The $17.4 billion Colorado Public Employees' Retirement Association plans to boost its real estate allocation to 12% of total assets, including its first move to international real estate, said Norman Benedict, deputy executive director-investments.
The fund has targeted 20% of its total real estate allocation to international property. The fund now has 7.3% in real estate, made up of 5% equity real estate and 2.3% mortgages.
Mr. Benedict expects all of the new allocation to go to equity real estate. He said the fund plans to invest opportunistically over a five-year period. Mercer is assisting.
The board of the $7.3 billion San Francisco City and County Employees' Retirement Association approved a plan to invest $160 million this year in alternative investments, which includes venture capital, leveraged buy-outs, turnarounds, and oil and gas. The fund has 3.5% of its assets in alternative investments and a target allocation of 7.5%.
PNC Asset Management Group is dissolving the international investment activities of its Provident Capital Management unit and replacing it with a new firm, CastleInternational Asset Management, Edinburgh.
Provident Capital Management will shift its nearly $1 billion of international assets to CastleInternational pending various approvals. All other PCM activities will continue.
The two managing directors of CastleInternational are Gordon Anderson, the former investment director of Dunedin Fund Managers, and Douglas B. Waggoner, Dunedin's former director of marketing and client services. Mr. Anderson will serve as CIO in Edinburgh; Mr. Waggoner will direct marketing and client servicing from Chicago.
The fixed-income team of Cashman, Farrell is starting its own institutional money management firm, PMG Advisors. It will be headed by managing directors Anthony Basile and Richard Zackroff, former partners of Cashman, Farrell; they will be joined by portfolio manager Gail N. Habecher and trader Natalie Adler.
PMG Advisors is backed by Pennsylvania Merchant Group Ltd., an investment banking and brokerage firm. PMG is now approaching Cashman Farrell's clients to reassign their assets to the new venture, said Mr. Basile.
The partners of Cashman, Farrell voted to dissolve the firm effective March 31.
The $11.7 billion Public School Retirement System of Missouri and $887 million Non-Teacher School Employee Retirement System of Missouri hired the Bank of Ireland Asset Management and Oechsle International Advisors; each will run $610 million in international equities. Of the total $1.22 billion, 95% comes from the teachers' system and the rest from the non-teachers' system.
Assets came from the termination of Capital Guardian Trust and Scudder, Stevens & Clark, which had managed roughly $225 million each of international assets for the teachers' fund, and from a reduction in fixed income.
The $500 million Wake Forest University endowment hired three managers, said Louis R. Morrell, vice president-investments and treasurer.
Nicholas-Applegate Capital Management will run a $20 million minicap equity portfolio; assets will come from a $12.5 million in-house convertible private placement portfolio and donations. Loomis Sayles will run a $25 million bond portfolio, and Western Asset Management will run $25 million in corporate bonds.
In addition, the endowment increased an existing convertible bond assignment of Nicholas-
Applegate, increasing it to $35 million from $20 million.
The Philadelphia Suburban Water Co. hired The Swarthmore Group to manage a $1.6 million equity account for a newly established VEBA that has almost $2 million in assets. The search was done in-house.
John Prom joined MacKay-Shields as managing director and director of marketing. He replaces Joseph Briggs, who left the firm.
Mr. Prom said he might add one or two marketing professionals specializing in industry segments. One would be a replacement for public plan specialist Robert Burdick, who recently joined Loomis Sayles. Mr. Prom was executive vice president and chief marketing officer at CDC Investment Management, where he was replaced by senior vice president Seth Wohlberg.
Stein Roe & Farnham agreed to acquire KJMM Investment Management, which has about $420 million in assets under management, of which approximately 20% is tax exempt. KJMM will merge into Stein Roe's investment counsel division and will focus mainly on high-net-worth individuals.