MONTREAL - The C$3.6 billion (U.S. $2.62 billion) Air Canada pension fund is doubling its non-North American fixed-income allocation to 3%, said Harry W.C. Gibbs, president-pension investments division.
The fund selected Delaware International Advisors, the fund's existing foreign bond manager, to manage the allocation, after considering searching for other managers.
Funding will come from an in-house $1 billion Canadian fixed-income portfolio.
Delray Beach Employees
DELRAY BEACH, Fla. - The $37 million Delray Beach Employees' Retirement Plan terminated its sole manager and hired two others for balanced portfolios.
STI Capital Management was terminated because of performance and personnel turnover concerns, said Joseph Safford, director of finance. James R. Wood, STI's president, could not be reached for comment.
Kruse, O'Connor & Lang assisted.
LONDON - The 230 million ($347 million) London Borough of Ealing Superannuation Fund hired King Sturge & Co. to run its 8 million real estate portfolio, taking over from Montagu Evans, said Mike Rust, loans and investment officer.
MCLEAN, Va. - The Federal Home Loan Mortgage Corp. hired PIMCO to manage part of its Gold PC portfolio of mortgage-backed securities.
The $1 billion portfolio is now managed by Smith Breeden, BlackRock and Goldman Sachs Asset, which will remain.
A Freddie Mac spokesman would not disclose each manager's allocation. The search was done in-house.
The Gold PC portfolio, started in May, invests Freddie Mac's cash in the agency's Gold PC mortgage-backed securities, taking advantage of mispricings in the market.
Federated Department Stores
CINCINNATI - Federated Department Stores hired Chase Global Investors Services as master trustee for approximately $2 billion in assets for all its pension funds.
Chase replaced State Street Bank, Mellon Trust and Bankers Trust, which were the trustees for the defined benefit and 401(k) plans of Federated and R.H. Macy & Co. when the fund decided to consolidate master trustees.
Rogers Casey was consultant.
SUNNYDALE, Calif. - Global Village Communications hired Putnam Investments to provide bundled services for its $2 million 401(k) plan.
Offered in the program will be eight diversified, Putnam-managed investment options, daily valued record keeping, trust and administration and employee communications and investment education.
The company expects the changes to be implemented March 1, said Rachel Curry, human resources administrator.
The plan previously was bundled with four investment options.
The company used Alburger, Basso and deGrosz for consulting services and the manager search.
GLOUCESTER, Mass. - The $29 million Gloucester Contributory Retirement System is making its first move into international stocks with INVESCO, confirmed Linda Geary, executive secretary. The system will invest 5% of its assets in an ADR international equity fund, she said. The money will come from reducing the $24 million in domestic stocks with Freedom Capital, Ms. Geary said. The system has the remaining $5 million in TAA with Miller Anderson & Sherrerd.
The change was recommended following an asset allocation study by New England Pension Consultants.
WASHINGTON - The $736 million pension fund of the Graphics Communications International Union hired Putnam to manage a $50 million core growth equity portfolio. Putnam will replace Hartland Capital Management, which was terminated for performance reasons, a union official said.
Harris Insight Funds
BOSTON - Harris Insight Funds Trust selected Dunedin Fund Managers to subadvise a new international stock fund.
Harris also is launching several domestic funds, which will be managed by Harris Investment Management. The new offerings are conversions of existing commingled funds.
WILMINGTON, Del. - The $975 million defined benefit fund of Hercules Inc. hired three equity and two fixed-income managers, said Daniel R. McFadden, director-investments.
NWQ Investment Management will run $41 million in value equities, which will be raised to $50 million. Brandywine Asset Management also will run $50 million in value equities. Duncan-Hurst Capital Management will run some $40 million in small-cap equities.
PIMCO and Western Asset Management each will run $55 million in actively managed fixed income, benchmarked to the Lehman broad bond index.
Frank Russell assisted. Funding will come from reallocating among existing managers.
Hoechst Celanese Corp.
