American National Can
CHICAGO - American National Can Co. hired Diversified Investment Advisors to manage an $11 million money purchase plan for its Longview, Texas, facility. Diversified will provide a fully bundled service, including investments in four Diversified collective trust funds, record keeping, communications and administration.
The former providers were LaSalle National Bank and Bankers Trust. The former record keeper/administrator was Metropolitan Life.
Arizona Public Service
PHOENIX - The $460 million pension fund of Arizona Public Service Co. hired two managers, said Jerry White, trust investment administrator.
ANB Investment Management will run a $30 million S&P 500 stock index fund. Alliance Capital Management will run a $20 million large-cap growth stock portfolio.
Assets came from terminating a manager that ran value-style equities. Mr. White declined to disclose the name of the manager. The index manager search was conducted internally; the fund used Callan for the growth manager search.
Arizona Public Service also hired Bank of New York to run its $40 million retiree medical care fund for non-union employees, said Mr. White. Seventy percent of the fund will be run in an S&P 500 stock index fund and 30% in a passive fund designed to match the Lehman municipal bond index.
The fund had been temporarily invested in mutual funds. The company did the search without a consultant.
Battelle Memorial Institute
COLUMBUS, Ohio - The $900 million Battelle Memorial Institute pension fund hired Morgan Stanley Asset Management for a $30 million international equities portfolio, said Damian D. Sung, director-investment management. Assets came from reallocations among other managers, which were all retained.
The change is the result of an asset allocation study, which resulted in raising the fund's international allocation to 10%.
Brookline Retirement
BROOKLINE, Mass. - The $94.7 million Brookline Retirement Board picked Guinness Flight as its first international equity manager, said William Wolf, director-retirement.
Guinness Flight will manage $4.5 million to $5 million. Assets will come from the fund's two balanced managers, State Street Research and Loomis, Sayles, which manage virtually all of the board's assets. Watson Wyatt assisted.
CNA Insurance Cos.
CHICAGO - CNA Insurance Cos. hired Westridge Capital Management and Walsh, Greenwood to manage an enhanced index fund, a new group annuity product.
The Index 500 Plus offers 25 basis points per year over the return of the S&P 500 index, including reinvested dividends. The three-year contract, underwritten by CNA's sister company, Continental Assurance, is aimed at pension funds with $5 million or more to invest in a single deposit.
Diversified Investment
PURCHASE, N.Y. - Diversified Investment Advisors hired Putnam Investments as subadviser for a $100 million growth equity portfolio.
Jim Adams, investment analyst at Diversified, said Putnam replaces a terminated manager he declined to name.
He said the change was based on performance and because Putnam's style offers access to a broader portion of the equity market.
Ferrell Cos. Inc.
LIBERTY, Mo. - Ferrell Cos. Inc. hired Jurika & Voyles to run a large-cap blended growth and value portfolio as a new option for its $40 million 401(k) plan. The option was added to round out the offerings - which range from GICs to aggressive growth stocks - along the risk spectrum, said Dan K. Sheldon, chief financial officer.
Gaz Metropolitain
MONTREAL - Making its first move to specialty management, the C$140 million (U.S.$103 million) Gaz Metropolitain & Co. pension fund hired two managers, reassigned two others, and dropped one, said Edward Doucet, director-compensation and employee services.
Morgan Stanley Asset Management will run 10% of total assets in international equities; Bolton Tremblay will run 35% in a balanced fund, with authority to invest 5% in international securities.
The fund reassigned St. Lawrence Financial Consultants, which had run 10% in a balanced fund, to manage 20% of total assets in domestic fixed income. T.A.L. Investment Counsel, which had run 45% in a balanced fund, will run 35% in a balanced fund, with authority to invest 5% in international securities.
The fund dropped Montrusco Associates, which ran 45% of assets in a balanced fund.
Les Conseillers Optimum, its consultant, assisted in the searches.
H2L2 Architects/Planners
PHILADELPHIA - H2L2 Architects/Planners hired Putnam Investments to provide record keeping, investment management, administration, communication and education for its $350,000 401(k) plan.
Massachusetts Mutual Life was the previous provider.
Hagen Kurth Perman & Co.
SEATTLE - The accounting firm Hagen Kurth Perman & Co. hired Regis Retirement Plan Services to provide fully bundled services for its 401(k) plan, which covers about 40 employees.
The company previously used IPC for administration and record keeping. Investments will remain with Sirach Capital Management, an affiliate of Regis, but with daily valuation and transfers.
Houston Municipal Employees
HOUSTON - The $750 million Houston Municipal Employees Retirement Fund allocated $55 million to small-cap growth stocks; $35 million to John Hancock Funds; and $20 million to Kopp Investment Advisors. Funding is from a reallocation of assets. No existing managers were terminated. Wilshire Associates assisted.
Marshfield Clinic
MARSHFIELD, Wis. - The $75 million Marshfield Clinic 401(k) plan hired two managers to offer new investment options, said Thomas Bauer, plans manager.
