NORWOOD, Mass. - Advanced Instruments hired Scudder, Stevens & Clark as bundled provider for its $6 million 401(k) plan, said Gale Wiggin, treasurer. Scudder replaces NYL Benefit Services.
American Institute of CPAs
JERSEY CITY, N.J. - The American Institute of CPAs hired Schwab as bundled provider for its $28 million 401(k) plan. Schwab replaces Citibank as custodian, MetLife as record keeper and BEA Associates as money manager, said Dale Atherton, director of financial management. SEI assisted.
American Skandia Life
SHELTON, Conn. - American Skandia Life Assurance Co. hired Putnam Investments to manage three investment options used in a number of its variable annuity programs: a $300 million international equity fund that had been run by Seligman/Henderson; a $260 million balanced fund from Phoenix; and a new large-cap value account that will be seeded with $150 million from various company sources, said Wade Dokken, executive vice president and chief marketing officer.
BHP Mineral International,
SAN FRANCISCO - BHP Mineral International hired Northern Trust as master trustee following an in-house search, said a pension fund representative. The approximately $350 million defined benefit plan previously had Citibank and Mellon as trustees.
Chicago Public School
CHICAGO - Public School Teachers' Pension and Retirement Fund of Chicago committed a total of up to $42.5 million to two new real estate funds and one private REIT in order to fund its 5%target real estate allocation.
The fund now has 2%of its $7 billion fund in core and opportunistic real estate investments. The board decided at its December meeting to commit up to $20 million to Capital Associates' Limited Partnership real estate fund, up to $7.5 million in Walton Street Real Estate Fund I and up to $25 million to AMB Institutional Realty Advisors' Value Added Fund.
Additional real estate managers could be hired in the first quarter of 1997.
CINCINNATI - Cincinnati Milacron hired Gradison-McDonald Asset Management to manage $10 million in a U.S. stock growth portfolio for its approximately $400 million pension plan.
Funding will come from reducing allocations to existing managers. LCG Associates assisted.
ELK GROVE VILLAGE, Ill. - The Community Consolidated School District 59 hired Kanne Paris & Hoban as the first outside investment adviser for its $20 million reserve fund, said Dennis Saviano, Elk Grove Township school treasurer. Mr. Saviano said the district will adapt the manager's fixed-income active and passive styles, seeking to minimize risk and trying to outperform traditional fixed-income benchmarks.
The district had been managing the fund internally.
HOUSTON - Continental Airlines, Houston, hired Bankers Trust as master trustee of its $500 million defined benefit plan.
Bankers Trust replaced State Street Bank, said John C. Morris, managing director of treasury operations at Continental. Bankers Trust offers a local office and more reasonable prices, he added.
DeMarche Associates assisted.
OMAHA, Neb. - Creighton University hired the Clifton Group to monitor asset allocation and take appropriate steps using futures to keep the mix in line with strategic policy for the $150 million endowment fund.
Leroy A. Galles, associate vice president-finance and treasurer, said Clifton "will be monitoring through our master custodian and take appropriate action through futures" to keep the allocation in line with policy.
The fund's current allocation is near its 60%equities and 40%fixed income split.
The endowment also hired the Common Fund to manage up to $5 million in international equities, the endowment's first move into that asset class, said Leroy A. Galles, associate vice president-finance and treasurer. Assets will come from a reallocation.
Crown Cork & Seal
PHILADELPHIA - Crown Cork & Seal Co. hired Franklin Portfolio Associates to run $75 million in small-cap value equities for its $3 billion pension fund, said Peter M. Marks, manager-corporate finance. Funding came from reallocating among managers.
WEST PATTERSON, N.J. - Cytec Industries Inc. added four investment portfolios from Vanguard to its $260 million 401(k) plan, said Thomas Wozniak, treasurer.
It added an international growth equity fund, a small-cap stock fund, and two life strategy funds, one with a conservative allocation mix and the other with an aggressive mix.
In addition, the plan dropped a Vanguard bond fund, which had less than 2%of the participants' total assets.