SOMERVILLE, N.J. - Hoechst Celanese Corp. has hired Sprucegrove Investment Management to manage a $30 million international equity allocation for its $1.1 billion pension plan. The assets came from a new contribution to the plan, said Robert Rinaldi, manager-treasury planning.
The search was done internally.
HOUSTON - Houston Industries Inc. hired River Oaks Trust as trustee for its recently established 501(c)(9) trust, which will be used to pre-fund retiree medical benefits. A company spokeswoman said funding of the trust is expected to begin this year. LCG Associates assisted.
LOWELL, Mass. - The $75 million Lowell Retirement System hired Reservoir Capital Management to invest $1 million in small-cap stocks, and the North Atlantic Venture Fund II to manage $500,000, said Rosemary Sullivan, executive secretary.
The changes were a result of an asset allocation study conducted by The Hannah Group, which assisted.
Funding came from contributions.
MONTREAL - NATCAN Investment Management hired Institutional Capital Management and Investment Advisers Inc. as subadvisers for two new commingled funds, said Rene Delsanne, vice president of development.
Institutional Capital will run a U.S. value equity fund, while IAI was hired for a U.S. growth equity fund, he said. The amount of assets the firms manage will be determined by the level of client participation.
NATCAN farms out its management of non-Canadian equities, he said, and has a total of C$5.4 billion (U.S. $3.9 billion) under management.
New York City Teachers
NEW YORK - The $16.9 billion New York City Teachers' Retirement System and the $9 billion New York City Teachers' Retirement Variable A fund (a tax-deferred annuity plan) have selected emerging markets managers - contingent on final negotiations, said Jon Lukomnik, New York City's deputy controller for pensions.
Each fund will award $75 million to each of the managers: Morgan Stanley, Schroder Capital and Genesis. In addition, the variable fund hired HSBC Asset for $50 million.
Rogers Casey was the consultant.
BATON ROUGE, La. - The $800 million Parochial Employees' Retirement System of Louisiana hired Scudder, Stevens & Clark to manage an international equity portfolio of $45 million to $50 million.
Thomas B. Sims, administrative director, said the allocation is the fund's first international exposure.
Mercer assisted in the manager search.
PEABODY, Mass. - The Peabody Contributory Retirement System has hired Boston Co. Asset Management for an international equity account of $2 million. The assets, the $46 million fund's first international allocation, came from a reduction of assets managed by Freedom Capital, which was retained, said Patricia Davis Schaeffer, director of finance and administration.
The search was done in-house.
NEW YORK - The Reserve Funds selected subadvisers for two new equity mutual funds in its Reserve Private Equity Series.
Siphron Capital Management will run the Reserve Large Cap Value Equity fund; Kenneth J. Gerbino will manage the Reserve Growth and Income fund.
BAY SHORE, N.Y. - The Transportation Workers Union Suffolk-Transportation Services Retirement Plan hired Amivest Capital Management to offer balanced management for its $5 million 401(k) plan.
The trustee-directed plan had been managed internally.
Reynolds Securities assisted. No other searches are planned.
AUSTIN, Texas - The $13 billion Employees' Retirement System of Texas selected Chase Global Investor Services as custodian, replacing NationsBank, according to a fund spokeswoman.
She said the change followed a periodic rebidding of the custodial contract.
Chase will provide domestic and global custody, securities lending, accounting and performance measurement.
CLEVELAND - TRW Inc. hired Boston Co. Asset Management to run a balanced portfolio for the company's voluntary employees' beneficiary association plan, a 501(c)(9) trust.
Robert Hamje, president of TRW Investment Management, which oversees the company's investible assets, said another manager was terminated.
He wouldn't name that firm, nor would he give the size of the portfolio.
Boston Co. also manages assets for TRW's defined benefit plan.
VALLEY FORGE, Pa. - The Vanguard Group named Barrow, Hanley, Mehwinney and Strauss to subadvise a new Selected Values fund.
Barrow Hanley already subadvises Vanguard's Windsor II, an active equity fund>