in small cap.
The fund also increased its allocation to international equities to 19% of assets from 15%, said Janel Lopez, pension administrator. Lazard Freres and Harbor Capital/Julius Baer, the fund's existing international managers, equally split the new allocation.
The fund reduced its large-cap growth and value and fixed-income portfolios to fund the changes.
MCLEAN, Va. - The Federal Home Loan Mortgage Corp. hired Smith Breeden Associates to manage part of its Gold PC portfolio of mortgage-backed securities, which takes advantage of mispricings in the market. The nearly $1 billion portfolio is currently managed by BlackRock Financial Management and Goldman Sachs Asset Management, both of which will remain.
A spokeswoman for Freddie Mac did not disclose the size of each manager's allocation, but she added the agency expects to search for more managers for the portfolio near the end of the year.
Louisiana Education Quality
BATON ROUGE, La. - In its first moves to external management and to equities, the $777 million Louisiana Education Quality Trust Fund hired Vanguard to run $40 million in an S&P 500 index fund, said Jules Nunn, CIO of the Louisiana state treasurer's office.
The fund is in the throes of moving 25% to 35% of assets into equities, all through outside managers. Next up is a search for a consultant to help fund officials with the remainder of the equity searches. The consultant search could begin later this year.
Mr. Nunn said the equity funding will be doled out in increments of 5% to 7% of assets. Until the Vanguard hire, the entire fund was managed in-house, solely in fixed income.
MANCHESTER, Conn. - The $55 million Manchester Retirement Allowance Fund hired its first international equity money managers, allocating nearly 10% of assets to the new asset class. Hotchkis and Wiley and Investment Advisers Inc. will split a $5 million allocation, said Al Desmarais, director of finance.
Trustees decided on two managers instead of one because both managers had equally strong performance, said Mr. Desmarais. Funding will come from cash and contributions.
BOSTON - The $8 billion Massachusetts State Employees and Teachers Retirement System's trust hired Wells Fargo Nikko to run $1 billion in a passive bond fund.
Funding will come from three terminated managers that had been running active bond funds for Masters: Standish, Ayer & Wood; Smith Barney; and PanAgora, as well as from reductions in other active bond portfolios.
The fund also has awarded $380 million to five small-cap domestic equity managers: MFS for $100 million; Lazard Freres, $100 million; Emerging Growth, $30 million; Capital Technology, $50 million; and Target Capital, $100 million. Large-cap stock managers' portfolios were reduced to fund the small-cap managers.
New Haven City Employees
NEW HAVEN, Conn. - Trustees of the $92 million New Haven City Employees' Retirement Fund hired Wyatt Investment Consulting as its investment consultant, said Gwendolyn Bell, pension administrator.
Wyatt was hired as a result of a search. The length of its contract has not been decided, but it won't exceed three years, said Ms. Bell.
Prudential Securities Investment Management Consulting Services Division had been the consultant and was a finalist in the search.
New York State and Local
ALBANY, N.Y. - The $60.6 billion New York State and Local Retirement Systems committed $275 million to two alternative investment limited partnerships, said Cynthia Munk, a spokeswoman for H. Carl McCall, sole trustee of the fund.
The fund committed $125 million to the Thomas H. Lee Equity Fund II and $150 million to the Cypress Merchant Banking Partners fund.
The commitments will be funded from cash, Ms. Munk said.
In another move, the fund farmed out $424 million to one existing domestic stock manager and seven international stock and bond managers, said CIO John Hull.
A low-cap domestic portfolio managed by Wells Fargo Nikko Investment Advisors was boosted by $24.2 million; the adviser managed $1.7 billion for the system prior to the added allocation.
In international equities, the fund allocated an additional $50 million to Schroder Capital Management International, $25 million to Morgan Stanley Asset Management, $75 million to Baring Asset Management, $50 million to J.P. Morgan Investment Management and $100 million to Bankers Trust.
Global bond managers Morgan Grenfell Asset Management and Strategic Fixed Income were allocated an additional $50 million apiece, said Mr. Hull.
Before the additions, Schroder managed about $403 million for the system; Morgan Stanley, about $380 million; Baring, $268 million, J.P. Morgan, $241 million; Bankers Trust, $1.03 billion; Morgan Grenfell, $214 million; and Strategic Fixed Income, about $218 million.
