Abilene Firemen's Relief
ABILENE, Texas - The $20 million Abilene Firemen's Relief and Retirement Fund hired Byrd Capital Market Advisers to manage a $5 million balanced portfolio.
Alaska Permanent Fund
JUNEAU, Alaska - Moving part of its fixed income to external management for the first time, the $18.3 billion Alaska Permanent Fund Corp. selected five managers, said Jim Kelly, research and liaison officer.
It hired three domestic active-duration, broad-market generalist managers: Sanford C. Bernstein, which will be assigned $200 million; Brinson Partners, $125 million; and Alaska Permanent Capital Management, a private firm not connected with the fund, $75 million.
Also hired were two non-dollar specialty managers: Julius Baer Investment Management and Rogge Global Partners. Each received $200 million.
The hirings are contingent on contract signings.
The moves put 10%, or $800 million, of the fund's $8 billion in fixed income with outside managers. The other $7.2 billion will continue to be run internally.
Callan Associates assisted.
BURNABY, British Columbia - The C$766 million (U.S. $559 million) pension fund of B.C. Telecom Inc. nearly doubled its non-U.S. foreign equity allocation and hired its first specialty U.S. equity manager, said Garnet Andrews, cash and investments manager.
The fund raised its non-U.S. exposure to 13.5% from 8%, adding to the assignments of Marvin & Palmer Associates and Sprucegrove Investment Management. Also, it hired Institutional Capital to run U.S. equities, assigning it about 4%. Brockhouse & Cooper assisted in the U.S. equity search.
Funding came from reducing fixed-income and equity allocations; no managers were dropped.
DENVER - The Boettcher Foundation hired Thorsell, Parker Partners to manage a $20 million domestic midcap equity allocation and Ark Investment Management to manage $25 million in large-cap equities. The assets came from cash and from a domestic equity allocation managed by Nelson, Benson & Zellmer, which was terminated, said William Douglas, president of the $170 million fund.
Consultant Monticello Associates assisted.
TIGARD, Ore. - The $200 million pension fund of the Carpenters, District Council Oregon & Washington Locals hired Columbia Consulting Group as its first real estate consultant, said Joe Shearon, client service manager.
Columbia will provide quarterly performance reporting and consulting. It also will work with the fund to review and update the real estate guidelines. The plan has $17 million in real estate investments.
WAYNE, N.J. - Castrol Inc., a division of Burmah Castrol PLC, hired SEI as consultant to its $75 million in defined benefit funds, said James Pierson, director of compensation and benefits.
SEI is assisting fund executives with an asset/liability study, and will make a recommendation on whether Castrol should merge its three U.S. pension funds, Mr. Pierson said. Although the three funds are run separately, each has similar asset allocations - about 60% in U.S. equities and 40% U.S. fixed income, including short-term securities.
Christian Schools International
GRAND RAPIDS, Mich. - The $200 million Christian Schools International pension fund picked incumbents Aeltus Investment Management and Heitman/JMB to run a new real estate allocation, said Gerald Knol, manager-trust fund investments. The fund doubled its real estate allocation to 6% of assets.
SRPINGFIELD, Mass. - The nearly $100 million Hampden County Board of Retirement hired Segal Advisors as consultant, replacing Prudential Securities, which was terminated Jan. 1, said Bill Southerland, executive director.
Segal is conducting an asset allocation study, the results of which will be presented to the board by the end of February. The board has 55% of its assets in stock, 40% in bonds and 5% in cash.
Hull Town Retirement
HULL, Mass. - The Hull Town Retirement System hired Freedom Capital and State Street Bank. Each will manage half of the $7.5 million fund, said Emily A. O'Brien, town accountant and ex-officio pension fund board member. State Street Bank will manage its share in the Strategic Active Management stock and bond funds; Freedom, in a balanced fund.
Capital House, a Scottish money management firm no longer operating in the United States, had been sole manager, Ms. O'Brien said.