The changes bring to eight the total investment portfolio choices, including a company stock fund, offered by the plan. Vanguard provides seven of the investment options.
City of Dearborn Heights
DEARBORN HEIGHTS, Mich. - City of Dearborn Heights hired Comerica as custodian for its $27 million pension fund. Former custodian First Chicago NBD, is exiting the custodial business. Smith Barney assisted.
MEDIA, Pa. - Delaware County Retirement System hired Rich Investments as domestic mid-cap equity manager for its $188 million pension fund, said Richard Daisley, controller.
Rich was awarded $2 million. Funding will come from reducing allocations to Smith Barney Capital Management and CS McKee, which manage most of the system's assets.
Factory Mutual Engineering
NORWOOD, Mass. - Factory Mutual Engineering, Norwood, hired Putnam to run $10 million in a small-cap growth portfolio for its $130 million defined benefit plan.
Assets came from cash flow. No consultant was used.
Federal Home Loan Mortgage
MCLEAN, Va. - Federal Home Loan Mortgage Corp. hired Miller Anderson & Sherrerd and Zurich Investment Management to manage undisclosed amounts in FHLMC Gold PC mortgage-backed securities, said Bob Ryan vice president for mortgage securities marketing.
The two firms were selected to help manage a pool of FHLMC mortgage-backed securities. The pool is intended to demonstrate the value of FHLMC securities relative to the more widely used mortgage-backeds issued by the Federal National Mortgage Association and the Government National Mortgage Association.
Both firms will invest in longer duration mortgage-backed securities, but will hedge the portfolio down to about a three-month duration, Mr. Ryan said. Six other firms are already in the program.
Florida PrePaid College Trust
TALLAHASSEE, Fla. - Florida PrePaid College Trust Fund hired Watson Wyatt Investment Consulting as consultant to the $1.3 billion trust.
Wyatt's first responsibility will be to conduct an asset-liability study, which should be completed by March, said William Montjoy, executive director. The firm also will be doing a risk attribution analysis on its fixed-income investments. Watson Wyatt replaces Hannah Group.
Mr. Montjoy will be leaving the fund at the end of the year to join InTuition Inc. as government relations officer, a new position. A successor has yet to be named.
ATLANTA - Fulton County Retirement System, Atlanta, retained incumbent Watson Wyatt Investment Consulting for a one-year term as consultant to the $580 million pension fund, a fund official said.
Watson Wyatt may perform an asset allocation study in the first half of the year, pending the outcome of an actuarial review and cash flow analysis.
WASHINGTON - IBEW/ NECA, the $564 million defined contribution plan of the International Brotherhood of Electric Workers and National Electrical Contractors Association, has shifted all of its equities to indexing.
It also hired Mellon Capital for a $50 million tactical asset allocation portfolio.
ASB was given responsibility for all of the plan's equities. Formerly it managed 19.7%of the assets in stock index funds; now it will manage the full 27.2% The fund terminated IDS Advisory Group and Oppenheimer Capital, formerly active equity managers for the fund.
In fixed income, ASB was terminated for a portfolio of undisclosed size, as "we consolidated the fixed income," said John R. Long, chief investment officer. The remaining fixed-income managers are Boston Co. Asset Management, CIGNA America Fund, Morley Capital Management, Payden & Rygel and Smith Breeden.
Illinois State Universities
CHAMPAIGN, Ill. - The State Universities Retirement System of Illinois hired Progress Investment Management and RCB Trust to manage emerging managers, including minority- and majority-owned firms. RCB will run a separate account, while Progress will manage the money in an existing commingled fund.
Illinois Teachers' Retirement
SPRINGFIELD, Ill. - The Teachers' Retirement System of Illinois, Springfield, shifted $545 million, most of the changes resulting from the termination of RCM Capital Management. A decision on a new asset allocation is likely to be made at the board's next meeting in late February.
RCM was terminated for a large-cap growth portfolio of at least $475 million. Of that amount, more than $200 million will go to Munder Capital Management and $150 million to Lincoln Capital, both for growth equities. For value equities, $75 million will shift to Oppenheimer, $25 million to Sturdivant and $25 million to Paradigm. All are existing managers.
