HORLEY, England - The BAA Pension Scheme and Group Pension Scheme consolidated global custody with Chase Manhattan in London for their 1 billion ($1.54 billion) in assets, said Eric Hunt, group pensions manager. Citibank had previously provided custody of a 515 million balanced portfolio that is managed by Fidelity Pensions Management.
Bay County Employees
BAY CITY, Mich. - Making its first move in the area, the $110 million Bay County Employees' Retirement System selected Denver Investment Advisors to manage midcap growth equities, said Michael J. Regulski, financial officer. The system hopes to assign $10 million to DIA. Funding will come from the system's four other managers. Becker Burke Associates assisted.
BEVERLY, Mass. - The $34 million Beverly Contributory Retirement System hired Loomis Sayles to run $10 million in large-cap value equities. Munder Capital Management was terminated. New England Pension Consultants assisted.
PITTSBURGH - The Carbide/Graphite Group Inc. selected Putnam Investments to provide bundled services for its $33 million 401(k) plan.. The plan will offer six Putnam mutual funds, a Putnam stable value fund and a company stock option. A GIC fund will be eliminated as contracts expire, said Walter E. Damian, vice president, human resources.
Currently, PNC Bank provides daily valued record keeping and a money market and a balanced mutual fund, and the plan offers the American Mutual Fund, Twentieth Century Ultra, the Monitor Perpetual Global Fund and a GIC option.
CHICAGO - Trustees of the $6.4 billion Public School Teachers' Pension & Retirement Fund of Chicago voted to give an additional $15 million to J.P. Morgan Investment Management for equity real estate; to increase the small-cap equity portfolio managed by J&W Seligman to 2.5% of total assets; and to increase ANB Investment Management's minicap fund to 5% of total assets and the ANB total fixed-income fund to 20.5% of total assets.
James Ward, executive director, said he did not know the amounts currently managed J.P. Morgan, J&W Seligman and ANB.
The fund also made four realty hirings: $50 million to CIGNA for real estate equity; $20 million to Heitman/JMB for the Heitman Private Apartment Fund; $20 million to Schroder Real Estate for the Office Opportunity Fund; and $20 million to the Zell/Merrill Lynch Real Estate Opportunity Partners IV Trust Fund. The hirings are subject to statutory and legal review.
The fund also will reduce to 16% of assets the fund's S&P 500 index fund, run by ANB. Mr. Ward didn't know the current percentage.
NEW YORK - Citibank's Landmark mutual funds family selected four subadvisers to run its new multimanager asset allocation funds: Miller, Anderson & Sherrerd; T. Rowe Price; Hotchkis and Wiley; and PIMCO. The firms will co-manage four funds: aggressive growth; growth; moderate growth; and income and growth.
NEW YORK - Dean Witter selected Morgan Grenfell as subadviser for its Dean Witter Japan Fund, a new fund. The fund's adviser is Dean Witter InterCapital.
Detroit Police and Fire
DETROIT - Trustees of the $2.3 billion City of Detroit Policemen and Firemen Retirement System hired Carter Primo Chesterton and Capozzoli Advisory for Pensions to manage a $33 million portfolio of properties and participating mortgages, said Nick Degel, assistant administrative supervisor. CPC will manage the properties secured by the participating mortgages; Capozzoli will oversee the properties owned 100% by the retirement system.
The properties - six offices and two shopping centers - had been managed by MIG Realty Advisors.
ATLANTA - The $535 million Fulton County Employees' Retirement System hired five international equity managers for a total of $50 million. Hired for their international equity mutual funds were Brinson Partners, Grantham Mayo Van Otterloo, Capital Research & Management, Global Asset Management and Warburg Pincus.
Wyatt, its consultant, will make recommendations on allocations at the fund's March 13 meeting. Funding is expected to come from cash flow and some reallocation.
Indiana State Teachers
INDIANAPOLIS - The $3.2 billion Indiana State Teachers' Retirement Fund hired Callan Associates on a project basis to conduct a search for a minority-owned fixed-income manager. The final dollar amount for the hire hasn't been determined, but it possibly will be $20 million, said Robert Newland, investment officer.
City of Irvine
IRVINE, Calif. - The City of Irvine hired American Express Institutional Services to provide bundled services for its $29 million 401(a) plan.
The plan will move to a daily valued record-keeping service. Eight American Express funds, along with the Templeton Foreign Fund and the Oppenheimer Discovery Fund, will be offered. The changes should be effective by the second quarter, said Christine Whalen, a city spokeswoman.
The plan's investments have been managed by a board of trustees, which invested assets in two guaranteed options, managed by Pacific Mutual, a balanced fund managed by Carret and various fixed-income instruments from Orange County and the State of California. Quarterly record keeping was performed by Comprehensive Programs.
Mercer assisted with the changes.
New York State & Local
ALBANY, N.Y. - The $71 billion New York State & Local Retirement Systems hired existing managers Schroder Capital Management International and Morgan Grenfell Asset Management to manage emerging market equity portfolios, said Cynthia Munk, a spokeswoman for the fund. Amounts have not been determined.
