Baker Hughes Inc.
HOUSTON - Baker Hughes Inc. is adding the Vanguard Wellington Fund to its $475 million 401(k) plan, said Steve Lawrence, financial benefits manager.
The balanced fund will be the fund's sixth option and its first fund from Vanguard.
J.E. Stone and Associates assisted with the search.
BOSTON - The Boston Foundation hired Fiduciary Trust and Haldor Investment Advisors to run a portion of the $417 million fund, said James Pitts, vice president of finance and administration.
Fiduciary and Haldor offer balanced, high-yield and high-growth portfolios.
GREENVILLE, S.C. - Bowater Inc. hired two equity managers and may hire two other managers in the next six months, a company official said.
Hired were Putnam Investments for small-cap growth and Reich & Tang for midcap value; they will evenly split $35 million.
Funding came partly from terminating two managers the official wouldn't name; one managed small-cap stocks, the other ran large-cap stocks.
The $370 million plan is also looking into hiring another international equity manager to manage roughly $30 million or 8%of the fund's assets and a large-cap enhanced index manager for an undetermined amount.
RogersCasey is assisting.
GREENSBORO, N.C. - Burlington Industries hired its first active fixed-income manager.
Wellington Management was hired as part of the restructuring of the $325 million fund to 65%equities and 35%fixed-income from 100%equities, said Park Davidson, treasurer.
BZW Barclays Global Investors is managing the rest of the fixed-income mandate in a passive account.
Mr. Davidson wouldn't disclose the exact size of each account, but said BZW Barclays and Wellington will split the fixed-income allocation evenly.
Frank Russell assisted.
Carolina Power & Light
RALEIGH, N.C. - Carolina Power & Light Co. hired two managers to add two investment portfolio options for its more than $600 million 401(k) plan, said Donald F. Ray, project business analyst. Capital Research will offer its Euro-Pacific fund; Putnam will offer its New Opportunities aggressive growth fund.
The moves bring to five the total investment choices offered by the plan.
LCG Associates assisted with the changes.
The three existing investment choices are a GIC-type fund offered by IDS, and a balanced fund and an equity fund, both offered by Fidelity.
Mercer will continue as record keeper and Wachovia as trustee.
Centerior Energy Corp.
INDEPENDENCE, Ohio - Centerior Energy Corp. added two options and replaced one manager for its $240 million 401(k) plan, said Greg Tropf, senior investment analyst. The plan now has seven options.
Separately, the company hired Mellon Trust as trustee of its $125 million nuclear decommissioning fund, replacing First Chicago NBD. Summit Strategies Group assisted.
In the 401(k), added were the Van Kampen American Capital Emerging Growth Fund and Stein Roe Capital Opportunity Aggressive Growth Fund. The Dodge and Cox Balanced Fund replaced the Phoenix Balanced Fund.
Phoenix Investment Counsel was terminated because of performance, said Mr. Tropf. Phoenix officials would not comment on the termination.
The search was completed in-house.
DALLAS - Centex Corp. hired State Street Bank & Trust as bundled provider for its $118 million 401(k) plan, said Jean Parnell, benefits manager.
State Street replaces Hewitt Associates as record keeper; the company had outgrown Hewitt's technological capabilities, said Ms. Parnell.
State Street continues to provide all investment options.
The Municipal Employees' Annuity and Benefit Fund of Chicago invested $40 million in Capital Associates' new apartment fund and committed $20 million to Mesirow Financial's Venture Seven Fund.
In addition, the $4 billion fund hired Ernst & Co. and Frank Russell for a one-year commission recapture program. A total of 20%of the fund's trades will be directed to the two firms.
Diversified Investment Advisors
The fund is being added as part of DIA's bundled defined contribution package and brings to 24 the number of investment funds offered.
Inland Steel Industries
CHICAGO - Inland Steel Industries hired Warburg Pincus to manage an international equity fund and a domestic emerging growth fund for its $80 million hourly 401(k) plan.
Terence R. Rogers, director-pensions and risk management, said the additions bring to seven the total investment options. Fidelity manages the others.
The Warburg Pincus fund is the plan's first international option.
Los Angeles County
PASADENA, Calif. - The Los Angeles County Employees' Retirement Association selected Hamilton Lane as its alternative investment consultant following a search.