Kansas City Schools
KANSAS CITY, Mo. - Trustees of the $445 million Kansas City (Mo.) Public School Retirement System hired two money managers, said Paul Ballard, executive director.
Bankers Trust Global Investment Management will invest about $37 million in a Russell 2500 index fund; Denver Investment Advisers will invest $48 million in a multistrategy bond portfolio.
Funding came from core small-and midcap portfolios and a core bond portfolio managed by Weiss, Peck & Greer.
WP&G will continue to manage a large-cap core portfolio for the system, said Mr. Ballard. A study determined the fund was underweighted in corporate bonds and that its core bond portfolio should be consolidated with one manager, Atlantic Portfolio Analytics & Management, Mr. Ballard said.
London Pacific Life
RALEIGH, N.C. - London Pacific Life & Annuity Co. selected six firms as subadvisers for a broker-sold variable annuity product that will be launched Feb. 1, said Mark Prillaman, executive vice president and chief marketing officer.
The subadvisers will run clones of their existing mutual funds as follows: Lexington Corporate Leaders, a blue-chip stock fund; Miller, Anderson and Sherrerd, MAS Value; MFS, MFS Total Return; Strong Capital, the Strong Growth and Strong International; Berkeley Smaller Cos. Fund, a clone of Govett Smaller Cos. Fund; and Salomon Brothers U.S. Quality Bond and Salomon Brothers Money Market.
EAST CAMBRIDGE, Mass. - The $350 million Middlesex County Retirement System invested $2 million in a commingled real estate fund with Phoenix Home Life Mutual Insurance, said Nancy O'Neill, investment coordinator.
Funding came from liquidating another real estate fund with Shurgard Realty Advisors. Ms. O'Neill said the move was made after one large investor decided to exit the Shurgard fund.
Nashville Metro Employees
NASHVILLE, Tenn. - The $300 million Nashville Metro Employees' Retirement Fund hired EverGreen Capital Management to manage a $15.5 million domestic equity portfolio, said Wirt McKnight, senior vice president with The Bank of Nashville, which oversees the system's investments.
EverGreen will be funded with money taken from Philadelphia Investment Management Group, which was terminated. Mr. McKnight said PIM Group did a good job, but an evaluation of EverGreen indicated that hiring it would enhance the fund's return.
New York Hospital Society
NEW YORK - The $237 million Society of the New York Hospital retirement plan shifted its asset mix, assigning more than 50% of its assets to new managers and entering new asset classes.
The fund's new asset allocation is 50% domestic equities, 13% foreign equities, 2% fixed income, 9% hedge funds and 26% non-traditional investments. Formerly, the fund had 86% in domestic stocks, 10% in hedge funds and 4% intermediate fixed income.
In domestic stocks, Jurika & Voyles was hired to manage $19 million in all-cap stocks; Cohen Klingenstein & Marks, $19 million in large-cap stocks. For international equities, the fund hired Brandes to run $23 million in core and emerging markets, and Genesis to run $8 million in emerging markets.
For non-traditional investments, the fund committed $15 million to AG Arb Partners; $20 million to Davidson Kempner Institutional Partners; $7 million to Keefe Associates; $5 million to Pine Street Partners; $7 million to Purchase Associates; and $7 million to the Merger Fund.
The bulk of the money for the new managers appears to have come from Neuberger & Berman, the fund's existing all-cap manager. When asked about the reduction, a spokesman for Neuberger & Berman said, "That sounds about right." Neuberger & Berman will continue to run about $81 million.
Northern Illinois Gas
AURORA, Ill. - The $400 million pension fund of Northern Illinois Gas added $7.5 million to its allocation with the Dimensional Fund Advisors' 6-10 Small Company commingled fund, said Doug Ruschau, assistant treasurer. The assets came from Mitchell Hutchins Asset Management, which was terminated following the departure of executives managing the pension fund's small-cap allocation, Mr. Ruschau said. DFA now manages $30 million to $35 million in the 6-10 fund for NI Gas.
