Alston & Bird
ATLANTA - Alston & Bird, a law firm, hired First Union National Bank of Georgia to provide bundled plan services for its 401(k)/profit-sharing plan. The new plan should be operational by the end of March.
The plan will provide 12 mutual funds as investment options, including funds from First Union's Evergreen family of mutual funds. A range of funds managed by outside mutual fund families also will be available via First Union's mutual fund alliance.
First Union will provide daily valued record keeping, trust and administration services, automated voice-response systems and employee education and communication. Yanni Bilkey Investment Consulting assisted.
An Alston & Bird spokesman would not identify the previous providers or the plan size.
Archdiocese of Los Angeles
LOS ANGELES - The Roman Catholic Archdiocese of Los Angeles hired Fortaleza Asset Management to run $5 million in small-cap equities, following an emerging manager search, said the fund's consultant, Larry Davanzo, managing director for Asset Strategy Consulting. The assets are a part of the archdiocese's $300 million in operating capital.
He said the hiring resulted from the termination of Galleon Capital Management, which closed following an SEC investigation.
Ashland Coal Co.
HUNTINGTON, W.Va. - The $25.5 million defined contribution plan of Ashland Coal Inc. hired Twentieth Century Services for record keeping and investment services, confirmed Roy Layman, administrative vice president.
Participants will have a choice of seven Twentieth Century funds, Bankers Trust Stable Value Government Trust, Wells Fargo Equity Index and Ashland common stock.
Keycorp formerly provided record keeping, said Mr. Layman.
Contra Costa County
CONCORD, Calif. - The $1.7 billion Contra Costa County Employees' Retirement Association hired Prudential Timber Investments to handle a $15 million timber allocation.
The assets came from cash, said Patricia Weigert, retirement administrator. Dorn Helliesen & Cottle assisted.
Ernst & Co.
NEW YORK - Ernst & Co. hired Koeneman Capital Management to serve as subadviser managing the new Ernst Asia Fund.
National Mutual Funds Management also was hired as subadviser managing the new Ernst Global Resources Fund.
Everett Retirement System
EVERETT, Mass. - Trustees of the $35 million Everett Retirement System voted to increase venture capital investments in the New England Growth Fund II by $1.25 million, said Ann Fournier, executive director. The system currently has $500,000 in the fund. The money will come from city contributions.
Florida State Board
TALLAHASSEE, Fla. - The $50 billion Florida State Board of Administration hired Barnett Banks Trust to manage $25 million in small-cap growth equities; LBS Capital Management, $25 million in quantitative midcap; and Private Asset Management, $25 million in domestic equities. Also, Carl Domino Associates and Haven Capital Management each got an additional $25 million, bringing the total each manages for the fund to $35 million. Funding came from cash flow.
NORTHBROOK, Ill. - Glenbrook Life and Annuity selected A I M Management Group as investment manager of a new variable annuity product, the AIM Lifetime Plus Variable annuity. The product includes nine AIM variable insurance funds and several guaranteed fixed account options.
Los Angeles City
LOS ANGELES - The $4.9 billion Los Angeles City Employees' Retirement System committed $25 million to opportunistic real estate - $10 million to KB Realty and $7.5 million each to DLJ Real Estate Capital Partners and Lowe Enterprises. The commitment to Lowe is contingent on its opportunistic fund being fully subscribed.
The fund also approved a co-investment program for real estate investment with Greystone Realty and committed $5 million. The program calls for co-investment in real estate development opportunities. Townsend Group assisted.
In addition, the system committed $11 million to Oaktree Opportunities Fund for distressed debt. Pathway Capital Management assisted.
Los Angeles Fire & Police
LOS ANGELES - The $6.7 billion Los Angeles Fire & Police Retirement System picked incumbent Alliance Capital as its index manager, said CIO Tom Lopez. Alliance manages $818 million in passive domestic stocks for the fund.
The fund also extended for one year its contract with Boston Co. Asset Management, which runs a $560 million fixed-income portfolio.
Also, the fund will increase its international equity allocation to 9% from 6% of total assets. The money will come from the Alliance portfolio, and will be given to existing international managers.
Maine State Retirement System
AUGUSTA, Maine - The Maine State Retirement System hired Northern Trust as its custodian, replacing Mellon Bank. The $4 billion fund reviewed the custody contract to evaluate current technology, said Claude Perrier, executive director. Ennis Knupp assisted.
Nebraska Investment Council
LINCOLN, Neb. - The Nebraska Investment Council, Lincoln, hired State Street Bank & Trust as custodian for the $1 billion state operating cash fund and approximately $2.5 billion state retirement fund.
The fund wanted to consolidate all custody into "one-stop shopping," said Rex Holsapple, state investment officer. State Street already was serving as global custodian and securities lending agent for $100 million in international assets in the retirement fund; FirsTier Bank served as custodian and Bank of New York was securities lending agent for domestic assets.