Brandywine Asset Management will run an aggressive equities portfolio, and Vanguard Group will run a passive balanced fund of 60% equities indexed to the Wilshire 5000 index and 40% bonds indexed to the Lehman Aggregate Bond Index.
The additions bring the plan's investment options to seven, all run by various managers. Jeffrey Slocum & Associates assisted.
Mercy Health System
CINCINNATI - Mercy Health System hired Putnam Investments to manage about $52 million in growth equities; Miller Anderson & Sherrerd, about $88 million in value equities; and Lincoln Capital, about $105 million in fixed income, all for its $350 million capital improvement fund, said Thomas Steele, director, cash and investments.
All assets had been managed in-house; about $70 million will remain in-house for liquidity and bond covenant purposes, he said.
Mercy also is nearing the end of its search for an international equity commingled fund manager to run 10% of the fund, he said. The Chicago office of Watson Wyatt assisted with both searches.
Michigan Retirement Systems
LANSING, Mich. - The $29 billion State of Michigan Retirement Systems made two private placement investments totaling $3 million, confirmed Barry Stevens, chief investment officer.
The retirement system invested $2 million in GenVec Inc. and $1 million in Sneaker Stadium Inc., said Mr. Stevens. The money to fund the investments came from cash.
Minnesota Education
ST. PAUL, Minn. - The Minnesota Education Association hired Scudder, Stevens & Clark as the bundled provider for its $4 million 401(k) plan, said Carlos Moreno, controller.
Of the eight investment options offered by MEA, seven now are managed by Scudder: GICs, balanced, income, growth and income, small-cap, indexed equity and international equities. A Midwest equity fund also is managed by First Bank.
The plan had five options managed by Investment Advisers and Metropolitan Life. The previous record keeper was a local accounting firm.
Jeffrey Slocum & Associates assisted with the hiring.
NANA Regional Corp.
KOTZEBUE, Alaska - NANA Regional Corp. hired Regis Retirement Plan Services to provide fully bundled services for its three 401(k) plans, which have assets of less than $10 million, said Shelby Stastny, chief financial officer.
The fund had used Sirach Capital Management, an affiliate of Regis, for investments and Kibble & Prentice for record keeping and administration.
Regis will provide nine investment options - including NANA's first international equity option and three lifecycle funds.
Enhancements to the plan include daily valuation and transfers, and quarterly statements. Those services had been provided semiannually.
Nevada Power Co.
LAS VEGAS - Nevada Power Co. hired Twentieth Century Services as bundled service provider for its $16 million defined contribution plan. Seven Twentieth Century/Benham mutual funds will be offered, as well as a BZW Barclays Global Investors equity index fund. Twentieth Century will provide daily valued record keeping, education and communications and other services. Nevada Power had used Fidelity for investments and Towers Perrin for administration and record keeping.
New Hampshire Retirement
CONCORD, N.H. - The $2.5 billion New Hampshire Retirement System hired Jennison Associates Capital for $150 million in large-cap domestic equities.
J.P. Singh, the fund's director of finance, said Turner Investment Partners was terminated. He cited lagging performance by Turner and the perception that the firm's "strategy for the future was very vague."
Stephen Kneeley, Turner's chief operating officer, said: "We are disappointed to lose an account, especially one with such a short tenure, which was about two years." Mr. Kneeley said he was not told the reasons for the termination.
Evaluation Associates assisted.
Princess Hotels
NEW YORK - Princess Hotels International Inc. hired Regis Retirement Plan Services to provide bundled services for its retirement plans, which total about $22 million. Through a partnership with Kwasha Lipton, Regis will provide daily valued record keeping for three defined contribution, one defined benefit and one non-qualified benefit plan. Regis will provide an automated voice-response system, plan administration and compliance and employee communications.
Princess Hotels will continue to invest all assets in a balanced option, managed by NWQ; NWQ and Regis are both owned by United Asset Management.
Mercer was the company's previous record keeper. Bill Mullins, vice president of personnel, said the decision was based on cost.
Strong Funds
MENOMONEE FALLS, Wis. - Strong Funds selected Sloate, Weisman, Murray to subadvise one of five new mutual funds designed for 401(k) and other retirement plan investors. The fund, Strong Value, will invest in medium and large companies using a value strategy.
The other funds, to be run in-house, are: Strong Growth and Income; Strong Equity Income; Strong Small Cap; and Strong High Yield Bond.
Texas Treasurer's Office
AUSTIN, Texas - The Texas Treasurer's Office hired Phoenix Duff & Phelps to advise the treasury in managing $15 billion in state assets. The firm will serve as an adviser only; management of the funds will remain with the treasurer.
A spokesman for Treasurer Martha Whitehead said it is the first time an outside adviser has been used. The firm will assist the staff in analyzing investment options and provide advice regarding the sale and purchase of securities as well as assisting in preparation of quarterly investment performance reports.