OKLAHOMA CITY - The $3.3 billion Oklahoma Teachers' Retirement System hired Brandes Investment Partners to invest an $85 million international equity portfolio. Jo Witt, chief investment officer, said Brandes will have an EAFE mandate. The hiring completes the system's 10% allocation to international investments. Funding came from cash flow. Mercer assisted.
Pennsylvania State Employes'
HARRISBURG, Pa. - Trustees of the $16 billion Pennsylvania State Employes' Retirement System allocated $100 million apiece to two international small-cap managers and $20 million to an alternative investments manager.
The board hired Mercury Asset Management International and Pictet International Management as part of its 20% commitment to international stocks. Funding will come from continued reductions of the fund's domestic fixed-income allocation.
Landmark Equity Partners will invest in secondary private equity interests. Funding will come from cash.
Phoenix Home Life
HARTFORD, Conn. - Phoenix Home Life Mutual Insurance Co. chose Wanger Asset Management, Phoenix Realty Securities and ABKB/LaSalle Securities to add investment styles to its Group Strategic Edge variable annuity.
Wanger will subadvise international and domestic stocks. ABKB/LaSalle and Phoenix Realty, a sub of Phoenix Home, will co-manage a real estate securities subaccount.
The variable annuity is targeted for small 401(k) plans.
Safeco Life Insurance
SEATTLE - Safeco Life Insurance selected subadvisers to manage a new variable annuity product called MainSail and added additional subadvisers for an existing $72 million variable annuity product called Spinnaker, according to Richard Ford, assistant vice president-retirement services marketing.
For both variable annuities, Safeco added Lexington's Emerging Markets and Natural Resources funds and Federated Investors' High Yield and Utilities funds. For Spinnaker, which is sold mainly to qualified plans, Federated was selected to also run an international equity fund.
San Angelo Firemen's Relief
SAN ANGELO, Texas - The $18 million San Angelo Firemen's Relief and Retirement Fund hired Byrd Capital Market Advisers and Westwood Management to manage balanced portfolios of $6 million each. A fund spokeswoman said at least one manager was terminated, but she declined to release the name.
South Yorkshire County
BARNSLEY, England - Midland Securities Services, a unit of Midland Bank PLC, has been hired by South Yorkshire County to serve as global custodian for the 1.39 billion ($2.1 billion) South Yorkshire Pensions Authority and the 8 million ($27 million) South Yorkshire Passenger Transport Authority pension funds. Midland replaces the Royal Bank of Scotland.
John Hattersley, the pension authority's fund manager, explained the contract had been put up for review and it was decided that Midland offered the best services.
State Mutual Insurance
ROME, Ga. - State Mutual Insurance Co. hired First Union National Bank of Georgia to manage its $11 million defined benefit plan and $2 million profit-sharing plan, said Robert Strauss, vice president-investments.
Both plans will be invested in First Union's Evergreen mutual funds in large/midcap equity, international equity, domestic bond, stable value and money market funds.
Investment management had been in-house.
Teamsters No. 917
NEW YORK - The $30 million Teamsters Local No. 917 Pension, Annuity and Health Funds hired Amivest Capital Management to manage half its assets in a balanced portfolio. The search was done in-house. Plan administrator Joanne Emmonds would not disclose any other information.
West Yorkshire Superannuation
BRADFORD, England - The West Yorkshire Superannuation Fund has picked Midland Securities Services, a unit of Midland Bank PLC to serve as custodian for 1 billion ($1.5 billion) in fixed-income and global securities for the 2.9 billion fund. Custody of U.K. equities is handled internally.
Midland will take charge of the assets from April 1, replacing Barclays Global Securities Services.
Stuart Imeson, head of superannuation and investments at the West Yorkshire fund, said European Community law requires the fund to tender its appointments periodically. Midland won because it made the cheapest bid, he said.