Chicago Housing Authority
CHICAGO - The Chicago Housing Authority hired a consultant for its $22 million pension fund and has put its search for an outside plan administrator on hold until the consultant gets up to speed.
The CHA hired Becker Burke, which will be conducting an asset allocation study right after Ernst & Young finishes its actuarial study, said Marilyn Johnson, CHA general counsel.
Responses for the outside plan administrator should be due in November.
No due date has been set yet, according to Ms. Johnson.Chicago Public School
CHICAGO - Trustees of the $6 billion Public School Teachers' Pension and Retirement Fund of Chicago made their first allocation to real estate, committing $100 million to three commingled funds, said James Ward, executive director.
The board allocated $35 million to an open-end fund sponsored by J.P. Morgan Investment Management; $40 million to an Equitable Real Estate Investment Management open-end fund; and $25 million to a closed-end fund sponsored by RREEF. All of the funds will invest in core properties, said Mr. Ward.
The fund has a 5% - or $300 million - real estate target.
Mr. Ward said there are no immediate plans to fulfill the real estate allocation.
MILWAUKEE - Gran-Aire Inc. selected Strong Capital Management's retirement plan services division as bundled provider for a new 401(k) plan.
Chris Wodushek, assistant manager, said the plan package offers six diversified Strong funds, daily valuation record keeping, trust and administration, a toll-free voice-response system and employee communications and education.
GETTYSBURG, Pa. - The $71 million Gettysburg 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 real estate investment trust.
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 increased its fixed-income portfolios with PIMCO and Standish Ayer & Wood by $600,000 each.
Funding 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.
FARMINGTON, Conn. - Heublein Corp. hired Oechsle International to run a non-U.S. equity portfolio in an amount to be determined. The firm replaces SEI International, which will be terminated. Callan assisted in the search.
According to Nelson's Directory of Plan Sponsors, Heublein has $200 million in defined benefit plan assets and $121 million in defined contribution assets.
Los Angeles County Transit
LOS ANGELES - Los The Los Angeles County Metropolitan Transportation Authority hired ICMA Retirement Corp. as bundled provider for its $100 million-plus 457 plan and $25 million 401(k) plan, said Raman Raj, director of compensation and benefits.
ICMA already was the manager for the Los Angeles County Transportation Commission's 457 plan, which was merged with the Southern California Rapid Transit District to create a single organization.
Nigel Stephens Counsel
TORONTO - Nigel Stephens Counsel Inc. investment manager of the new $5 million Pursuit Global Equity fund, selected Wright Investors Service to subadvise the portfolio. The fund will invest in non-U.S. and non-Canadian equities.
Pennsylvania Public School
HARRISBURG, Pa. - Trustees of the $30 billion Pennsylvania Public School Employes' Retirement System, Harrisburg, allocated $300 million apiece to IAI International for global equities and Morgan Stanley Asset Management and Yamaichi International Capital Management for Pacific Rim equities excluding Japan, said John Lane, chief investment officer.
Trustees also voted to buy a Maryland apartment building for $20 million, said Mr. Lane. Aetna Realty Investors was the adviser on the deal. Trustees also approved a purchase of raw land in Texas for $1 million, said Mr. Lane. L&B Real Estate Counsel was the adviser.
The money for the investments will come from unallocated cash, said Mr. Lane.
Pennsylvania State Employes
HARRISBURG, Pa. - Trustees of the $15 billion Pennsylvania State Employes' Retirement System 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 manage European equity portfolios.
The money to fund the managers will come from a reallocation from other asset classes and cash.
Rogers Casey assisted with the search.
DETROIT - Making its first move to the area, the $101 million pension fund of R.L. Polk Co. 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 by 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.
He said allocations were only being reduced among equity managers; no manager was being dropped.
Hartland & Co. assisted in the changes.
SAN FRANCISCO - Shaklee Corp. hired Merrill Lynch to provide a full-service package for its $40 million 401(k) plan, beginning Jan. 1.
Five diversified investment options from Merrill Lynch will be offered. Templeton's Overseas Fund, the AIM Value Fund and the MFS Emerging Growth Fund also will be included. One fund from the plan's current fund lineup, the Fidelity Magellan Fund, will be retained. Merrill Lynch will provide daily valued record keeping, administration and trust services, employee communications and investment education, said Margot Lemont, benefits administrator.
The plan had been valued quarterly and offered six investment options in an unbundled approach. Ms. Lemont declined to identify the current plan vendors.
Teamsters Local No. 25
CHARLESTOWN, Mass. - Local No. 25 of the International Brotherhood of Teamsters, Chauffeurs and Warehousemen added a new 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.
Companies may negotiate to provide one of three plan combinations: a 401(k) plan with pre-tax employee payroll deductions with an option to invest on an after-tax basis; an employer-run plan through which a company negotiates to deposit to the trust a cents-per-hour rate for each local member it employs, as well as voluntary after-tax employee contributions through payroll deduction; and a plan that combines 401(k) pre-tax payroll deductions, voluntary after-tax contributions and negotiated contributions by the company. Previously, most union members were covered only by a defined benefit plan.
NASHVILLE, Tenn. - The $14.9 billion Tennessee Consolidated Retirement System 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 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 what size accounts individual managers will receive. But to start, allocations to each of the European and Pacific Basin categories will be about $175 million, while the overall emerging markets category will be smaller, roughly $100 million.
University of Pittsburgh
PITTSBURGH - The $464 million University of Pittsburgh endowment hired Capital Guardian Trust for international equities, said Charles M. Stunkard, director of finance and assistant treasurer.
Capital Guardian was assigned almost $40 million in a separate account to run an EAFE mandate, although it can place up to 20% on a discretionary, opportunistic basis in emerging market equities.
Assets came from dropping The Common Fund, which managed the assets through a commingled international equity fund.
Wilshire Associates assisted in the search.
City of West Palm Beach
WEST PALM BEACH, Fla. - The City of West Palm Beach redesigned its retirement system.
The city introduced a 457 plan and is offering eligible employees the choice to participate in the 457 plan or the city's defined benefit plan. Employees can transfer defined benefit account balances to the 457 plan, in which the city matches dollar for dollar employee salary deferrals up to 7.5%. The record keeper for the new 457 plan is PEBSCO; investment options are provided by the ICMA.
Most of the city's 300 employees transferred their assets to the 457 plan, said Alfredo Lay, a pension trustee for the city.
Before the introduction of the new plan design, the defined benefit plan had $82 million under management, which is now split between the two plans.
Also, Putnam Investments was allocated $10 million of defined benefit assets to manage in a core growth equity program. Assets came from a reduction in the amount allocated to INVESCO, the plan's main money manager, said Mr. Lay.
WHEATON, Ill. - The $145 million endowment of Wheaton College hired BlackRock Financial Management for fixed income and Templeton Worldwide for emerging markets, said Kenneth C. Larson, investment manager.
In fixed income, the endowment initiated a search after its existing fixed-income manager, PNC Bank, acquired BlackRock and gave the new firm its fixed-income management.
"We felt like we were getting a new manager, so we thought we'd look at the competition and do a search," he said.
The endowment assigned BlackRock $22 million, the same amount PNC was running.
Templeton was assigned $1 million in emerging markets equities.
The endowment did both searches without a consultant.