In a presentation to the board, RCM executives agreed their performance has been average, but said the firm fared better on a risk-adjusted basis.
In addition, Mentor Investment Group was hired for $25 million in small-cap growth stocks; an existing PIMCO equity portfolio was given $25 million more; and an existing small-cap portfolio run by Fiduciary Management was given $20 million more. Funding for all three came from Zimmerman Investment Management, which was terminated earlier.
Jones Lang Wootton
NEW YORK - Jones Lang Wootton USA hired Twentieth Century Mutual Funds and Benham Group to provide bundled services to its $9 million 401(k) plan.
As of Jan. 1, participants will be able to invest in 11 mutual funds, all managed by Twentieth Century and Benham. Full service, daily valued record keeping, administration, trust services and employee communication and investment education will be included. Jones Lang Wootton now uses an unbundled approach with 10 investment options available through Nationwide Insurance and New England. Record keeping is quarterly, provided by Lamon Agency.
Los Angeles County
PASADENA, Calif. - The Los Angeles County Employees Retirement Association selected Equitable Real Estate and AMB Institutional Realty Advisors as core-type separate account real estate managers pending final negotiations. The amount of the allocations from the $20 billion fund hasn't been decided.
Townsend Group assisted in the staff-driven manager search.
IRVING, Texas - The M/A/R/C Group hired Scudder, Stevens & Clark as bundled provider for its ESOP/401(k) plan. Scudder replaces IAI as investment manager, and DCA as record keeper, said Susan Smith, manager of compensation and benefits. She wouldn't disclose the size of the plan.
Towers Perrin assisted.
New York City Deferred
NEW YORK - The New York City Deferred Compensation Plan hired AIM Investment Management to manage a money market portfolio and Segal Consulting as an additional consultant, said Lou Porpora, contract supervisor and operations manager at the $2 billion plan.
The plan hired AIM to manage a total of $225 million in its Short Term Investment Trust Treasury Portfolio. The portfolio had been handled by the Great Western Bank California in a savings account. "AIM offered the best combination of size, experience, performance and fees," he said. Great Western had re-bid for the account assignment. William M. Mercer assisted.
Segal Consulting has been hired by the pension plan to assist Mercer in its consulting duties. Segal will provide employee communication, 457 regulation consulting, and conduct quarterly investment manager reviews.
Mercer will consult on investment issues and will be handling searches.
New York State Common
ALBANY, N.Y. - The New York State Common Retirement Fund, Albany, committed a total of $95 million to three limited partnerships, confirmed H. Carl McCall, sole trustee to the pension fund.
The $78 billion system committed $50 million to the TA/Advent VIII fund, which will make late-stage venture capital investments; $15 million to the Adirondack Communications II fund, which will invest in special situations in the media industry; and $30 million to Vestar Capital II, a special situations fund focusing on middle-market management buy-outs, recapitalizations and growth equity investments.
The investments will be funded from cash, said Mr. McCall.
Northwestern Mutual Life
MILWAUKEE - Northwestern Mutual Life hired subadvisers for its first mutual funds, which will be introduced in the first quarter of 1997. Templeton Investment Counsel has been hired to manage an international equity fund; J.P. Morgan has been hired to manage a growth and income fund. Northwestern Mutual will manage internally the other seven funds in the family.
Oklahoma City- The Okalahoma Police Pension and Retirement System hired PNC to manage a small-cap equity growth portfolio.
PNC will manage $23.5 million of the fund's $900 million in assets starting Dec. 16, said Robert Wallace, executive director of the fund. The firm was hired based on performance, he said.
Target Investors had managed the portfolio and was terminated because of performance.
Bob Zuccaro, president of Target, said the firm had simply found itself out of favor with the pension fund, after five years of top performance compared to other pension funds.
M.C. Robertson assisted.
Omaha School Employees
OMAHA, Neb. - Omaha School Employees committed $6.3 million to K/B Opportunity Fund IV, a real estate fund managed by Koll Investment Management.