Hamilton Lane replaces Chancellor Capital Management, which had been with the $20 billion fund for five years, but whose contract was set to expire at the end of this year.
The retirement system allocates about 6%of assets to alternative investments.
The search was done by staff with the assistance of its pension consultant, Frank Russell.
AUGUSTA, Maine - The Maine Retirement System hired State Street Global Advisors to manage $2.2 billion in indexed equity and fixed income, said Claude Perrier, executive director of the $4.5 billion fund.
State Street replaces PanAgora Asset Management.
Mr. Perrier said Maine switched because fund officials wanted a larger manager with more fund selections. "PanAgora is an excellent firm, but we simply outgrew them," he said.
State Street will manage funds benchmarked to the Wilshire 5000, Shearson Lehman Aggregate Bond, S&P 500 Value Equity and Growth Equity indexes.
The Maine fund might rebalance its indexed investments to shift assets from equity to fixed income, depending on equity returns, Mr. Perrier said.
Ennis Knupp assisted.
No other searches are planned.
Navy-Marine Corps Relief
ARLINGTON, Va. - The Navy-Marine Corps Relief Fund hired Standish, Ayer & Wood to run $7.5 million in an unequitized market-neutral portfolio, said Jim Koltes, chief of the asset allocation committee.
The $150 million fund boosted its market-neutral allocation to 15%of total assets by trimming its core bond portfolio. The change was recommended in an asset allocation study, Mr. Koltes said.
Numeric Investors and Weiss Associates also run market-neutral portfolios for the fund.
Ohio School Employees
COLUMBUS, Ohio - The Ohio School Employees' Retirement System hired three managers and might hire more after an asset allocation study that should be completed in early 1997.
The $5.6 billion fund hired INVESCO for a $75 million real estate separate account, Oak Associates for a $25 million large-cap growth mandate and Johnson Investment Counsel for $10 million in core bonds. Assets came from cash.
Frank Russell and Ronald A. Karp Associates assisted.
The hirings were made to complete changes from a prior asset allocation study, said Bob CowSee Hirings on page 5Continued from page 55
man, assistant director of investments.
The new asset review, being done by Frank Russell, is in response to the introduction of the prudent person rule that will go into effect March 1.
CHEVY CHASE, Md. - The Profit Funds Investment Trust family of funds, advised by Investor Resources Group, selected Edgar Lomax to subadvise its new value equity fund.
SEI's Fund Resources division assisted with the launch and manager selection.
Santa Barbara Group
LOS ANGELES - The Santa Barbara Group of Mutual Funds, a new fund family, hired two firms to run its first two funds.
The funds are The Bender Growth fund, managed by Robert Bender & Associates, and the Starbuck-Tisdale Growth and Income fund, managed by Starbuck, Tisdale & Associates.
The funds will be offered through financial planners and broker-dealers.
SEI's Fund Resources division assisted in the launch of the funds and selection of managers.
Virginia Retirement System
RICHMOND, Va. - The Virginia Retirement System, Richmond, is moving $130 million from its actively managed domestic equity portfolio into its long-short program, said Nancy Everett, deputy chief investment officer.
The $23 billion pension fund hired Symphony to manage $100 million in a long-short strategy, and gave the balance to existing long-short manager Numeric Investors. With the allocations, the system will have $1.02 billion in its long-short strategy.
The pension fund has not yet determined from which domestic managers it will shift the money; Ms. Everett said none would be terminated.
The fund also is conducting an asset allocation study and might consider increasing its core international equity exposure as part of the study, she said. Watson Wyatt Worldwide, which is conducting the study, will present its recommendations in the first quarter of 1997.
The fund last conducted an asset allocation study two years ago.
Washington State Investment
OLYMPIA, Wash. - The Washington State Investment Board committed to two venture capital funds and one real estate fund, said James Parker, executive director of the $27.4 billion pension fund.
The board will invest $40 million in Vestar Capital Partners III Fund, $40 million in Contrarian Capital Fund II and $50 million in Lone Star Opportunity Real Estate Fund.
Although funding was planned to come from a reduction in domestic equity, Mr. Parker believes most will come from cash flow.
Brinson Partners assisted in the venture capital search; Pension Consulting Alliance, the real estate search.
Separately, the board is finishing up its asset review and Mr. Parker expects a decision to be made on a new allocation at the Dec. 19 meeting.