SEARCHES & HIRINGS
Trustees of the $15 billion Pennsylvania State Employes' Retirement System, Harrisburg, voted to allocate a total of $900 million to five international regional stock managers, said a spokesman for the pension fund. J.P Morgan Investment Management will receive $300 million for a Japan-only portfolio: GAM Institutional and TCW Asia will split $300 million and will manage Pacific Basin ex-Japan portfolios; and Marathon-London and Scottish Widows Investment will split $300 million and will run European equities. The money will come from a reallocation from other asset classes and cash. Rogers Casey assisted with the search, said a spokesman.
The $14.9 billion Tennessee Consolidated Retirement System, Nashville, has selected most of the international equities managers it is seeking in its decision to move its foreign stock holdings to external managers. The fund now has invested about $775 million in non-U.S. stocks, but it can invest up to 10% of assets in this category. Tennessee has hired Putnam Investments for European value stocks; Walter Scott and Marathon-London for European growth stocks; Putnam and J.P. Morgan for Pacific Basin value stocks; and G.T. Capital and Newgate for emerging markets. The fund has not yet filled its Pacific Basin growth stock opening, said CIO Charles Webb. The fund hasn't decided exactly how much each manager will receive. But to start, allocations to each of the European and Pacific Basin categories will be about $175 million each; the overall emerging markets category will be smaller, roughly $100 million.
Making its first move to the area, the $101 million pension fund of R.L. Polk Co., Detroit, hired Chancellor Capital Management for tactical asset allocation, said Gary O. Puvalowski, vice president and treasurer. Chancellor will run $15 million, which should be funded by the end of the year. Chancellor will shift its portfolio tactically among equities, fixed income and cash. The move is part of a strategy to reduce risk by reducing its equity allocation by $25 million before year end, funding Chancellor and also moving $10 million to existing fixed-income managers.As a result of the changes, the fund will have $56 million in fixed income, $30 million in equities and $15 million in TAA. Allocations are being reduced among equity managers. Hartland & Co. assisted. The $71 million Gettysburg (Pa.) College endowment shifted almost half of its assets, hiring two managers, reallocating assets among four existing managers and dropping two managers. Michael S. Malewicki, associate vice president for administration and assistant treasurer, said Miller Anderson & Sherrerd was hired for a $19 million value equity portfolio. The endowment also gave The Common Fund $2 million for emerging markets and $3 million for a REIT. In addition, the endowment increased Frontier Capital Management's two existing portfolios - small- and large-cap stocks - by $5 million. It increased its allocation to The Common Fund's international equity fund by $1 million, and its fixed-income portfolios with PIMCO and Standish Ayer & Wood by $600,000 each. Money for most of the changes came from dropping Dauphin Deposit Bank, which ran a $16 million balanced fund, and Luther King Capital Management, which ran $14 million in diversified equities. Hewitt Associates assisted in the changes. Local 25 of the International Brotherhood of Teamsters, Chauffeurs and Warehousemen, Charlestown, Mass., added a supplemental retirement plan option that includes a 401(k). Massachusetts Financial Services will run four mutual funds for the plan; the Teamsters' credit union will manage a short-term cash fund. PFS Investments, a subsidiary of Primerica, will handle employee education. KPMG Peat Marwick will handle record keeping and administration