Michael Smith, director, said the $510 million fund made the commitment to help meet its 10%real estate target allocation.
Asset Consulting Group assisted.
The fund also decided to give Mellon Capital $10 million for an existing Wilshire 4500 stock index fund. The $10 million had been managed in a small-cap stock portfolio by Apodaca-Johnston Capital Management, which broke up.
Payden & Rygel
LOS ANGELES - Payden & Rygel hired Scottish Widows Investment Management as a subadviser for two new no-load mutual funds. Scottish Widows is managing the International Equity Fund and the domestic and international equity portions of the Global Balanced Fund. Payden & Rygel will manage the fixed income allocation in the balanced fund.
The funds are available for institutional and retail investors and will be distributed through Jack White, Fidelity's Institutional FundsNet and direct marketing. Payden & Rygel funds will be added to Schwab's OneSource Institutional Marketplace in January.
Pennsylvania Public School
HARRISBURG, Pa. - The $35 billion Pennsylvania Public School Employees' Retirement System hired Morgan Stanley Asset Management to manage a $100 million portfolio of real estate investment trust securities.
The hiring is part of Pennsylvania's allocation to real estate and is being funded from cash.
Pennsylvania State Employes
HARRISBURG, Pa. - Pennsylvania State Employes' Retirement System allocated a total of up to $215 million to commercial mortgage-backed securities, venture capital and alternative investments.
Trustees of the $17 billion fund approved up to $75 million for Fidelity Management Trust for investment in commercial mortgage-backed securities; up to $100 million to P/A Fund III, offered jointly by Patricof & Co. and Adams Capital for venture capital; and up to $40 million to a Frontenac fund that makes alternative investments in consumer/retail, information technology and health-care industries.
Trustees also committed $50 million to CoreStates Enterprise Capital Group for subordinate loans to small Pennsylvania-based companies through the pension fund's Pennsylvania Capital Fund.
PHILADELPHIA - The Philadelphia Municipal Pension Fund picked Provident Capital Management as a large-cap value equity manager, and Rittenhouse Financial and Brown Capital Management as large-cap growth equity managers, said Joseph J. Herkness, executive director of the $2.8 billion fund.
The new managers replace Sirach Capital, which was terminated last year, Atalanta/Sosnoff which was terminated recently, and a third large-cap manager that was not identified.
Money to finance the new money managers will come from the terminated managers and from rebalancing. The three managers will get between $50 million and $85 million each, Mr. Herkness said.
LARGO, Md. - SFA Inc., Largo, hired Twentieth Century/Benham Group as bundled provider for its $4.5 million 401(k) plan, said Lisa Broome, director-human resources.
SFA will offer 11 options - including self-directed brokerage -plus daily valued record keeping.
Ms. Broome said the plan previously had four investment options.
CRANSTON, R.I. - Taco Inc. hired Scudder, Stevens & Clark as its first bundled provider for both its 401(k) and profit-sharing plans.
The firm will provide administration and investment services to the plans, which have a total of $6.5 million in assets, said Kyle Adamonis, director of human resources.
The plans now will have a total of seven options; previously, they had three options. Ms. Adamonis declined to name the former providers.
The manager search was done in-house.
City of Tampa Employees'
TAMPA - City of Tampa Employees' Retirement Fund hired Taplin, Canida & Habacht as its second fixed-income manager, said Paul Broughton, accountant at the $360 million fund.
Taplin was hired to complement existing bond manager Madison Investment Advisors' conservative management style, he said.
The firm will handle about half of the $80 million Madison now runs.
Sandra Morelli of Mercer assisted.
United Auto Workers
DETROIT - The United Auto Workers pension fund hired Dean Witter Investment Consulting Services as consultant for its $500 million-plus fund, and Institutional Shareholder Services to vote shares on the fund's behalf, said Gary Jones, administrative assistant to Ron Wyse, UAW secretary/treasurer.
The pension fund previously used Marco Consulting as investment consultant and to vote proxies.