GREENWICH, Conn. - Northstar Investment Management Corp. selected Navellier Associates to subadvise the Northstar Special Fund, a small- to midcap growth fund, and Northstar Variable Annuity Growth Fund. They were among the funds Northstar acquired in June from Advest. The funds had been managed by Advest portfolio managers.
HALIFAX, Nova Scotia - The Nova Scotia Public Service Superannuation Fund and the Nova Scotia Teachers' Pension Fund hired two Asian-mandate equity managers to replace Dunedin Fund Managers, said Peter Van Loon, director-investments.
The two pension funds, which have total assets of C$4.1 billion (U.S.$2.977 billion) and use the same investment strategy, dropped Dunedin because of staff departures. Dunedin ran $75 million in an active Asian mandate.
The funds split the mandate, hiring J.P. Morgan to run Japan-only equities and Schroder Capital Management to run Asia, excluding Japan, equities. Each will receive $37.5 million.
Brockhouse & Cooper assisted.
Dunedin officials didn't return phone calls.
TACOMA, Wash. - Frank Russell Investment Management Co. changed some managers in its Equity II, Special Growth, and Emerging Markets mutual funds, according to documents filed with the SEC.
Fiduciary International was added to the Equity II fund, while Jundt Associates was dropped. GlobeFlex Capital was added to the Special Growth fund, and Mitchell Hutchins was dropped. J.P. Morgan Investment Management was added to Russell Investment Management's Emerging Markets fund, replacing Baring Asset Management.
Dollar amounts were not disclosed. A Frank Russell spokesman said company officials don't comment on fund manager changes.
San Francisco City & County
SAN FRANCISCO - The $7.3 billion San Francisco City & County Employees' Retirement System has allocated $30 million each to existing realty managers AMB and RREEF.
Another $26 million probably will be allocated to a real estate manager or managers with a complementary investment approach, but no decision has been made. The money will come from realized investment returns from real estate, planned real estate sales and cash.
The Townsend Group assisted.
SEATTLE - The $1 billion City of Seattle Employees' Retirement System has reallocated its equity assets among six incumbents and two new managers, said Roger Howeiler, executive director.
One growth manager, Zevenbergen Capital, which managed $12 million, was terminated. The new managers are Rainier, which was awarded a $30 million midcap growth allocation, and IDS, $38 million for large-cap growth.
The incumbents will manage money as follows: BZW Barclays Global, $101 million in an S&P 500 stock index fund; NCM, $16 million in large-cap value; Oppenheimer Management, $60 million in large-cap value; Sirach, $38 million in growth; DFA, $40 million in small cap; and Amerindo, $11 million in small cap. Mr. Howeiler wouldn't say how the incumbents' allocations changed.
Wurts Johnson assisted.
MALVERN, Pa. - Vanguard replaced Batterymarch with UBS International in London as adviser of the $1 billion Vanguard Trustees' Equity Fund International Portfolio. Batterymarch had managed the fund since its inception in 1983.
A Vanguard spokesman said performance was "average" on a gross basis, without adjusting for the fund's low expense ratio. Batterymarch officials said the fund had been conservatively managed with a consistent and disciplined value-oriented philosophy, as was directed by Vanguard. The fund outperformed the average international stock fund over one-, three- and 10-year periods but not the five years ended Dec. 31, according to Batterymarch.
POUGHKEEPSIE, N.Y. - The $375 million Vassar College endowment fund created a long-term allocation to hedge fund managers of 5%, and hired Arnhold & S. Bleichroeder Capital as its fifth hedge fund manager, said Anthony Stellato, vice president, treasurer and CFO. The amount to be given Arnhold & S. Bleichroeder hasn't been determined, Mr. Stellato said.
In addition, U.S. equity was changed to 45% from 47%; international equity fell to 18% from 20%; U.S. fixed income went to 9% from 10%; inflation hedges (real estate and oil and gas), fell to 8% from 10%; and private equity rose to 5% from 3%. Non-U.S. fixed income is unchanged at 10%.
VENTURA, Calif. - The $1.3 billion Ventura County Employees' Retirement Association allocated $125 million to new global bond manager Delaware Investment Advisors. The money will come from a rebalancing of the fund made in 1995. Asset Strategy Consulting assisted.
The fund also gave $152 million in pension obligation bond money to existing money managers. Some $69 million went to BZW Barclays Global Investors' aggregate index fund, and $56 million was split between international equity managers Brinson Partners and Putnam Investments. The amounts to the fund's U.S. equity managers was $4 million to Palley-Needleman, $13 million to Trinity Investment Advisors, and $10 million to Pilgrim Baxter.
OLYMPIA, Wash. - The $25 billion pension fund at the $32 billion Washington State Investment Board, Olympia, hired Mercury Asset Management for about a $200 million small-cap Europe portfolio, said Philip Halpern, CIO. Funding came from cash flow. The fund also gave existing manager State Street Global $250 million for passively managed Pacific Basin portfolio. Funding came from terminating Dunedin, which actively managed a Pacific Basin equities portfolio.