All funding came from cash flow, said Mr. Hull.
New York State Teachers
ALBANY, N.Y. - Trustees of the $41 billion New York State Teachers' Retirement System selected John Hancock Mutual Life and New York Life for its $200 million commercial mortgage co-lending program, said Donald Blaha, a spokesman for the system. The insurers will provide the retirement system with commercial mortgage lending opportunities in the $5 million to $30 million range, said Mr. Blaha.
New York State Teachers will take a position in the loan between 50% and 75%. The insurers will make up the balance.
Ohio School Employees
COLUMBUS, Ohio - Trustees of the $4 billion School Employees Retirement System of Ohio voted to commit $65 million to two open-end real estate commingled funds, said Paul Kubinsky, chief investment officer.
The fund will invest $40 million in the CIGNA Real Estate Fund and $25 million in the Sentinel Apartment Fund, said Mr. Kubinsky.
The money will come from short-term cash, he said.
Old Dominion Freight
HIGH POINT, N.C. - The $20 million defined contribution plan for Old Dominion Freight Line Inc. chose Twentieth Century Services for investment services and record keeping, said Bill Tittsworth, director of employee benefits.
Plan participants will have a choice of four Twentieth Century mutual funds, Bankers Trust's Stable Value Fund and Old Dominion stock.
Investment and record-keeping services had been provided by W.E. Stanley; the plan outgrew the services that W.E. Stanley could provide, said Mr. Tittsworth.
Pennsylvania State Employes
HARRISBURG, Pa. - Trustees of the $14.8 billion Pennsylvania State Employes' Retirement System voted to hire Lord Abbett; Loomis, Sayles; and MacKay-Shields to manage large-cap value portfolios, pending successful contract negotiations, said Nicholas Maiale, chairman of the board.
Lord Abbett will receive an initial allocation of $210 million; Loomis, Sayles and MacKay-Shields will split an initial allocation of $210 million.
The money to fund the managers came from Barrow, Hanley, Mewhinney & Strauss, which was terminated earlier this year because of poor performance of its large-cap value style, said Nicholas Maiale, chairman of the board.
Telephone calls to Barrow Hanley were not returned by press time.
Regional Medical Center
RENO, Nev. - The Regional Medical Center hired Putnam Investments to run $4 million of corporate operating funds in an international equities commingled fund.
Funding came from reducing the allocation to intermediate bonds in the organization's funded depreciation account. No managers were terminated, said Lina Hermann, director of treasury operations.
SEI was the consultant.
St. Louis Employees
ST. LOUIS - The $350 million St. Louis Employees' Retirement System hired Paradigm Asset Management and Morgan Stanley Asset Management, said William Duffe, secretary to the board of trustees. Paradigm will run $42 million in large-cap value stocks; Morgan Stanley, $40 million through its Magnum Fund, an international equity fund.
Paradigm replaces Greaves Capital Management. Morgan Stanley, which will manage the fund's first non-U.S. equity investments, will be funded with assets proportionately taken from incumbent managers.
Service America Corp.
STAMFORD, Conn. - Service America Corp. hired GE Investments to manage and administer its $91 million 401(k) plan. GE will provide investment management, trustee and record keeping and administration services through GE Investment Retirement Services, in conjunction with State Street Bank.
The plan previously was managed and administered by Fidelity Investments.
Alexander & Alexander Consulting Group assisted with the search.
WAYNE, Pa. - SEI Investment Management Group hired Boston Partners Asset Management as a subadviser to manage $150 million in new money as it comes in for the SEI Small Cap Value Fund, confirmed Eric Connerly, investment analyst. Boston Partners' Wayne Archambo will be the manager.
The fund, started in December, is capitalized at $110 million. It is managed by SEI, and marketed to small and mid-sized pension plans, bank trust departments and 401(k) plans.
CHARLOTTE, N.C. - Wrenn/Brungart Inc. hired First Union National Bank of North Carolina for investment management and record keeping for its $29 million 401(k) plan, said James E. Holmes, vice president of human relations.
First Union will provide fixed-income, stable value and balanced fund options, as well as daily-valued record keeping. An INVESCO balanced mutual fund and Fidelity large-cap and midcap funds are the other options.
The Wrenn/Brungart plan was previously valued annually with record keeping from South Trust Bank. The plan had three investment options from vendors Mr. Holmes did not identify.