Wilshire Associates assisted.
Orange County Employees
SANTA ANA, Calif. - The $2.9 billion Orange County Employees' Retirement System committed $50 million to Pricoa Property Investment Management for investment mainly in Western European real estate. The separate account will hold diversified properties. The portfolio will be funded from cash.
Callan Associates assisted.
Pennsylvania State Employes
HARRISBURG, Pa. - Trustees of the $15 billion Pennsylvania State Employes' Retirement System allocated $75 million to four managers for alternative and venture capital investments, said Nicholas Maiale, board chairman.
The Oaktree Capital Management Opportunities Fund will receive $25 million; Schroder UK Venture Fund IV, $15 million; RRZ Private Equity Fund, $20 million; and Polaris Venture Partners, $15 million.
Funding came from the continued reduction in the fund's fixed-income and cash allocations.
Pennsylvania Tuition Account
HARRISBURG, Pa. - The $44 million Commonwealth of Pennsylvania Tuition Account Program, Harrisburg, hired LaSalle Street Capital Management to manage a $4 million growth equity portfolio, confirmed Michael Daly, a state Treasury Department spokesman. The money will come from new contributions to the program. A.H. Williams & Co. assisted.
DALLAS - Pillowtex Corp. hired Union Bank as plan administrator, record keeper and trustee for its $6.2 million in 401(k) assets, said Fredrick Terry, human resources representative.
For investments, it will use three bank mutual funds known as the Stepstone Funds, and Fidelity Contra, Twentieth Century Ultra and Vanguard S&P 500. Company stock is another investment option.
Union Bank replaces Van Kampen American Capital.
Pillowtex will now offer daily valuation instead of quarterly; quarterly enrollment instead of semiannual; and contributions of up to 15% of salary vs. up to 10% before.
PLYMOUTH, Mass. - The $210 million Plymouth County Retirement System invested $3 million in Charles River Partners VII, and $2 million in Boston Capital Partners' New England Growth Fund, both venture capital funds, said John McLellan, treasurer.
San Francisco City and County
SAN FRANCISCO - The $7 billion San Francisco City and County Retirement System selected Northern Trust as its master custodian pending final negotiations, replacing Bankers Trust. The search was conducted internally with Asset Strategy Consulting.
Southern Medical Association
BIRMINGHAM, Ala. - Southern Medical Association hired Prudential Defined Contribution Services for investment management and education for its $82 million group IRA program. SMA offers Prudential's guaranteed interest account, as well as seven no-load mutual funds. Participants also may choose to invest their assets in almost any mutual fund on the market, said Ken Vinzant, director of fringe benefit programs.
The group IRA program was previously managed by CIGNA Investment and Retirement Services.
NASHVILLE - The $15.3 billion Tennessee Consolidated Retirement System hired Yamaichi Capital for a $175 million to $200 million Pacific Basin growth equities account. The hiring completes the fund's distribution of approximately $800 million of international equities investments to outside managers, said CIO Chuck Webb.
Tennessee had been managing this money in-house.
Callan assisted in the search.
Union Pacific Corp.
BETHLEHEM, Pa. - The $1 billion-plus defined benefit plan at Union Pacific Corp. hired Baron Capital Management for $20 million and Rainier Investment Management for $30 million, both in small-cap equities. A spokesman for Union Pacific said funding came from cash flow and termination of an equity manager he wouldn't name.
NEW YORK - USLIFE Corp. hired American Express Institutional Services to provide fully bundled plan services for its $40 million 401(k) plan. American Express will provide five mutual fund options, daily valued record keeping, trust and administrative services, an automated voice-response service, employee communication and education. An international equity fund, run by Templeton, will be offered, as will a company stock option.
The company previously used a monthly valued plan approach from Bankers' Trust with four investment options, including company stock.
NATICK, Mass. - Waban Inc. hired American Express Institutional Services to provide fully bundled service for its $40 million 401(k) plan, said Annette Zola, a Waban spokeswoman.
Three American Express mutual funds will be offered, as well as an aggressive growth equity fund from Putnam Investments through an alliance. American Express also will administer a company stock fund.
American Express will provide daily valued record keeping, administration, trust and employee communications and investment education. Watson Wyatt had been the record keeper.
Ms. Zola didn't identify the previous investment managers.
Washington State Investment
OLYMPIA, Wash. - The $23 billion Washington State Investment Board hired ICMA Retirement as record keeper and State Street Global Advisors as investment manager for a new defined contribution plan for teachers, said Tom Ruggels, investment officer. ICMA also will provide administration and employee education. State Street will offer a special fund that combines domestic and international equities and fixed income. The plan will be launched in July.