The $410 million endowment of the Smithsonian Institution, Washington, hired two international stock managers and has conducted preliminary interviews of bond managers, said Sudeep Anand, treasurer. Warburg, Pincus Counsellors and Rowe Price-Fleming International will be allocated up to $25 million each for international equities. Funding will come from reducing allocations to balanced managers Miller Anderson & Sherrerd and Fiduciary Trust.
The investment committee will decide by early March whether to hire any bond managers, and if so, how much to allocate to them. ``It's something that's nice to have but not necessary,'' he said. The Smithsonian has exposure to bonds through its balanced managers.
Shell Austria A.G., Vienna, switched to a funded pension plan from a book-reserve system, picking three managers and a custodian to run its 2 billion schilling ($210 million) in assets.
Creditanstalt AG's asset management unit, Osterreichische Investmentgesellschaft, will manage the fund's Austrian stock and bond portfolios and overseas bond portfolio. Capital International and Schroder Investment Management will manage the fund's international equity allocation. The size of the portfolios was not disclosed.
Creditanstalt was named custodian; Chase Manhattan Bank is subcustodian, handling international securities.
The $1.2 billion Milwaukee County Employees' Retirement System funded a $5 million core equity assignment for Ariel Capital Management, said Jac Amerell, director. Also, NCM Capital Management was given $5 million to manage in a core fixed-income strategy, Mr. Amerell said. Both hires were part of Milwaukee County's policy of hiring minority firms, but no minority-owned firm searches are planned in the near future. William M. Mercer assisted.
The $32 million 401(k) plan of Hines Interest L.P., Houston, hired T. Rowe Price Associates to provide fully bundled services, including 10 investment options, record keeping and communications. The plan has 800 participants. Previously, the fund used unbundled services, with Smith Barney serving as trustee and Arthur Andersen as record keeper. The names of the other vendors could not be learned. The fund also moved to daily valuation from quarterly.
CORRECTION: P&I Daily incorrectly reported yesterday that the Mississippi Public Employees Retirement System is looking for a REIT manager. Eddie Vandiver, deputy director of investments, said the fund is allowed to invest up to 5% in real estate, but it does not have plans to invest in the near future.